Best Buy Co. Inc. (NYSE:BBY) finished Wednesday with a subtraction of -$0.11 to close at $79.05, a downside of -0.14 percent. An average of 1,812,040 shares of common stock have been traded in the last five days. There was a fall of -$2.19 in the past week, and it reached a new high 8 times over the past 12 months. The last 20 days have seen an average of 1,873,620 shares traded, while the 50-day average volume stands at 2,207,826.
BBY stock has decreased by -3.31% in the last month. The company shares reached their 1-month lowest point of $77.69 on 08/08/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $60.78 and a high of $93.32 in 52 weeks. It has reached a new high 10 times so far this year and lost -1.45% or -$1.16 in price. In spite of this, the price is down -15.29% from the 52-week high.
Top 5 AI Stocks to Buy for 2023
The artificial intelligence (AI) revolution is already here. And it's about to change everything we know about everything.
According to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. And investors like you always want to get in on the hottest stocks of tomorrow. Here are five of the best ways to profit from the AI boom.
Click Here to Download the FREE Report.
Sponsored
Insider Transactions
BBY stock investors should be aware that Best Buy Co. Inc. (BBY) stock had its last reported insider trading activity 16 days ago on Jul 25. In this transaction, the insider spent $8,524,334. SEVP, HR, Corp Affair & Canada, Scarlett Kathleen, disposed of 34,191 shares at a price of $81.30 on Jul 05. The insider now owns more than $2,779,684 worth of shares. Prior to that, Chairman Emeritus SCHULZE RICHARD M went on to Sale 250,000 shares at $82.90 each on Jun 27. An amount of $20,725,355 was transacted.
Valuation Metrics
Best Buy Co. Inc. (BBY) has a trailing price-to-earnings (P/E) ratio of 13.36. The stock’s beta is 1.55. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.39, the price-to-book (PB) ratio at 6.20, and the price-to-cash flow ratio at 15.07.
The company has a payout ratio of 59.30%. The company’s most recent quarterly dividend payment was $0.92 a share, without any change from last year. Its latest increase dividend $0.04 reported on Thursday March 2 2023.
Financial Health
The quick ratio of Best Buy Co. Inc. for the three months ended April 29 was 0.30, and the current ratio was 1.00, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.41 and a total debt to equity ratio of 0.42 for the quarter ending April 29. Best Buy Co. Inc.’s EBITDA margin for the year ending April 29 is 6.15%, while its operating margin for the same period stands at 3.60%. Its gross profit as reported stood at $9.91 billion compared to revenue of $46.3 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Best Buy Co. Inc.’s return on assets was 8.40%.
Earnings Surprise
For the three-month period that ended April 29, Best Buy Co. Inc. had $1.16 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $244.0 million in the quarter, while revenues of $1.53 billion were shrunk -39.75%. The analyst consensus anticipated Best Buy Co. Inc.’s latest quarter earnings to come in at $1.11 per share, but it turned out to be $1.15, a 3.60% surprise. For the quarter, EBITDA amounted to $548.0 million. Shareholders own equity worth $218.21 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Best Buy Co. Inc. (BBY) price momentum. RSI 9-day as of the close on 09 August was 29.98%, suggesting the stock is oversold, with historical volatility in this time frame at 11.50%.
As of today, BBY’s price is $79.88 -2.70% or -$2.19 from its 5-day moving average. BBY is currently trading -2.50% lower than its 20-day SMA and +2.54% higher than its 100-day SMA. However, the stock’s current price level is +6.35% above the SMA50 and +25.78% above the SMA200.
The stochastic %K and %D were 16.15% and 14.49%, respectively, and the average true range (ATR) was 1.59. With the 14-day stochastic at 17.64% and the average true range at 1.63, the RSI (14) stands at 39.53%. The stock has reached -1.62 on the 9-day MACD Oscillator while the 14-day reading was at -2.69.
Analyst Ratings
Telsey Advisory Group downgraded Best Buy Co. Inc. (NYSE: BBY) to a a Market perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Best Buy Co. Inc. (BBY) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell BBY, while 22 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 4 others rate it as a “buy”.
What is BBY’s price target for the next 12 months?
Analysts predict a range of price targets between $62.00 and $110.00, with a median target of $77.00. Taking a look at these predictions, the average price target given by analysts for Best Buy Co. Inc. (BBY) stock is $80.10.
