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Barclays Initiates Coverage of Best Buy With Equal Weight Recommendation
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On February 8, 2023, Barclays initiated coverage of Best Buy with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 0.90% Upside
As of February 11, 2023, the average one-year price target for Best Buy is $85.73. The forecasts range from a low of $69.69 to a high of $115.50. The average price target represents an increase of 0.90% from its latest reported closing price of $84.96.
The projected annual revenue for Best Buy is $46,781MM, a decrease of 2.39%. The projected annual EPS is $6.68, a decrease of 1.40%.
Best Buy Declares $0.88 Dividend
On November 22, 2022 the company declared a regular quarterly dividend of $0.88 per share ($3.52 annualized). Shareholders of record as of December 12, 2022 received the payment on January 3, 2023. Previously, the company paid $0.88 per share.
At the current share price of $84.96 / share, the stock’s dividend yield is 4.14%. Looking back five years and taking a sample every week, the average dividend yield has been 2.90%, the lowest has been 1.80%, and the highest has been 5.56%. The standard deviation of yields is 0.86 (n=237).
The current dividend yield is 1.46 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.50. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.76%, demonstrating that it has increased its dividend over time.
What are large shareholders doing?
Jpmorgan Chase & holds 11,112K shares representing 5.02% ownership of the company. In it’s prior filing, the firm reported owning 11,812K shares, representing a decrease of 6.31%. The firm decreased its portfolio allocation in BBY by 5.78% over the last quarter.
Price T Rowe Associates holds 6,946K shares representing 3.14% ownership of the company. In it’s prior filing, the firm reported owning 4,846K shares, representing an increase of 30.23%. The firm increased its portfolio allocation in BBY by 80.57% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 6,035K shares representing 2.73% ownership of the company. In it’s prior filing, the firm reported owning 5,965K shares, representing an increase of 1.16%. The firm increased its portfolio allocation in BBY by 2.47% over the last quarter.
VIMSX – Vanguard Mid-Cap Index Fund Investor Shares holds 4,678K shares representing 2.11% ownership of the company. In it’s prior filing, the firm reported owning 4,661K shares, representing an increase of 0.37%. The firm increased its portfolio allocation in BBY by 1.96% over the last quarter.
VFINX – Vanguard 500 Index Fund Investor Shares holds 4,543K shares representing 2.05% ownership of the company. In it’s prior filing, the firm reported owning 4,482K shares, representing an increase of 1.33%. The firm increased its portfolio allocation in BBY by 1.83% over the last quarter.
What is the Fund Sentiment?
There are 1637 funds or institutions reporting positions in Best Buy. This is an increase of 11 owner(s) or 0.68% in the last quarter. Average portfolio weight of all funds dedicated to BBY is 0.20%, an increase of 1.87%. Total shares owned by institutions decreased in the last three months by 5.87% to 194,825K shares. The put/call ratio of BBY is 1.77, indicating a bearish outlook.
Best Buy Background Information
(This description is provided by the company.)
Best Buy is a leading provider of technology products, services and solutions. The company offers expert service at an unbeatable price more than 1.5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with Geek Squad agents or use BestBuy.com or the Best Buy app. The company has operations in the U.S and Canada, where more than 70 percent of the population lives within 15 minutes of a Best Buy store, as well as in Mexico where Best Buy has a physical and online presence.
This article originally appeared on Fintel
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