Richard Schulze, the founder and Chairman Emeritus (ex-chairman) of Best Buy Co. Inc. (BBY), recently sold shares worth $88.45 million. A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
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Best Buy is one of America’s largest consumer electronics retailers, founded by Schulze and James Wheeler in 1966. Best Buy has consistently paid attractive dividends. Its most recently paid regular quarterly dividend of $0.94 per share represents an above-sector average yield of 4.2%.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on July 22, Schulze undertook multiple sales of 1 million BBY shares between July 18 and July 22, at weighted average prices ranging between $87 and $89.995 apiece. It is worth noting that even after the latest Informative Sell transactions, Schulze still owns $1.46 billion worth of Best Buy shares, both directly and indirectly.
Best Buy Co. stock currently has a Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $255.30 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is Best Buy Stock a Buy?
On TipRanks, BBY stock has a Moderate Buy consensus rating based on eight Buys, seven Holds, and one Sell recommendation. The average Best Buy Co. price target of $90.55 implies 1.8% upside potential from current levels. Meanwhile, BBY shares have gained 16.2% so far this year.
