Best Buy Slides After Earnings Beat as Investors Weigh Margin Quality

Best Buy Co., Inc. (BBY) is down 5.4% today. Here is some analysis on what might have caused this price movement.

Analysis: The move appears tied to a lukewarm reaction to Best Buy’s second-quarter earnings report. While the company beat on sales and profit and raised full-year guidance, investors may have focused on the quality of the margin improvement because part of the benefit came from tariff refunds, while underlying product margins remained softer and operating expenses increased.

Details:

Best Buy posted second-quarter revenue of $9.78 billion, adjusted EPS of $1.47, and comparable sales growth of 4.1%, with domestic comparable sales up 4.5%.

The company raised fiscal 2027 guidance, including revenue to $42.3 billion to $42.8 billion, comparable sales growth to 1.9% to 3.0%, and adjusted EPS to $6.70 to $6.90.

Domestic gross profit rate improved to 24.0% from 23.4%, helped by growth in Marketplace and Best Buy Ads as well as about $34 million in tariff refunds.

That margin improvement was partly offset by lower product margin rates, while domestic adjusted SG&A rose to 19.6% of revenue from 19.3%, which may have limited enthusiasm despite the headline beat.

Sources:

Best Buy, SEC, Reuters

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$BBY Insider Trading Activity

$BBY insiders have traded $BBY stock on the open market 22 times in the past 6 months. Of those trades, 0 have been purchases and 22 have been sales.

Here’s a breakdown of recent trading of $BBY stock by insiders over the last 6 months:

RICHARD M SCHULZE has made 0 purchases and 15 sales selling 1,900,350 shares for an estimated $151,144,664.
CORIE S BARRY (CEO) sold 42,869 shares for an estimated $2,744,430
MATTHEW M BILUNAS (SEVP Enterprise Strategy & CFO) sold 11,356 shares for an estimated $726,999
KATHLEEN SCARLETT (SEVP, Corp Affairs & HR) sold 8,049 shares for an estimated $515,288
JASON J BONFIG (SEVP Cust Offer, Fulfill & Can) sold 6,336 shares for an estimated $405,624
MATHEW WATSON (SVP, Controller & CAO) has made 0 purchases and 2 sales selling 5,082 shares for an estimated $342,793.
TODD G. HARTMAN (GC, Chief Risk Officer) sold 5,339 shares for an estimated $341,797

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$BBY Hedge Fund Activity

We have seen 458 institutional investors add shares of $BBY stock to their portfolio, and 537 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

SIXTH STREET PARTNERS MANAGEMENT COMPANY, L.P. added 6,873,191 shares (+inf%) to their portfolio in Q2 2026, for an estimated $521,537,733
JPMORGAN CHASE & CO added 4,835,542 shares (+inf%) to their portfolio in Q2 2026, for an estimated $366,920,926
RAYMOND JAMES FINANCIAL INC removed 3,170,922 shares (-75.2%) from their portfolio in Q2 2026, for an estimated $240,609,561
CITADEL ADVISORS LLC added 2,757,161 shares (+476.7%) to their portfolio in Q2 2026, for an estimated $209,213,376
AQR CAPITAL MANAGEMENT LLC removed 2,340,539 shares (-38.1%) from their portfolio in Q2 2026, for an estimated $177,600,099
JANE STREET GROUP, LLC added 2,065,725 shares (+1540.8%) to their portfolio in Q2 2026, for an estimated $156,747,213
WORLDQUANT MILLENNIUM ADVISORS LLC removed 1,600,946 shares (-99.8%) from their portfolio in Q2 2026, for an estimated $121,479,782

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$BBY Congressional Stock Trading

Members of Congress have traded $BBY stock 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $BBY stock by members of Congress over the last 6 months:

SENATOR ALAN ARMSTRONG purchased up to $15,000 on 03/27.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard. You can access data on congressional stock trades through the Quiver Quantitative API Congress trades endpoint.

$BBY Price Targets

Multiple analysts have issued price targets for $BBY recently. We have seen 14 analysts offer price targets for $BBY in the last 6 months, with a median target of $80.5.

Here are some recent targets:

Michael Baker from DA Davidson set a target price of $90.0 on 06/22/2026
Simeon Gutman from Morgan Stanley set a target price of $80.0 on 05/29/2026
Matthew McCartney from Wedbush set a target price of $75.0 on 05/29/2026
Michael Lasser from UBS set a target price of $86.0 on 05/29/2026
Christopher Horvers from JP Morgan set a target price of $84.0 on 05/29/2026
Zachary Fadem from Wells Fargo set a target price of $65.0 on 05/29/2026
Steven Forbes from Guggenheim set a target price of $90.0 on 05/29/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.