Telsey Advisory Group has recently reiterated Best Buy Co Inc (BBY) stock to Outperform rating, as announced on August 30, 2024, according to Finviz. Earlier, on June 17, 2024, UBS had raised the stock from a Neutral to Buy, setting a price target of $106 for BBY stock. Citigroup also raised Buy rating with a price target of $100. Additionally, Telsey Advisory Group reduced Market Perform rating on May 23, 2024, with a target price of $95. Jefferies analysts, in their report published on April 8, 2024, also reiterated Buy rating and set a price target of $94 for Best Buy Co Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Best Buy Co Inc (BBY) Stock Trading Recap
On Tuesday, Best Buy Co Inc (BBY) stock saw a modest uptick, ending the day at $93.77 which represents a slight increase of $0.60 or 0.64% from the prior close of $93.17. The stock opened at $92.8 and touched a low of $91.86 during the day, reaching a high of $93.87. The volume of shares traded was 1.97 million falling short of the average volume of 2.72 million.
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BBY Stock Performance and Moving Averages
In recent trading, Best Buy Co Inc (BBY) stock price has shown some volatility, fluctuating -3.89% over the last five trades and -4.18% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 24.96%, and it has gained 6.88% in the previous three months. Currently, BBY is trading at -4.54%, -1.79%, and 12.52% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, BBY, a Consumer Cyclical sector stock, is trading -9.58% below its 52-week high but remains 50.51% above its 52-week low. The Average True Range (ATR) (14 days) of 2.21 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Best Buy Co Inc’s Profitability and Valuation Ratios
Best Buy Co Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 4.20% and a profit margin of 2.96%, with a gross margin of 24.96%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Best Buy Co Inc’s market capitalization stands at $20.13 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 16.17, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 13.69. Additionally, the Price-to-Sales Ratio is 0.47, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 6.49, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 7.96% of Best Buy Co Inc (BBY)’s shares, while financial institutions hold 84.59%.
Notable insider trades include Barry Corie S, CEO at Best Buy Co Inc (BBY), who sold 79829 shares on Sep 11 ’24, at $96.66 each, totaling $7.72 million. On Aug 30 ’24, Scarlett Kathleen, SEVP, HR, Corp Affair & Canada, sold 40169 shares for $99.6 each, amounting to $4.00 million. Additionally, on Aug 29 ’24, Bonfig Jason J sold 25000 shares at $101 each, generating $2.53 million.
