On May 25, Form 4 was filed with the SEC indicating that 250,000 shares were bought up by the Best Buy founder. Meanwhile, in its latest earnings report on the same date, the company showed $10.65 billion in revenue, which represented a year-on-year (YoY) decrease of 8.5%; however, it still beat expectations by $220 million. Similarly, earnings per share (EPS) was $1.57, beating estimates by $0.01. Even so, analysts from Barclays downgraded the stock following the earnings report, citing worries of a consumer slowdown and other macro trends.
BBY chart and analysis
Towards the end of May, higher trading volumes were noted, which led the shares to bounce off of $70, multiple times possibly creating a new support level. Despite this, shares are now trading below all daily Simple Moving Averages (SMAs), and have been in a continuous downtrend since December 2021. On the other hand, analysts rate the shares a moderate buy, predicting that in the next 12 months, shares may be trading at an average price of $91.27, which is 16.49% higher than the current trading price of $78.35. Even with the probable headwinds, analysts are citing, shareholders are likely to enjoy the dividend yield the company provides. At the time of writing, the yield stands at 4.79%, which means that shareholders will get $0.88 for each share they own. Moreover, there seems to be cautious optimism among banks regarding the state of the U.S. consumer. If spending continues, BBY should be in a good position to recover some of the losses sustained mostly due to worries of a consumption slowdown. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
