Citigroup Lowers Price Target for Best Buy (NYSE:BBY) to $101.00

On November 30, 2024, Citigroup announced a reduction in the price target for Best Buy Co., Inc. (NYSE: BBY), lowering it from $109.00 to $101.00. Despite this adjustment, Citigroup maintains a buy rating on the stock of the well-known technology retailer.

Several other analysts have also provided updates on Best Buy. Melius Research initiated coverage on the company on September 23, setting a hold rating with a price target of $100.00. Loop Capital further adjusted their forecast, decreasing the price target from $110.00 to $100.00 while keeping a buy rating. Similarly, the Telsey Advisory Group revised their price target from $115.00 down to $110.00, also maintaining an outperform rating. On the other hand, Truist Financial raised its price objective from $86.00 to $107.00 but affirmed a hold rating. DA Davidson has a more optimistic view, reaffirming a buy rating with a higher price target of $117.00.

Currently, analysts have given Best Buy a mix of ratings: one sell, eight hold, ten buy, and one strong buy. According to MarketBeat data, the average recommendation for the company is categorized as a "Moderate Buy," with an average price target close to $101.06.

Recent Performance of Best Buy

As of the latest trading session, shares of Best Buy opened at $90.05. The stock has seen fluctuations with a 50-day moving average of $93.81 and a 200-day moving average of $89.17. Over the last 52 weeks, the company’s stock price has ranged from a low of $69.29 to a high of $103.71. Best Buy currently holds a market capitalization of approximately $19.34 billion, a price-to-earnings ratio of 15.39, and a price-to-earnings-growth ratio of 2.34. The company reports a beta of 1.47, indicating higher volatility compared to the overall market. Key financial ratios indicate a current ratio of 1.00, a quick ratio of 0.34, and a debt-to-equity ratio of 0.37.

Earnings Report Highlights

Best Buy's most recent quarterly earnings report, released on August 29, highlighted that the company posted earnings per share (EPS) of $1.34, exceeding analysts' expectations of $1.16 by $0.18. Revenue for the quarter was reported at $9.29 billion, which slightly surpassed the estimated $9.23 billion. However, this represents a 3.1% decline in revenue compared to the same quarter the previous year. In the prior year's quarter, Best Buy had an EPS of $1.22. Current analyst forecasts suggest that Best Buy might report an EPS of 6.19 for the ongoing fiscal year.

Dividend Announcement

Best Buy has recently announced a quarterly dividend payment that will take place on January 7, 2025. Shareholders listed on the record as of December 17, 2024, will receive a dividend payment of $0.94 per share. This leads to an annualized dividend of $3.76 and represents a dividend yield of 4.18%. The ex-dividend date is also set for December 17, 2024. Currently, the company's dividend payout ratio stands at 64.27%.

Institutional Investor Activity

In recent months, several institutional investors have adjusted their positions in Best Buy. Richardson Financial Services Inc. increased its holdings by an impressive 190.9% during the second quarter, now owning 320 shares valued at approximately $27,000. Innealta Capital LLC and Harbor Capital Advisors Inc. also acquired new stakes in the company, valued at $35,000 and $40,000, respectively. LRI Investments LLC has shown significant growth by boosting their holdings by 632.1% in the third quarter, while Whittier Trust Company increased their stake by 53.3% during the same period. Overall, institutional investors now hold about 80.96% of Best Buy's shares.

About Best Buy Co., Inc.

Best Buy Co., Inc. engages in the retail and distribution of technology products across the United States, Canada, and internationally. The company’s stores offer a wide variety of products, including computing devices, mobile phones, networking products, and consumer electronics such as home entertainment systems and smart home devices.

Citigroup, BestBuy, Stock