BlueLinx's (BXC) "Sell (D+)" Rating Reiterated at Weiss Ratings

Key Points

• BlueLinx (BXC) has had its "sell (D+)" rating reissued by Weiss Ratings, indicating a continued negative outlook from analysts.
• Other analysts have also downgraded BlueLinx, with Wall Street Zen lowering its rating from "hold" to "sell" and Benchmark reducing the target price from $110.00 to $83.00.
• Despite the negative ratings, BlueLinx shares saw a 3.9% increase on Wednesday, reaching $74.41, and the company authorized a $50 million share buyback plan, signaling management's belief in the stock's undervaluation.

BlueLinx (NYSE:BXC - Get Free Report)'s stock had its "sell (d+)" rating reissued by Weiss Ratings in a report released on Wednesday,Weiss Ratings reports.

Other equities analysts also recently issued reports about the company. Wall Street Zen downgraded BlueLinx from a "hold" rating to a "sell" rating in a research report on Friday, July 18th. DA Davidson set a $75.00 target price on BlueLinx and gave the company a "neutral" rating in a research report on Monday, August 4th. Finally, Benchmark dropped their target price on BlueLinx from $110.00 to $83.00 and set a "buy" rating for the company in a research report on Friday, August 1st. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $91.00.

BlueLinx Trading Up 3.9%

Shares of BXC stock traded up $2.81 on Wednesday, hitting $74.41. The stock had a trading volume of 71,879 shares, compared to its average volume of 98,531. The company has a debt-to-equity ratio of 0.96, a current ratio of 4.55 and a quick ratio of 2.94. The firm has a market capitalization of $587.09 million, a P/E ratio of 22.08 and a beta of 1.58. BlueLinx has a 1 year low of $63.13 and a 1 year high of $134.79. The company's 50 day moving average price is $77.47 and its 200-day moving average price is $74.58.

BlueLinx announced that its Board of Directors has authorized a share buyback plan on Tuesday, July 29th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the construction company to buy up to 8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Nuveen LLC purchased a new stake in shares of BlueLinx in the first quarter valued at $59,497,000. Gendell Jeffrey L boosted its position in shares of BlueLinx by 16.8% during the 2nd quarter. Gendell Jeffrey L now owns 563,730 shares of the construction company's stock valued at $41,930,000 after purchasing an additional 80,903 shares in the last quarter. American Century Companies Inc. boosted its position in BlueLinx by 3.1% during the first quarter. American Century Companies Inc. now owns 321,375 shares of the construction company's stock valued at $24,097,000 after purchasing an additional 9,808 shares during the last quarter. Charles Schwab Investment Management Inc. raised its holdings in BlueLinx by 19.6% during the first quarter. Charles Schwab Investment Management Inc. now owns 239,037 shares of the construction company's stock valued at $17,923,000 after buying an additional 39,166 shares in the last quarter. Finally, River Road Asset Management LLC lifted its holdings in shares of BlueLinx by 4.3% during the 2nd quarter. River Road Asset Management LLC now owns 217,130 shares of the construction company's stock worth $15,909,000 after acquiring an additional 8,967 shares during the period. Institutional investors and hedge funds own 90.83% of the company's stock.

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.

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