Best Buy (NYSE:BBY) Shares Gap Down – Here’s Why

Best Buy Co., Inc. (NYSE:BBY)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $93.03, but opened at $86.56. Best Buy shares last traded at $85.61, with a volume of 1,927,809 shares changing hands.

Analysts Set New Price Targets

BBY has been the subject of a number of analyst reports. BNP Paribas raised shares of Best Buy to a “strong-buy” rating in a research report on Thursday, August 29th. Loop Capital boosted their target price on shares of Best Buy from $100.00 to $110.00 and gave the company a “buy” rating in a report on Friday, August 30th. Melius Research initiated coverage on shares of Best Buy in a report on Monday, September 23rd. They issued a “hold” rating and a $100.00 target price for the company. DA Davidson restated a “buy” rating and issued a $117.00 target price on shares of Best Buy in a report on Tuesday, October 15th. Finally, The Goldman Sachs Group boosted their target price on shares of Best Buy from $95.00 to $116.00 and gave the company a “buy” rating in a report on Tuesday, September 3rd. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $103.71.

Best Buy Stock Down 7.8 %

The company has a market capitalization of $18.42 billion, a price-to-earnings ratio of 14.83, a PEG ratio of 2.34 and a beta of 1.47. The stock’s fifty day simple moving average is $94.60 and its two-hundred day simple moving average is $88.97. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.01 and a quick ratio of 0.34.

Best Buy (NYSE:BBY) last released its quarterly earnings results on Thursday, August 29th. The technology retailer reported $1.34 EPS for the quarter, topping the consensus estimate of $1.16 by $0.18. The business had revenue of $9.29 billion during the quarter, compared to analyst estimates of $9.23 billion. Best Buy had a net margin of 2.96% and a return on equity of 47.19%. The company’s quarterly revenue was down 3.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.22 earnings per share. On average, sell-side analysts predict that Best Buy Co., Inc. will post 6.28 earnings per share for the current fiscal year.

Best Buy Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 10th. Stockholders of record on Thursday, September 19th were given a dividend of $0.94 per share. The ex-dividend date of this dividend was Thursday, September 19th. This represents a $3.76 annualized dividend and a dividend yield of 4.38%. Best Buy’s dividend payout ratio (DPR) is 64.83%.

Hedge Funds Weigh In On Best Buy

Several large investors have recently made changes to their positions in the business. Richardson Financial Services Inc. raised its position in Best Buy by 190.9% during the second quarter. Richardson Financial Services Inc. now owns 320 shares of the technology retailer’s stock valued at $27,000 after acquiring an additional 210 shares in the last quarter. Innealta Capital LLC acquired a new position in Best Buy during the second quarter valued at approximately $35,000. Harbor Capital Advisors Inc. acquired a new position in Best Buy during the third quarter valued at approximately $40,000. LRI Investments LLC grew its holdings in Best Buy by 632.1% during the third quarter. LRI Investments LLC now owns 388 shares of the technology retailer’s stock valued at $40,000 after purchasing an additional 335 shares during the last quarter. Finally, Whittier Trust Co. grew its holdings in Best Buy by 53.3% during the second quarter. Whittier Trust Co. now owns 492 shares of the technology retailer’s stock valued at $41,000 after purchasing an additional 171 shares during the last quarter. Institutional investors own 80.96% of the company’s stock.

About Best Buy

Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.