Looking To Buy Best Buy Co. Inc. (BBY)? Read This First

Best Buy Co. Inc. (NYSE:BBY) saw an upside of 1.52% to close Monday at $108.88 after adding $1.63 on the day. The 5-day average trading volume is 1,913,320 shares of the company’s common stock. It has gained $110.38 in the past week. An average of 2,293,895 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,349,452.

BBY’s 1-month performance is -2.22% or -$2.47 on its low of $103.42 reached on 10/01/21. The company’s shares have touched a 52-week low of $95.93 and high of $128.57, with the stock’s rally to the 52-week high happening on 05/10/21. YTD, BBY has achieved 9.11% or $9.09. However, the current price is down -15.32%% from the 52-week high price.


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Insider Transactions

On Sep 21, 21 days have gone by since the last insider trading activity for Best Buy Co. Inc. (BBY). Eldracher Deborah DiSanzo (President, Best Buy Health) most recently sold 1,776 shares at $107.18 per share on Sep 21. This transaction cost the insider $190,346. Chief Customer Officer, Peterson Allison, sold 120 shares at a price of $107.18 on Sep 21. Then, on Aug 23, Chief Financial Officer Bilunas Matthew M sold 819 shares at a price of $113.16 per share. This transaction amounted to $92,677.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 23.49 and a low of 8.725. BBY stock has a beta of 1.56. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.51 while the price-to-book (PB) in the most recent quarter is 6.28, with the price to cash flow ratio at 39.92.

Best Buy Co. Inc. pays an annual dividend of $2.80 per share. Its dividend yield is 2.57% and the payout ratio is 23.70%. BBY’s most recent quarterly dividend payment was made on Oct. 5, when it paid $0.70 a share compared with prior rate of $0.70, down 0.0% from last year’s. The company has boosted its dividend for the last 1 consecutive years with the latest dividend increase of $0.15 reported on Thursday February 25 2021. Measured over the last 3 years, the Dividend has been growing by 61.76% yearly.

It is projected that Best Buy Co. Inc.’s next ex-dividend date will be on Co’s. BBY is expected to distribute $17-Dec as its next dividend.

Best Buy Co. Inc.’s quick ratio for the period ended July 30 was 0.50, with the current ratio over the same period at 1.20 meaning that BBY stock is not able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending July 30 was 0.29, while the total debt to equity was 0.32. In terms of profitability, the gross margin trailing 12 months is 22.70%. The trailing 12-month EBITDA margin is 7.22% while for the period ending July 30; Best Buy Co. Inc.’s operating margin was 6.00%. The firm’s gross profit as reported stood at $10.57 billion against revenue of $47.26 billion.

Earnings Surprise

For the quarterly period ending July 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 27.74% to $11.85 billion, while revenue of $13.31 billion was -12.36% off the previous quarter. Analysts expected BBY to announce $1.85 per share in earnings in its latest quarter, but it posted $2.98, representing a 61.10% surprise. EBITDA for the quarter stood at more than $1.01 billion. BBY stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 14.24 billion, with total debt at $4.1 billion. Shareholders hold equity totaling $245.96 million

Technical Picture

Let’s look briefly at Best Buy Co. Inc. (BBY) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 11 October was 54.97% to suggest the stock is trending Neutral, with historical volatility in this time period at 22.70%.

The stock’s 5-day moving average is $107.17, reflecting a +3.21% or $3.39 change from its current price. BBY is currently trading -2.85% above its 20-day SMA, -4.23% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -3.09% and +6.39% respectively.

Stochastic %K and %D was 53.54% and 44.13% and the average true range (ATR) pointed at 2.90. The RSI (14) points at 50.00%, while the 14-day stochastic is at 65.16% with the period’s ATR at 2.91. The stock’s 9-day MACD Oscillator is pointing at 1.04 and 0.83 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Best Buy Co. Inc. (NYSE: BBY), Piper Sandler reiterated its an Overweight rating for the company but lifted their price target by $146 to $150. Analysts offering their rating for BBY stock have a consensus rating for the stock as Overweight. Currently, 2 brokerage advisors rate BBY as a “sell,”, while 14 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 3 rates the stock as overweight while 10 have offered a “buy” rating.

What is BBY’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $80.00 and a high of $157.00, with their median price target at $134.00. Looking at these predictions, the average price target given by analysts is for Best Buy Co. Inc. (BBY) stock is $130.19.

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