Boise Cascade (NYSE:BCC) Reaches New 52-Week Low - Should You Sell?

Key Points

• Boise Cascade's shares hit a new 52-week low of $70.00 on Monday, closing at $71.31 with a trading volume of 329,150 shares.
• A number of brokerages have adjusted their price targets for Boise Cascade, with current ratings ranging from "buy" to "hold" and an average price target of $103.33.
• The company recently increased its quarterly dividend to $0.22 per share, up from $0.21, representing a yield of 1.2% and a dividend payout ratio of 12.92%.

Shares of Boise Cascade, L.L.C. (NYSE:BCC - Get Free Report) reached a new 52-week low on Monday . The stock traded as low as $70.00 and last traded at $71.31, with a volume of 329150 shares. The stock had previously closed at $70.84.

Analyst Ratings Changes

A number of brokerages have commented on BCC. Bank of America decreased their price target on Boise Cascade from $111.00 to $107.00 and set a "buy" rating on the stock in a research note on Wednesday, July 9th. DA Davidson dropped their target price on Boise Cascade from $115.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, July 18th. BMO Capital Markets reissued a "market perform" rating and issued a $100.00 target price on shares of Boise Cascade in a report on Tuesday, September 16th. The Goldman Sachs Group dropped their target price on Boise Cascade from $96.00 to $82.00 and set a "neutral" rating on the stock in a report on Monday, October 13th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Boise Cascade in a report on Wednesday, October 8th. Four analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Boise Cascade has a consensus rating of "Moderate Buy" and an average price target of $103.33.

Boise Cascade Trading Up 0.4%

The stock has a market capitalization of $2.66 billion, a PE ratio of 10.44, a PEG ratio of 5.42 and a beta of 1.27. The stock's 50 day moving average price is $81.76 and its 200-day moving average price is $86.73. The company has a quick ratio of 1.54, a current ratio of 2.96 and a debt-to-equity ratio of 0.21.

Boise Cascade (NYSE:BCC - Get Free Report) last issued its earnings results on Monday, August 4th. The construction company reported $1.64 earnings per share for the quarter, missing the consensus estimate of $1.69 by ($0.05). Boise Cascade had a return on equity of 12.26% and a net margin of 4.00%.The firm had revenue of $1.74 billion during the quarter, compared to the consensus estimate of $1.76 billion. During the same period in the prior year, the company posted $2.84 EPS. The company's quarterly revenue was down 3.2% on a year-over-year basis. On average, sell-side analysts expect that Boise Cascade, L.L.C. will post 10.15 earnings per share for the current fiscal year.

Boise Cascade Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 17th. Investors of record on Tuesday, September 2nd were paid a dividend of $0.22 per share. This is a boost from Boise Cascade's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $0.88 annualized dividend and a yield of 1.2%. Boise Cascade's dividend payout ratio is 12.92%.

Insider Activity at Boise Cascade

In other Boise Cascade news, COO Jeffrey Robert Strom sold 1,000 shares of the company's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $91.06, for a total transaction of $91,060.00. Following the sale, the chief operating officer directly owned 37,026 shares in the company, valued at $3,371,587.56. This represents a 2.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, SVP Jill Twedt sold 1,782 shares of the company's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $83.97, for a total value of $149,634.54. Following the sale, the senior vice president owned 32,867 shares in the company, valued at approximately $2,759,841.99. This trade represents a 5.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 4,815 shares of company stock valued at $409,637. 1.11% of the stock is owned by company insiders.

Institutional Investors Weigh In On Boise Cascade

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BCC. Huntington National Bank raised its holdings in shares of Boise Cascade by 630.0% in the second quarter. Huntington National Bank now owns 438 shares of the construction company's stock worth $38,000 after buying an additional 378 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Boise Cascade by 120.7% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 406 shares of the construction company's stock worth $40,000 after buying an additional 222 shares during the period. RMG Wealth Management LLC purchased a new stake in shares of Boise Cascade in the second quarter worth approximately $42,000. Farther Finance Advisors LLC raised its holdings in shares of Boise Cascade by 338.5% in the first quarter. Farther Finance Advisors LLC now owns 478 shares of the construction company's stock worth $47,000 after buying an additional 369 shares during the period. Finally, CWM LLC raised its holdings in shares of Boise Cascade by 30.6% in the third quarter. CWM LLC now owns 747 shares of the construction company's stock worth $58,000 after buying an additional 175 shares during the period. 96.18% of the stock is currently owned by hedge funds and other institutional investors.

Boise Cascade Company Profile

Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine shop lumber and appearance grade boards.

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