Is it worth buying Best Buy or should you shop somewhere else?
Last year, Best Buy was one of the worst stocks in the entire S&P 500, losing half its value in 2012. This year, it’s one of the best performing stocks in the index – it’s up 220%.
So, why did CEO Hubert Joly sell more than 451,000 shares for $16.7 million? Officially, it’s because he wanted to pay for his divorce.
However, Joly isn’t the only Best Buy insider to sell a sizeable amount of stock recently. Three weeks ago, it was revealed that founder Richard Schulze is selling part of his 20% stake for what he said was diversification reasons and to fund an educational charity.
But this month, two other insiders – the company’s treasurer and it chief counsel – sold nearly 20,000 shares combined for about a quarter of a million dollars. All told, the four insiders sold 1.26 million shares for close to $46.7 million, $29.3 million of which was from Schulze’s planned sale.
But as the company tries to turn itself around in the face of more competition from online retailers, are the personal plans of insiders as good a reason as any to get out of the stock now? Or is Best Buy a good buy?
(Watch: Four CEOs that impress Jim Cramer)
Talking Numbers talks numbers with CNBC contributor Gina Sanchez, Chairwoman and Founder of Chantico Global, on Best Buy’s fundamentals. Looking at Best Buy’s charts is Jonathan Krinsky, Chief Technical Market Analyst at Miller Tabak.
Is it worth buying Best Buy or should you shop somewhere else? Watch the video above to see Sanchez and Krinsky analyze the company.
More from Talking Numbers:
- Investment & Company Information
- Best Buy
- Hubert Joly
- Richard Schulze