KeyCorp Has Negative Outlook for Best Buy Q2 Earnings

Best Buy Co., Inc. (NYSE:BBY) – Analysts at KeyCorp decreased their Q2 2027 earnings per share (EPS) estimates for Best Buy in a research report issued on Thursday, May 28th. KeyCorp analyst B. Thomas now anticipates that the technology retailer will post earnings per share of $1.36 for the quarter, down from their prior estimate of $1.38. KeyCorp currently has a “Sector Weight” rating on the stock. The consensus estimate for Best Buy’s current full-year earnings is $6.55 per share. KeyCorp also issued estimates for Best Buy’s Q3 2027 earnings at $1.36 EPS, Q4 2027 earnings at $2.51 EPS, FY2027 earnings at $6.50 EPS and FY2028 earnings at $6.90 EPS.

Best Buy (NYSE:BBY) last announced its earnings results on Thursday, May 28th. The technology retailer reported $1.28 earnings per share for the quarter, topping analysts’ consensus estimates of $1.23 by $0.05. The company had revenue of $8.94 billion for the quarter, compared to analyst estimates of $8.82 billion. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The firm’s quarterly revenue was up 1.9% compared to the same quarter last year. During the same quarter last year, the company earned $1.15 earnings per share. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS.

A number of other equities analysts have also weighed in on the company. Telsey Advisory Group set a $90.00 target price on Best Buy and gave the stock an “outperform” rating in a research note on Friday, May 29th. Jefferies Financial Group increased their target price on Best Buy from $83.00 to $89.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. BNP Paribas Exane increased their target price on Best Buy from $74.00 to $76.00 and gave the stock a “neutral” rating in a research note on Friday, May 29th. Loop Capital increased their target price on Best Buy from $75.00 to $85.00 and gave the stock a “buy” rating in a research note on Friday, May 29th. Finally, Evercore increased their target price on Best Buy from $65.00 to $85.00 in a research note on Friday, May 29th. Six analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Best Buy currently has a consensus rating of “Hold” and an average price target of $79.05.

Best Buy Price Performance

Shares of NYSE BBY opened at $71.84 on Thursday. The firm has a market cap of $15.14 billion, a P/E ratio of 13.30, a price-to-earnings-growth ratio of 1.94 and a beta of 1.30. The company has a current ratio of 1.12, a quick ratio of 0.40 and a debt-to-equity ratio of 0.38. Best Buy has a 1-year low of $55.10 and a 1-year high of $84.99. The business’s 50 day moving average is $62.87 and its 200-day moving average is $66.72.

Best Buy Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be paid a $0.96 dividend. The ex-dividend date is Thursday, June 18th. This represents a $3.84 annualized dividend and a dividend yield of 5.3%. Best Buy’s dividend payout ratio (DPR) is presently 71.11%.

Insider Buying and Selling

In other news, Chairman Richard M. Schulze sold 500,350 shares of Best Buy stock in a transaction on Friday, May 29th. The stock was sold at an average price of $76.12, for a total value of $38,086,642.00. Following the transaction, the chairman owned 10,930,586 shares in the company, valued at approximately $832,036,206.32. This trade represents a 4.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Kathleen Scarlett sold 8,049 shares of Best Buy stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total value of $515,296.98. Following the completion of the transaction, the executive vice president owned 102,669 shares in the company, valued at approximately $6,572,869.38. The trade was a 7.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 579,381 shares of company stock worth $43,163,654. 0.47% of the stock is owned by company insiders.

Hedge Funds Weigh In On Best Buy

Several hedge funds and other institutional investors have recently modified their holdings of the business. Parallel Advisors LLC increased its stake in shares of Best Buy by 40.6% in the 1st quarter. Parallel Advisors LLC now owns 3,968 shares of the technology retailer’s stock valued at $255,000 after purchasing an additional 1,146 shares during the last quarter. Cozad Asset Management Inc. increased its stake in shares of Best Buy by 4.1% in the 1st quarter. Cozad Asset Management Inc. now owns 23,006 shares of the technology retailer’s stock valued at $1,477,000 after purchasing an additional 916 shares during the last quarter. Glenmede Trust Co. NA increased its stake in shares of Best Buy by 11.5% in the 1st quarter. Glenmede Trust Co. NA now owns 22,452 shares of the technology retailer’s stock valued at $1,441,000 after purchasing an additional 2,314 shares during the last quarter. Royal Fund Management LLC bought a new position in shares of Best Buy in the 1st quarter valued at $3,162,000. Finally, Bank of America Corp DE increased its stake in shares of Best Buy by 17.8% in the 1st quarter. Bank of America Corp DE now owns 1,139,804 shares of the technology retailer’s stock valued at $73,175,000 after purchasing an additional 172,579 shares during the last quarter. Institutional investors own 80.96% of the company’s stock.

Trending Headlines about Best Buy

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Daiwa Securities lifted its price target on BBY to $77 from $68, suggesting improved expectations even though the firm kept a neutral rating. Other analysts also raised targets recently, which can help support the stock. MarketScreener
• Positive Sentiment: Best Buy’s latest quarterly results topped estimates on both EPS and revenue, and management maintained its FY2027 outlook, reinforcing the view that the business is executing well. Yahoo Finance
• Positive Sentiment: Media coverage around Best Buy’s AI laptop assortment, marketplace growth, and other new product initiatives has fueled optimism that the retailer may be finding new growth drivers. MarketBeat
• Neutral Sentiment: Jim Cramer highlighted Best Buy in recent commentary, and other coverage noted the stock’s strong year-to-date performance and dividend yield. These items may support sentiment, but they are not direct catalysts. Yahoo Finance
• Negative Sentiment: Chairman Richard M. Schulze sold 500,350 shares, and CAO Mathew Watson also sold shares. Insider selling can weigh on investor confidence, especially after a strong run in the stock. SEC filing
• Negative Sentiment: One report said BBY underperformed peers on Tuesday, hinting that traders may be rotating away from the stock despite recent operational improvements. MarketWatch

About Best Buy

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.