Shares of Best Buy (NYSE:BBY) are in full-focus today following a massive insider purchase from Chairman Emeritus and founder Richard Schulze. Chairman Emeritus is an honorary position meaning that Schulze previously served as Chairman of Best Buy’s board. Schulze is a billionaire with an estimated net worth of $4 billion.
Last month, Best Buy announced that it would expand its merchandise into categories like “beauty gadgets and patio furniture.” In March, the company also warned it “expects a same-store sales decline of between 1% and 4%” for the upcoming year. Best Buy benefited during the Covid-19 pandemic; customers flocked to its stores to purchase TVs, monitors and kitchen appliances.
BBY stock is down about 21% YTD as consumers normalize their spending habits in light of a high inflationary environment. That in mind, let’s take a look at Schulze’s recent purchase.
Richard Schulze Buys BBY Stock
On May 25, Richard Schulze purchased 250,000 shares of BBY stock at average prices ranging between $78.58 and $80.29. In total, the purchase amounted to a whopping $19.9 million. The transaction was also the largest insider buy of the week.
Schulze purchased shares under his revocable trust, which now owns a total of 20.46 million shares. The founder also owns 3.14 million shares through various financial vehicles, such as his 401K and family foundation. In total, Schulze owns 23.61 million shares, making him one of the largest shareholders of BBY stock.
How do other Best Buy insiders feel about their company? In the past 12 months, insiders have purchased 1.27 million shares while selling 1.79 million shares. In total, insiders have accounted for a net activity of 524,016 shares sold.
Who Else Is Betting Big on Best Buy?
Tracking institutional ownership is important, as these large shareholders provide liquidity and price support for stocks. During the first quarter, 763 funds reported owning BBY, a decrease from 818 funds during Q4. Meanwhile, the institutional put/call ratio sits at 1.27. This means that more funds own put options against the company than call options. On the bright side, however, the put/call ratio decreased from 1.74 in the prior quarter.
Here are the five largest shareholders of BBY stock:
- Vanguard Group: 26.38 million shares. Vanguard sold 1.31 million shares in Q1.
- Richard Schulze, founder and Chairman Emeritus: 23.61 million shares.
- BlackRock (NYSE:BLK): 21.39 million shares. BlackRock sold 475,012 shares during Q1.
- JPMorgan (NYSE:JPM): 12.58 million shares. J.P. Morgan bought 955,175 shares during Q1.
- State Street: 9.98 million shares. State Street sold 417,728 shares in Q1.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.