Wedbush Issues Pessimistic Outlook for Best Buy Earnings

Best Buy Co., Inc. (NYSE:BBY - Free Report) - Research analysts at Wedbush cut their Q2 2026 earnings per share estimates for Best Buy in a research note issued on Tuesday, March 4th. Wedbush analyst S. Basham now anticipates that the technology retailer will earn $1.22 per share for the quarter, down from their prior estimate of $1.28. Wedbush currently has a "Neutral" rating and a $90.00 target price on the stock. The consensus estimate for Best Buy's current full-year earnings is $6.18 per share. Wedbush also issued estimates for Best Buy's Q3 2026 earnings at $1.20 EPS and Q4 2026 earnings at $2.43 EPS.

Other research analysts also recently issued reports about the company. Guggenheim lowered their price target on Best Buy from $105.00 to $90.00 and set a "buy" rating on the stock in a report on Wednesday. StockNews.com downgraded Best Buy from a "buy" rating to a "hold" rating in a report on Friday, November 15th. Jefferies Financial Group dropped their target price on Best Buy from $106.00 to $92.00 and set a "buy" rating on the stock in a research report on Tuesday, March 4th. Piper Sandler cut their price target on Best Buy from $102.00 to $92.00 and set an "overweight" rating for the company in a research note on Wednesday. Finally, Citigroup lowered their price objective on shares of Best Buy from $105.00 to $93.00 and set a "buy" rating on the stock in a research note on Wednesday. One analyst has rated the stock with a sell rating, nine have assigned a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $93.50.

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Best Buy Stock Performance

Shares of NYSE:BBY traded up $1.06 during midday trading on Thursday, reaching $79.66. 3,116,016 shares of the company's stock traded hands, compared to its average volume of 2,963,150. The company has a market cap of $17.03 billion, a price-to-earnings ratio of 13.62, a P/E/G ratio of 2.10 and a beta of 1.43. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.22 and a current ratio of 1.00. Best Buy has a one year low of $69.29 and a one year high of $103.71. The stock has a 50 day moving average of $85.58 and a 200 day moving average of $90.46.

Best Buy (NYSE:BBY - Get Free Report) last announced its quarterly earnings results on Tuesday, March 4th. The technology retailer reported $2.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.40 by $0.18. The firm had revenue of $13.95 billion for the quarter, compared to the consensus estimate of $13.69 billion. Best Buy had a return on equity of 45.93% and a net margin of 3.01%. During the same period in the prior year, the company posted $2.72 earnings per share.

Institutional Trading of Best Buy

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Siemens Fonds Invest GmbH boosted its position in shares of Best Buy by 254.9% during the fourth quarter. Siemens Fonds Invest GmbH now owns 15,349 shares of the technology retailer's stock worth $1,317,000 after acquiring an additional 11,024 shares during the last quarter. GHE LLC boosted its position in shares of Best Buy by 4.3% during the fourth quarter. GHE LLC now owns 19,163 shares of the technology retailer's stock worth $1,644,000 after acquiring an additional 788 shares during the last quarter. Total Wealth Planning & Management Inc. bought a new position in shares of Best Buy during the fourth quarter worth $731,000. Universal Beteiligungs und Servicegesellschaft mbH bought a new position in shares of Best Buy during the fourth quarter worth $29,090,000. Finally, Brooklyn FI LLC bought a new position in shares of Best Buy during the fourth quarter worth $315,000. 80.96% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Best Buy

In other news, CFO Matthew M. Bilunas sold 69,166 shares of the stock in a transaction on Wednesday, December 11th. The shares were sold at an average price of $87.46, for a total value of $6,049,258.36. Following the completion of the sale, the chief financial officer now directly owns 92,070 shares of the company's stock, valued at $8,052,442.20. This represents a 42.90 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 0.59% of the company's stock.

Best Buy Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 15th. Stockholders of record on Tuesday, March 25th will be paid a $0.95 dividend. The ex-dividend date is Tuesday, March 25th. This is a boost from Best Buy's previous quarterly dividend of $0.94. This represents a $3.80 dividend on an annualized basis and a dividend yield of 4.77%. Best Buy's dividend payout ratio is 88.99%.

Best Buy Company Profile

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.