Best Buy (NYSE:BBY) Shares Gap Down – Time to Sell?

Best Buy Co., Inc. (NYSE:BBY)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $86.74, but opened at $79.44. Best Buy shares last traded at $75.12, with a volume of 3,581,562 shares trading hands.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Wells Fargo & Company reaffirmed an “equal weight” rating on shares of Best Buy in a research note on Friday. StockNews.com lowered Best Buy from a “buy” rating to a “hold” rating in a research report on Friday, November 15th. UBS Group reissued a “buy” rating on shares of Best Buy in a research report on Friday. Barclays decreased their price target on shares of Best Buy from $95.00 to $89.00 and set an “equal weight” rating for the company in a research note on Thursday, January 9th. Finally, Morgan Stanley reiterated an “equal weight” rating on shares of Best Buy in a report on Friday. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, ten have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, Best Buy has a consensus rating of “Moderate Buy” and a consensus price target of $101.44.

Best Buy Stock Down 11.8 %

The stock has a 50-day moving average of $86.43 and a 200 day moving average of $90.69. The company has a market capitalization of $16.36 billion, a PE ratio of 13.21, a P/E/G ratio of 2.10 and a beta of 1.43. The company has a quick ratio of 0.22, a current ratio of 1.00 and a debt-to-equity ratio of 0.37.

Best Buy (NYSE:BBY) last announced its earnings results on Tuesday, March 4th. The technology retailer reported $2.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.40 by $0.18. Best Buy had a return on equity of 45.93% and a net margin of 3.01%. During the same quarter last year, the firm posted $2.72 earnings per share. Sell-side analysts anticipate that Best Buy Co., Inc. will post 6.18 EPS for the current year.

Best Buy Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Tuesday, March 25th will be given a $0.95 dividend. This is a positive change from Best Buy’s previous quarterly dividend of $0.94. This represents a $3.80 annualized dividend and a yield of 4.96%. Best Buy’s payout ratio is currently 64.27%.

Insider Activity

In related news, CFO Matthew M. Bilunas sold 69,166 shares of the company’s stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $87.46, for a total value of $6,049,258.36. Following the transaction, the chief financial officer now owns 92,070 shares in the company, valued at approximately $8,052,442.20. This represents a 42.90 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.59% of the company’s stock.

Institutional Trading of Best Buy

A number of large investors have recently bought and sold shares of the company. Rakuten Securities Inc. increased its holdings in Best Buy by 971.9% in the 4th quarter. Rakuten Securities Inc. now owns 343 shares of the technology retailer’s stock worth $29,000 after acquiring an additional 311 shares during the last quarter. Vermillion Wealth Management Inc. bought a new position in Best Buy during the fourth quarter worth about $31,000. Golden State Wealth Management LLC purchased a new position in shares of Best Buy in the fourth quarter worth about $32,000. Atlas Capital Advisors Inc. raised its position in shares of Best Buy by 186.9% in the fourth quarter. Atlas Capital Advisors Inc. now owns 373 shares of the technology retailer’s stock valued at $32,000 after purchasing an additional 243 shares during the period. Finally, Ancora Advisors LLC lifted its stake in shares of Best Buy by 18,700.0% during the 4th quarter. Ancora Advisors LLC now owns 376 shares of the technology retailer’s stock valued at $32,000 after buying an additional 374 shares in the last quarter. 80.96% of the stock is owned by hedge funds and other institutional investors.

Best Buy Company Profile

Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone 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 products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.