Best Buy (NYSE:BBY) Shares Up 1.2% After Dividend Announcement

Best Buy Co., Inc. (NYSE:BBY) shot up 1.2% on Wednesday following a dividend announcement from the company. The company traded as high as $89.86 and last traded at $89.58. 986,052 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 3,051,501 shares. The stock had previously closed at $88.48.

The newly announced dividend which will be paid on Tuesday, January 7th. Stockholders of record on Tuesday, December 17th will be given a $0.94 dividend. The ex-dividend date of this dividend is Tuesday, December 17th. This represents a $3.76 annualized dividend and a dividend yield of 4.26%. Best Buy’s dividend payout ratio (DPR) is presently 64.83%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on BBY. Loop Capital decreased their target price on Best Buy from $110.00 to $100.00 and set a “buy” rating for the company in a research report on Wednesday. The Goldman Sachs Group lifted their price objective on Best Buy from $95.00 to $116.00 and gave the company a “buy” rating in a research report on Tuesday, September 3rd. Evercore ISI lifted their price objective on Best Buy from $90.00 to $94.00 and gave the company an “in-line” rating in a research report on Friday, August 30th. Telsey Advisory Group reduced their price objective on Best Buy from $115.00 to $110.00 and set an “outperform” rating for the company in a research report on Tuesday. Finally, Piper Sandler reissued an “overweight” rating and set a $114.00 price objective (up previously from $100.00) on shares of Best Buy in a research report on Friday, August 30th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $100.82.

Best Buy Price Performance

The company has a market cap of $18.93 billion, a price-to-earnings ratio of 15.20, a price-to-earnings-growth ratio of 2.44 and a beta of 1.47. The company has a current ratio of 1.01, a quick ratio of 0.34 and a debt-to-equity ratio of 0.37. The company has a fifty day moving average price of $93.96 and a two-hundred day moving average price of $89.06.

Best Buy (NYSE:BBY) last released its quarterly earnings data on Thursday, August 29th. The technology retailer reported $1.34 EPS for the quarter, topping analysts’ consensus estimates of $1.16 by $0.18. The company had revenue of $9.29 billion during the quarter, compared to the consensus estimate of $9.23 billion. Best Buy had a net margin of 2.96% and a return on equity of 47.19%. The firm’s revenue for the quarter was down 3.1% compared to the same quarter last year. During the same period last year, the firm earned $1.22 EPS. As a group, equities research analysts anticipate that Best Buy Co., Inc. will post 6.28 EPS for the current fiscal year.

Hedge Funds Weigh In On Best Buy

Hedge funds and other institutional investors have recently modified their holdings of the stock. Richardson Financial Services Inc. lifted its position in shares of Best Buy by 190.9% during the 2nd quarter. Richardson Financial Services Inc. now owns 320 shares of the technology retailer’s stock worth $27,000 after buying an additional 210 shares during the period. Harbor Capital Advisors Inc. acquired a new stake in shares of Best Buy during the 3rd quarter worth about $40,000. LRI Investments LLC increased its position in shares of Best Buy by 632.1% during the 3rd quarter. LRI Investments LLC now owns 388 shares of the technology retailer’s stock worth $40,000 after purchasing an additional 335 shares in the last quarter. Innealta Capital LLC acquired a new stake in shares of Best Buy during the 2nd quarter worth about $35,000. Finally, Brooklyn Investment Group acquired a new stake in shares of Best Buy during the 3rd quarter worth about $44,000. Institutional investors own 80.96% of the company’s stock.

About Best Buy

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.