BlueLinx (NYSE:BXC) to Repurchase $50.00 million in Stock

Key Points

• BlueLinx's board has initiated a share buyback program, permitting the company to repurchase up to $50 million or 8% of its outstanding shares, reflecting the board's belief that the shares are undervalued.
• The company's recent earnings report revealed an earnings per share (EPS) of $0.48, missing analysts' expectations of $1.00, indicating potential concerns about its financial performance.
• Analyst ratings for BlueLinx show a mixed sentiment, with one sell rating, one hold, and three buy ratings, and an average target price of $110.00.

BlueLinx (NYSE:BXC - Get Free Report) declared that its board has authorized a share repurchase program on Tuesday, July 29th, RTT News reports. The company plans to repurchase $50.00 million in shares. This repurchase authorization allows the construction company to reacquire up to 8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

BlueLinx Trading Down 1.8%

Shares of NYSE BXC traded down $1.31 during mid-day trading on Friday, reaching $71.97. The company had a trading volume of 155,832 shares, compared to its average volume of 131,450. The stock has a market cap of $567.80 million, a price-to-earnings ratio of 21.35 and a beta of 1.74. BlueLinx has a 52 week low of $63.13 and a 52 week high of $134.79. The business's 50-day moving average is $74.49 and its 200-day moving average is $79.95. The company has a current ratio of 4.55, a quick ratio of 2.73 and a debt-to-equity ratio of 0.96.

Analyst Ratings Changes

BXC has been the topic of several recent analyst reports. Loop Capital decreased their target price on BlueLinx from $120.00 to $115.00 and set a "buy" rating on the stock in a research note on Monday, April 14th. DA Davidson cut shares of BlueLinx from a "buy" rating to a "neutral" rating and set a $80.00 price objective on the stock. in a research report on Friday, July 18th. Wall Street Zen lowered shares of BlueLinx from a "hold" rating to a "sell" rating in a research report on Friday, July 18th. Finally, Benchmark cut their target price on shares of BlueLinx from $110.00 to $83.00 and set a "buy" rating for the company in a research note on Friday.

About BlueLinx

BlueLinx Holdings Inc, together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects.