Brighton Jones LLC significantly increased its holdings in Best Buy Co., Inc. (NYSE: BBY) by an impressive 135.4% during the third quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission, Brighton Jones now owns 26,714 shares after purchasing an additional 15,366 shares, valued at approximately $2.02 million.
The activity surrounding Best Buy has garnered attention, as other institutional investors have also adjusted their positions in the company. Norges Bank acquired a new stake in Best Buy during the second quarter, valued at about $171.85 million. AQR Capital Management LLC raised its position by 39.5%, now owning 3,501,617 shares worth $235.06 million. Invesco Ltd. increased its stake by 15.8%, bringing its total to 4,548,650 shares valued at $305.35 million. Moreover, Worldquant Millennium Advisors LLC expanded its position by a staggering 855.5%, now holding 686,644 shares worth $46.09 million. State Street Corp also grew its holdings by 3.8%, owning 13,631,429 shares valued at $927.75 million. Notably, institutional investors now hold 80.96% of Best Buy’s stock.
In addition to institutional shifts, insider transactions have been noteworthy. On October 30, 2023, Best Buy Chairman Richard M. Schulze sold 74,553 shares at an average price of $84.31, totaling $6.29 million. Post-sale, Schulze retains ownership of 11,451,911 shares, valued at approximately $965.51 million. Over the last 90 days, insiders have sold 1,534,993 shares, amounting to $126.63 million, with insiders currently owning 0.59% of the company’s stock.
Best Buy’s Stock Performance and Future Outlook
As of the latest trading session, Best Buy’s stock opened at $71.21. The company maintains a current ratio of 1.05, a quick ratio of 0.26, and a debt-to-equity ratio of 0.44. Over the past year, the stock has fluctuated between a low of $54.99 and a high of $91.68. Currently, the stock boasts a market capitalization of $14.92 billion and a P/E ratio of 23.58.
Best Buy reported its quarterly earnings on November 25, 2023, achieving earnings per share (EPS) of $1.40, surpassing analysts’ consensus estimates of $1.31 by $0.09. The company’s revenue for the quarter reached $9.67 billion, exceeding expectations of $9.57 billion, and marking a 2.4% increase compared to the previous year. Best Buy has set its fiscal year 2026 guidance between $6.25 and $6.35 EPS, with analysts projecting an EPS of $6.18 for the current fiscal year.
Dividend Announcement and Analyst Ratings
Best Buy recently declared a quarterly dividend, scheduled for payment on January 6, 2024. Shareholders of record on December 16, 2023 will receive a dividend of $0.95 per share, which translates to an annualized dividend of $3.80 and a yield of 5.3%. The ex-dividend date is also set for December 16, 2023. The company’s dividend payout ratio currently stands at 125.83%.
Wall Street analysts have varied opinions on Best Buy’s stock. Piper Sandler raised its target price from $75.00 to $76.00, maintaining a “neutral” rating. Loop Capital increased its target from $80.00 to $85.00, giving a “buy” rating. Conversely, Evercore ISI lowered its price objective from $85.00 to $80.00 while maintaining an “in-line” rating. As it stands, nine research analysts have rated Best Buy as a “buy,” thirteen have assigned a “hold” rating, and one has given it a “sell” rating, resulting in an average rating of “hold” and a consensus price target of $84.11
