Best Buy (BBY) Cut to “Hold” at Zacks Investment Research

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Zacks Investment Research lowered shares of Best Buy (NYSE:BBY) from a buy rating to a hold rating in a research report released on Wednesday.

According to Zacks, “Best Buy’s investments to upgrade operations, with special focus on developing omni-channel capabilities, supply chain and cost reduction efforts coupled with reinforcement of partnership with vendors bode well. The company’s “Best Buy 2020: Building the New Blue” program aims to explore growth opportunities and optimize cost. Further, it continues investing in areas like appliances, In-Home Advisor, health space, smart home and Total Tech Support. These helped the stock to outpace its industry in a year. Best Buy posted upbeat results as well. This is evident from its second-quarter fiscal 2019 performance. Management raised its guidance for the full year. The company is concentrating on enhancement of mobile phone category in its big-box stores and online under Mobile 2020 strategy. However, higher investments in supply chain, increased transportation costs and national rollout of Total Tech Support might dent margins.”

A number of other analysts have also recently weighed in on the stock. Bank of America cut shares of Best Buy from a buy rating to a neutral rating and cut their price objective for the stock from $92.00 to $70.00 in a report on Tuesday, November 13th. Morgan Stanley raised their price objective on shares of Best Buy from $78.00 to $80.00 and gave the stock an equal weight rating in a report on Thursday, October 11th. Credit Suisse Group raised their price objective on shares of Best Buy from $74.00 to $78.00 and gave the stock a hold rating in a report on Wednesday, August 29th. Barclays reissued a buy rating and set a $90.00 price objective on shares of Best Buy in a report on Wednesday, August 29th. Finally, Raymond James raised their price objective on shares of Best Buy from $87.00 to $90.00 and gave the stock a buy rating in a report on Wednesday, August 29th. Two investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and four have issued a buy rating to the company. The stock currently has an average rating of Hold and a consensus price target of $79.25.

BBY stock opened at $66.43 on Wednesday. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.52 and a current ratio of 1.21. Best Buy has a twelve month low of $54.34 and a twelve month high of $84.37. The company has a market cap of $18.24 billion, a price-to-earnings ratio of 13.47, a P/E/G ratio of 1.11 and a beta of 1.01.

Best Buy (NYSE:BBY) last released its quarterly earnings data on Tuesday, August 28th. The technology retailer reported $0.91 earnings per share for the quarter, topping analysts’ consensus estimates of $0.83 by $0.08. Best Buy had a net margin of 2.44% and a return on equity of 40.28%. The company had revenue of $9.38 billion for the quarter, compared to analysts’ expectations of $9.25 billion. During the same quarter last year, the company earned $0.69 earnings per share. The firm’s revenue for the quarter was up 4.6% on a year-over-year basis. As a group, analysts predict that Best Buy will post 5.11 earnings per share for the current year.

In other news, insider Patricia H. Walker sold 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 29th. The shares were sold at an average price of $77.66, for a total transaction of $388,300.00. Following the transaction, the insider now directly owns 21,698 shares in the company, valued at $1,685,066.68. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Corie S. Barry sold 6,783 shares of the firm’s stock in a transaction that occurred on Friday, October 19th. The stock was sold at an average price of $72.80, for a total transaction of $493,802.40. Following the transaction, the chief financial officer now owns 80,961 shares in the company, valued at $5,893,960.80. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 76,711 shares of company stock worth $6,081,426. Insiders own 0.75% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the company. LFA Lugano Financial Advisors SA purchased a new position in shares of Best Buy during the second quarter worth approximately $174,000. Squar Milner Financial Services LLC purchased a new position in shares of Best Buy during the second quarter worth approximately $201,000. People s United Financial Inc. purchased a new position in shares of Best Buy during the third quarter worth approximately $222,000. RFG Advisory Group LLC purchased a new position in Best Buy in the 2nd quarter valued at $210,000. Finally, Hilltop Holdings Inc. purchased a new position in Best Buy in the 3rd quarter valued at $225,000. Institutional investors and hedge funds own 85.21% of the company’s stock.

Best Buy Company Profile

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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