Investors Sell Shares of Best Buy (BBY) on Strength After Insider Selling
Investors sold shares of Best Buy Co Inc (NYSE:BBY) on strength during trading on Thursday after an insider sold shares in the company. $40.70 million flowed into the stock on the tick-up and $85.45 million flowed out of the stock on the tick-down, for a money net flow of $44.75 million out of the stock. Of all stocks tracked, Best Buy had the 32nd highest net out-flow for the day. Best Buy traded up $0.50 for the day and closed at $68.85Specifically, major shareholder Richard M. Schulze sold 25,443 shares of Best Buy stock in a transaction on Monday, March 4th. The shares were sold at an average price of $68.22, for a total transaction of $1,735,721.46. Following the completion of the transaction, the insider now owns 1,732,500 shares of the company’s stock, valued at $118,191,150. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Mathew Watson sold 380 shares of Best Buy stock in a transaction on Wednesday, March 13th. The stock was sold at an average price of $68.79, for a total transaction of $26,140.20. Following the transaction, the senior vice president now directly owns 20,206 shares of the company’s stock, valued at approximately $1,389,970.74. The disclosure for this sale can be found here. Insiders have sold 1,001,380 shares of company stock valued at $68,772,378 in the last three months. 0.75% of the stock is owned by insiders.
A number of equities research analysts have commented on the stock. ValuEngine upgraded shares of Best Buy from a “sell” rating to a “hold” rating in a report on Monday. Wolfe Research upgraded shares of Best Buy from a “market perform” rating to a “buy” rating in a report on Wednesday, March 6th. Citigroup raised their price target on shares of Best Buy from $72.00 to $77.00 and gave the stock a “neutral” rating in a report on Friday, March 1st. Credit Suisse Group upgraded shares of Best Buy from a “neutral” rating to a “buy” rating and raised their price target for the stock from $70.00 to $78.00 in a report on Thursday, February 28th. Finally, Wells Fargo & Co upgraded shares of Best Buy to a “buy” rating in a report on Thursday, February 28th. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and eight have assigned a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $76.33.
The firm has a market cap of $18.52 billion, a PE ratio of 12.94, a PEG ratio of 1.11 and a beta of 0.94. The company has a current ratio of 1.18, a quick ratio of 0.46 and a debt-to-equity ratio of 0.40.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 10th. Investors of record on Wednesday, March 20th will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Tuesday, March 19th. This is a boost from Best Buy’s previous quarterly dividend of $0.45. This represents a $2.00 annualized dividend and a yield of 2.90%. Best Buy’s payout ratio is 33.83%.
Best Buy declared that its board has authorized a stock repurchase program on Wednesday, February 27th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the technology retailer to purchase up to 18.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.
A number of institutional investors have recently added to or reduced their stakes in the stock. FMR LLC boosted its holdings in Best Buy by 3.6% during the fourth quarter. FMR LLC now owns 23,545,963 shares of the technology retailer’s stock worth $1,246,994,000 after purchasing an additional 816,394 shares during the last quarter. Bank of New York Mellon Corp raised its position in Best Buy by 10.0% in the third quarter. Bank of New York Mellon Corp now owns 6,519,666 shares of the technology retailer’s stock worth $517,400,000 after acquiring an additional 591,086 shares during the period. Northern Trust Corp raised its position in Best Buy by 13.3% in the fourth quarter. Northern Trust Corp now owns 4,061,338 shares of the technology retailer’s stock worth $215,088,000 after acquiring an additional 478,177 shares during the period. OppenheimerFunds Inc. raised its position in Best Buy by 10.1% in the third quarter. OppenheimerFunds Inc. now owns 3,851,524 shares of the technology retailer’s stock worth $305,657,000 after acquiring an additional 353,522 shares during the period. Finally, LSV Asset Management raised its position in Best Buy by 7.8% in the fourth quarter. LSV Asset Management now owns 3,481,562 shares of the technology retailer’s stock worth $184,383,000 after acquiring an additional 250,769 shares during the period. Institutional investors and hedge funds own 82.76% of the company’s stock.
Best Buy Company Profile (NYSE:BBY)
Best Buy Co, Inc operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide consumer electronics, including digital imaging, health and fitness, home automation, home theater, and portable audio products; computing and mobile phones, such as computing and peripherals, networking products, tablets, smart watches, and e-readers, as well as mobile phones comprising related mobile network carrier commissions; and entertainment products, including drones, movies, music, and technology toys, as well as gaming hardware and software, and virtual reality and other software products.
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