Best Buy Co. Inc. (NYSE:BBY) Relative Strength Index (RSI) is 32.77, with weekly volatility at 2.68% and ATR at 3.49. The BBY stock’s 52-week price range has touched low of $48.10 and a $124.89 high. Intraday shares traded counted 4.38 million, which was -62.27% lower than its 30-day average trading volume of 2.70M. Its shares traded lower over the last trading session, losing -1.65% on 12/10/20. The shares fell to a low of $99.60 before closing at $103.03. BBY’s previous close was $104.76 while the outstanding shares total 259.80M. The firm has a beta of 1.57, a 12-month trailing P/E ratio of 15.72, and a growth ratio of 1.46.
Investors have identified the Specialty Retail company Best Buy Co. Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $26.92 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Best Buy Co. Inc. (BBY) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For BBY, the company has in raw cash 5.14 billion on their books with 670.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 14.55 billion total, with 12.95 billion as their total liabilities.
BBY were able to record 3.37 billion as free cash flow during the Q3 2021 quarter of the year, this saw their quarterly net cash flow reduce by 2.92 billion. In cash movements, the company had a total of 3.91 billion as operating cash flow.
Potential earnings growth for Best Buy Co. Inc. (BBY)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2021 quarter of the year, Best Buy Co. Inc. recorded a total of 11.85 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 17.62% coming in sequential stages and their sales for the Q3 2021 quarter increasing by 16.39%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 9.06 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2.79 billion. This allows shareholders to hold on to 259.80M with the recently reported earning now reading 1.51 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2021 (2.06 cents a share).
Having a look at the company’s valuation, the company is expected to record 7.68 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on BBY sounds very interesting.
Is the stock of BBY attractive?
In related news, Chief Financial Officer, Bilunas Matthew M sold 4,120 shares of the company’s stock in a transaction that recorded on Nov 25. The sale was performed at an average price of 115.85, for a total value of 477,318. As the sale deal closes, the 10% Owner, SCHULZE RICHARD M now sold 436,199 shares of the company’s stock, valued at 50,729,244. Also, 10% Owner, SCHULZE RICHARD M sold 62,975 shares of the company’s stock in a deal that was recorded on Oct 08. The shares were price at an average price of 115.09 per share, with a total market value of 7,247,680. Following this completion of acquisition, the 10% Owner, SCHULZE RICHARD M now holds 41,251 shares of the company’s stock, valued at 4,748,328. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.
12 out of 28 analysts covering the stock have rated it a Buy, while 14 have maintained a Hold recommendation on Best Buy Co. Inc.. 1 analysts has assigned a Sell rating on the BBY stock. The 12-month mean consensus price target for the company’s shares has been set at $123.85.