Healthy Upside Potential: Best Buy Co. Inc. (BBY)

Best Buy Co. Inc. (NYSE: BBY) stock jumped 1.63% on Thursday to $73.45 against a previous-day closing price of $72.27. With 1.99 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.25 million shares. During the session, the Specialty Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $73.98 whereas the lowest price it dropped to was $72.82. 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 $82.00. With its current market cap of 15.86 billion, BBY has annualized dividend of $3.68 while the current yield stands at 5.01%. Beta for the stock currently stands at 1.56.

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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 up-trending over the past week, with a rise of 1.07%, but this was down by -6.41% over a month. Three-month performance dropped to -4.16% while six-month performance fell -2.78%. The stock lost -0.33% in the past year, while it has lost -8.43% so far this year. A look at the trailing 12-month EPS for BBY yields 5.81 with Next year EPS estimates of 6.75. For the next quarter, that number is 1.20. This implies an EPS growth rate of -36.10% for this year and 8.49% for next year. EPS is expected to grow by 3.40% 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, 218.60 million BBY shares are outstanding with a float of 193.45 million shares on hand for trading. On Aug 30, 2023, short shares totaled 10.04 million, which was 4.61% higher than short shares on Jul 30, 2023. In addition to Ms. Corie Sue Barry as the firm’s CEO & Director, Mr. Matthew M. Bilunas serves as its Sr. Exec. VP & Enterprise Strategy & CFO.

Institutional Ownership:

Through their ownership of 82.36% of BBY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.93% of BBY, in contrast to 33.15% held by mutual funds. Shares owned by individuals account for 13.82%. As the largest shareholder in BBY with 10.60% of the stake, The Vanguard Group, Inc. holds 23,121,513 shares worth 23,121,513. A second-largest stockholder of BBY, BlackRock Fund Advisors, holds 12,350,232 shares, controlling over 5.66% of the firm’s shares. JPMorgan Investment Management, I is the third largest shareholder in BBY, holding 10,167,710 shares or 4.66% stake. With a 2.80% stake in BBY, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 6,116,392 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.13% of BBY stock, is the second-largest Mutual Fund holder. It holds 4,659,873 shares valued at 387.0 million. Vanguard Mid Cap Index Fund holds 2.09% of the stake in BBY, owning 4,554,332 shares worth 378.24 million.

Analysts Ratings:

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 $91.00 and a low target of $70.00, the average target price over the next 12 months is $81.36. Based on these targets, BBY could surge 23.89% to reach the target high and fall by -4.7% to reach the target low. Reaching the average price target will result in a growth of 10.77% 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 3 Buys and 7 Sells. In these transactions, 37,437 shares were bought while 386,284 shares were sold. The number of buy transactions has increased to 34 while that of sell transactions has risen to 36 over the past year. The total number of shares bought during that period was 476,718 while 1,094,898 shares were sold.

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