DA Davidson Brokers Cut Earnings Estimates for Best Buy Co., Inc. (NYSE:BBY)
Best Buy Co., Inc. (NYSE:BBY – Get Rating) – Analysts at DA Davidson decreased their Q1 2023 earnings per share (EPS) estimates for Best Buy in a report issued on Monday, May 23rd. DA Davidson analyst M. Baker now expects that the technology retailer will post earnings of $1.59 per share for the quarter, down from their previous estimate of $1.71. DA Davidson also issued estimates for Best Buy’s FY2023 earnings at $8.47 EPS and FY2024 earnings at $10.73 EPS.
Best Buy (NYSE:BBY – Get Rating) last posted its earnings results on Thursday, March 3rd. The technology retailer reported $2.73 earnings per share for the quarter, hitting the consensus estimate of $2.73. Best Buy had a net margin of 4.74% and a return on equity of 63.23%. The business had revenue of $16.37 billion for the quarter, compared to analyst estimates of $16.54 billion. During the same quarter in the prior year, the firm earned $3.48 EPS. The firm’s quarterly revenue was down 3.4% compared to the same quarter last year.
Several other equities research analysts have also weighed in on the stock. Wedbush lowered their target price on shares of Best Buy from $110.00 to $80.00 and set a “neutral” rating on the stock in a report on Monday, May 16th. Jefferies Financial Group increased their price objective on shares of Best Buy from $137.00 to $140.00 and gave the stock a “buy” rating in a report on Friday, March 4th. Wells Fargo & Company decreased their price objective on shares of Best Buy from $110.00 to $90.00 and set a “buy” rating on the stock in a report on Monday, February 28th. Guggenheim decreased their price objective on shares of Best Buy from $140.00 to $130.00 and set a “buy” rating on the stock in a report on Friday, March 4th. Finally, Zacks Investment Research raised shares of Best Buy from a “sell” rating to a “hold” rating and set a $76.00 price objective on the stock in a report on Monday. Five equities research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. Based on data from MarketBeat, Best Buy has an average rating of “Buy” and an average price target of $109.13.
BBY opened at $72.59 on Tuesday. The firm’s 50-day simple moving average is $92.00 and its 200-day simple moving average is $100.43. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.43 and a current ratio of 0.99. Best Buy has a twelve month low of $69.07 and a twelve month high of $141.97. The firm has a market cap of $16.33 billion, a price-to-earnings ratio of 7.38, a PEG ratio of 0.86 and a beta of 1.42.
A number of hedge funds have recently made changes to their positions in BBY. Norges Bank acquired a new stake in Best Buy during the 4th quarter worth approximately $251,898,000. Allspring Global Investments Holdings LLC acquired a new stake in shares of Best Buy in the fourth quarter valued at approximately $190,672,000. Franklin Resources Inc. raised its holdings in shares of Best Buy by 1,039.1% in the third quarter. Franklin Resources Inc. now owns 1,980,368 shares of the technology retailer’s stock valued at $209,345,000 after purchasing an additional 1,806,513 shares during the last quarter. Capital World Investors acquired a new stake in shares of Best Buy in the first quarter valued at approximately $99,081,000. Finally, First Trust Advisors LP raised its holdings in shares of Best Buy by 37.2% in the fourth quarter. First Trust Advisors LP now owns 1,939,489 shares of the technology retailer’s stock valued at $197,052,000 after purchasing an additional 526,208 shares during the last quarter. Hedge funds and other institutional investors own 80.79% of the company’s stock.
In other Best Buy news, CEO Corie S. Barry sold 17,741 shares of the firm’s stock in a transaction that occurred on Tuesday, March 22nd. The shares were sold at an average price of $99.06, for a total transaction of $1,757,423.46. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Brian A. Tilzer sold 4,259 shares of the firm’s stock in a transaction that occurred on Tuesday, March 22nd. The stock was sold at an average price of $99.06, for a total transaction of $421,896.54. The disclosure for this sale can be found here. Insiders sold a total of 36,955 shares of company stock worth $3,662,097 over the last quarter. 0.36% of the stock is currently owned by corporate insiders.
The company also recently declared a quarterly dividend, which was paid on Thursday, April 14th. Investors of record on Thursday, March 24th were given a $0.88 dividend. This represents a $3.52 dividend on an annualized basis and a dividend yield of 4.85%. This is an increase from Best Buy’s previous quarterly dividend of $0.70. The ex-dividend date was Wednesday, March 23rd. Best Buy’s dividend payout ratio (DPR) is currently 35.77%.
About Best Buy (Get Rating)
Best Buy Co, Inc retails technology products in the United States and Canada. The company operates in two segments, Domestic and International. Its stores provide computing 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, home theater, portable audio comprising headphones and portable speakers, and smart home products.
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