Best Buy Co. Inc. (NYSE: BBY) stock jumped 3.08% on Thursday to $71.28 against a previous-day closing price of $69.15. With 5.52 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.4 million shares. During the session, the Specialty Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $72.00 whereas the lowest price it dropped to was $69.30. The 52-week range on BBY shows that it touched its highest point at $93.32 and its lowest point at $60.78 during that stretch. It currently has a 1-year price target of $81.87. With its current market cap of 16.14 billion, BBY has annualized dividend of $3.68 while the current yield stands at 5.16%. Beta for the stock currently stands at 1.53.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BBY was down-trending over the past week, with a drop of -2.41%, but this was down by -0.32% over a month. Three-month performance dropped to -14.96% while six-month performance fell -10.77%. The stock lost -2.98% in the past year, while it has lost -11.13% so far this year. A look at the trailing 12-month EPS for BBY yields 6.30 with Next year EPS estimates of 7.00. For the next quarter, that number is 1.21. This implies an EPS growth rate of -36.10% for this year and 13.33% for next year. EPS is expected to decline by -7.54% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 8.50%.
Float and Shares Shorts:
At present, 221.50 million BBY shares are outstanding with a float of 200.83 million shares on hand for trading. On Apr 27, 2023, short shares totaled 11.64 million, which was 5.32% higher than short shares on Mar 30, 2023. In addition to BBY as the firm’s Best Buy Co., Inc., BMY serves as its Bristol-Myers Squibb Company.
Through their ownership of 82.15% of BBY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.61% of BBY, in contrast to 34.85% held by mutual funds. Shares owned by individuals account for 13.96%. As the largest shareholder in BBY with 10.76% of the stake, The Vanguard Group, Inc. holds 23,451,486 shares worth 23,451,486. A second-largest stockholder of BBY, BlackRock Fund Advisors, holds 11,937,282 shares, controlling over 5.48% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in BBY, holding 10,152,129 shares or 4.66% stake. With a 2.83% stake in BBY, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 6,176,260 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.13% of BBY stock, is the second-largest Mutual Fund holder. It holds 4,649,126 shares valued at 346.45 million. Vanguard 500 Index Fund holds 2.12% of the stake in BBY, owning 4,621,932 shares worth 344.43 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jan 27, 2023, BBY reported revenue of $10.65B and operating income of $463.00M. The EBITDA in the recently reported quarter was $687.00M and diluted EPS was $1.49.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BBY since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With BBY analysts setting a high price target of $110.00 and a low target of $62.00, the average target price over the next 12 months is $80.29. Based on these targets, BBY could surge 54.32% to reach the target high and fall by -13.02% to reach the target low. Reaching the average price target will result in a growth of 12.64% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded BBY stock several times over the past three months with 9 Buys and 11 Sells. In these transactions, 152,037 shares were bought while 90,580 shares were sold. The number of buy transactions has increased to 45 while that of sell transactions has risen to 37 over the past year. The total number of shares bought during that period was 517,512 while 757,537 shares were sold.