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Best Buy to Enforce Face Coverings in Stores

The stock is trading slightly higher this morning

Digital Content Manager
Jul 15, 2020 at 10:37 AM
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Best Buy Co Inc (NYSE:BBY) just joined a growing list of chain restaurants and retailers requiring customers to wear masks in its stores, starting July 15. Several big companies, including Costco (COST) and Starbucks (SBUX), now require face coverings in all of their locations in an effort to curb the spread of the coronavirus, which is continues to spike in the U.S. At last check, BBY is up 0.4% at $87.22. 

Best Buy's attempt to recover from its late-March lows near the $48 level has been impressive. The stock is now up roughly 25% in the last three months, with strong support at the ascending 30- and 50-day moving averages. However, the security's February highs continue to elude it, with the previously supportive $88 level rejecting BBY several times during the past couple months, even though is also home to the stock's year-to-date breakeven.

Analysts' opinions are split. Currently, eight call Best Buy stock a "strong buy," while nine say "hold." The consensus 12-month price target of $87.29, meanwhile, is right in line with current levels. 

Short sellers, on the other hand, are piling on. Short interest rose 24.9% in the last two reporting periods. Now, the 7.63 million shares sold short make up 3.3% of BBY's available float, and would take just under three days to cover, at the equity's average daily pace of trading. 

 

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