Brighton Jones LLC significantly increased its stake in Best Buy Co., Inc. (NYSE:BBY) during the third quarter of 2023, expanding its holdings by 135.4%. According to the fund’s latest 13F filing with the Securities and Exchange Commission, Brighton Jones now owns 26,714 shares of the technology retailer after purchasing an additional 15,366 shares in that period. The total value of Brighton Jones’s investment in Best Buy reached approximately $2.02 million as of the filing date.
This move reflects a broader trend among institutional investors, many of whom have also adjusted their positions in Best Buy. For instance, Norges Bank acquired a new stake valued at around $171.85 million during the second quarter. AQR Capital Management LLC increased its holdings by 39.5%, now owning 3,501,617 shares worth about $235.06 million after adding 991,141 shares during the same period. Meanwhile, Invesco Ltd. raised its position by 15.8% and now possesses 4,548,650 shares valued at approximately $305.35 million.
Another notable investor, Worldquant Millennium Advisors LLC, grew its stake by an impressive 855.5%, bringing its total to 686,644 shares worth $46.09 million. Finally, State Street Corp increased its position by 3.8%, now controlling 13,631,429 shares valued at around $927.75 million. Overall, institutional investors own 80.96% of Best Buy’s stock.
Insider Transactions and Recent Sales
In related news, Best Buy’s Chairman, Richard M. Schulze, sold 74,553 shares of the company’s stock on October 30, 2023. The shares were sold at an average price of $84.31, resulting in a total transaction value of approximately $6.29 million. Following this sale, Schulze retains ownership of 11,451,911 shares, valued at nearly $965.51 million. This transaction reflects a 0.65% decrease in his position. In the last 90 days, insiders have sold a total of 1,534,993 shares valued at $126.63 million. Currently, insiders own 0.59% of the company’s stock.
Stock Performance and Earnings Report
On the stock market, Best Buy shares opened at $71.21 on Tuesday. The company reported a current ratio of 1.05, a quick ratio of 0.26, and a debt-to-equity ratio of 0.44. The stock has experienced a 12-month low of $54.99 and a high of $91.68. Its market capitalization stands at approximately $14.92 billion, with a price-to-earnings (P/E) ratio of 23.58 and a beta of 1.37.
Best Buy’s latest quarterly earnings report, released on November 25, 2023, indicated earnings per share (EPS) of $1.40, surpassing analysts’ expectations of $1.31 by $0.09. The company achieved a return on equity of 50.02% and a net margin of 1.54%, with quarterly revenue reaching $9.67 billion, exceeding forecasts of $9.57 billion. Year-over-year, revenue increased by 2.4%. Best Buy has projected a fiscal year 2026 EPS guidance of $6.250–$6.350.
Dividend Announcement and Analyst Ratings
The company also announced a quarterly dividend of $0.95 per share, scheduled for payment on January 6, 2024. Investors of record by December 16, 2023, will receive this dividend, translating to an annualized yield of 5.3%. Best Buy’s current dividend payout ratio is 125.83%.
Several equities analysts have recently evaluated Best Buy’s stock. Piper Sandler raised its target price from $75.00 to $76.00, assigning a “neutral” rating. Loop Capital increased its target from $80.00 to $85.00 and rated the stock as a “buy.” Meanwhile, Wells Fargo & Company raised its target from $67.00 to $75.00, also giving it a “buy” rating. Currently, the consensus among analysts shows nine “buy” ratings, thirteen “hold” ratings, and one “sell” rating. MarketBeat reports an average rating of “hold” with a price target of $84.11.
Best Buy Co., Inc. operates as a leading consumer electronics retailer in North America, offering a wide range of products and services, including computers, televisions, smart-home devices, and installation services. The company utilizes a blend of large-format stores, smaller specialty locations, and an online platform to cater to its customer base.
