Best Buy Co Inc (NYSE:BBY) – Stock analysts at Oppenheimer raised their Q1 2020 earnings per share (EPS) estimates for Best Buy in a research note issued on Wednesday, February 27th. Oppenheimer analyst B. Nagel now anticipates that the technology retailer will earn $0.84 per share for the quarter, up from their previous forecast of $0.80. Oppenheimer also issued estimates for Best Buy’s Q2 2020 earnings at $0.98 EPS, Q3 2020 earnings at $0.98 EPS and Q4 2020 earnings at $2.75 EPS.
Best Buy (NYSE:BBY) last issued its quarterly earnings results on Wednesday, February 27th. The technology retailer reported $2.72 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.57 by $0.15. The firm had revenue of $14.80 billion for the quarter, compared to analyst estimates of $14.69 billion. Best Buy had a net margin of 2.52% and a return on equity of 44.41%. Best Buy’s quarterly revenue was down 3.7% compared to the same quarter last year. During the same period last year, the company posted $2.42 EPS.
A number of other research analysts have also weighed in on the stock. Bank of America lowered shares of Best Buy from a “neutral” rating to an “underperform” rating and decreased their price target for the company from $70.00 to $50.00 in a research note on Monday, December 17th. Zacks Investment Research lowered shares of Best Buy from a “hold” rating to a “sell” rating in a research note on Wednesday, January 23rd. Deutsche Bank reaffirmed a “buy” rating on shares of Best Buy in a research note on Friday, January 11th. Wells Fargo & Co raised shares of Best Buy to a “buy” rating in a research note on Thursday. Finally, Moffett Nathanson raised shares of Best Buy from a “sell” rating to a “neutral” rating in a research note on Wednesday, December 19th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating and seven have given a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $76.06.
Shares of Best Buy stock opened at $68.84 on Friday. The stock has a market capitalization of $16.26 billion, a P/E ratio of 15.57, a P/E/G ratio of 1.01 and a beta of 0.94. Best Buy has a twelve month low of $47.72 and a twelve month high of $84.37. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.28 and a current ratio of 1.10.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 10th. Shareholders of record on Wednesday, March 20th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 2.91%. This is a positive change from Best Buy’s previous quarterly dividend of $0.45. The ex-dividend date is Tuesday, March 19th. Best Buy’s dividend payout ratio (DPR) is 40.72%.
Best Buy announced that its board has approved a stock buyback plan on Wednesday, February 27th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the technology retailer to reacquire up to 18.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board believes its shares are undervalued.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Signet Investment Advisory Group Inc. purchased a new stake in shares of Best Buy during the 4th quarter valued at approximately $31,000. Larson Financial Group LLC purchased a new stake in shares of Best Buy during the 4th quarter valued at approximately $33,000. Semmax Financial Advisors Inc. purchased a new stake in shares of Best Buy during the 4th quarter valued at approximately $33,000. PRW Wealth Management LLC purchased a new stake in shares of Best Buy during the 4th quarter valued at approximately $33,000. Finally, Pearl River Capital LLC purchased a new stake in shares of Best Buy during the 4th quarter valued at approximately $34,000. 85.27% of the stock is currently owned by institutional investors and hedge funds.
About Best Buy
Best Buy Co, Inc operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide consumer electronics, including digital imaging, health and fitness, home automation, home theater, and portable audio products; computing and mobile phones, such as computing and peripherals, networking products, tablets, smart watches, and e-readers, as well as mobile phones comprising related mobile network carrier commissions; and entertainment products, including drones, movies, music, and technology toys, as well as gaming hardware and software, and virtual reality and other software products.
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