Workers Return to Best Buy After Months-Long Furlough

Customers will be able to shop at over 800 of its locations without an appointment, starting next week

Deputy Editor
Jun 10, 2020 at 9:35 AM
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Tech retailer Best Buy Co Inc (NYSE:BBY) announced last night that starting June 15, customers will be able to shop in 800 of its locations without an appointment, though a limited number of people will now be let inside. The company also said it planned on bringing back over 9,000 of its employees who have been furloughed during the COVID-19 crisis. The shares of BBY are slightly higher following the news, up 0.5% at $81.99 at last check. 

When we last looked at BBY, the stock was gapping atop recent pressure at the $80 level and hitting a two-month peak of $87.69. While the shares were sent away from this area one day later, briefly back below the aforementioned $80 level, the stock's 30-day moving average has kept some of these losses in check. Year-over-year, BBY is up roughly 25%. 

Sentiment surrounding Best Buy remains split, with nine analysts saying "strong buy" and nine saying "hold." Plus, the consensus 12-month price target of $86.10 is just a slim 5.5% premium to last night's close. 

The options pits have been a bit more optimistic, with calls doubling puts in the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 76% of readings from the past year, suggesting a healthier-than-usual appetite for long calls of late. 

Short interest is unwinding on BBY, too, down 9.8% in the last reporting period. Now, the 6.45 million shares sold short represent a slim 2.8% of the stock's available float or two days at its average pace of trading. 

 

 


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