Boise Cascade (NYSE:BCC) Sets New 1-Year Low - Should You Sell?

Key Points

• Boise Cascade's shares have dropped to a new 52-week low, hitting $75.88 during trading, indicating significant market volatility.
• Recent analyst reports have resulted in downward revisions of price targets, with some analysts maintaining a "buy" rating and a moderate investment outlook.
• The company recently announced a quarterly dividend increase to $0.22 per share, highlighting its commitment to returning value to shareholders despite declining earnings.

Shares of Boise Cascade, L.L.C. (NYSE:BCC - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $75.88 and last traded at $75.96, with a volume of 26852 shares. The stock had previously closed at $77.63.

Analysts Set New Price Targets

BCC has been the subject of a number of recent analyst reports. Truist Financial decreased their price objective on Boise Cascade from $101.00 to $96.00 and set a "buy" rating for the company in a report on Wednesday, September 17th. BMO Capital Markets reaffirmed a "market perform" rating and set a $100.00 price target on shares of Boise Cascade in a research note on Tuesday, September 16th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Boise Cascade in a research note on Saturday, September 27th. DA Davidson decreased their price target on Boise Cascade from $115.00 to $100.00 and set a "buy" rating for the company in a research note on Friday, July 18th. Finally, Bank of America decreased their price target on Boise Cascade from $111.00 to $107.00 and set a "buy" rating for the company in a research note on Wednesday, July 9th. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $110.67.

Boise Cascade Price Performance

The stock has a fifty day moving average price of $83.96 and a 200-day moving average price of $88.58. The company has a market cap of $2.80 billion, a PE ratio of 11.04, a price-to-earnings-growth ratio of 5.28 and a beta of 1.27. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.96 and a quick ratio of 1.54.

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

Boise Cascade Increases Dividend

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

Insider Transactions at Boise Cascade

In other news, SVP Jill Twedt sold 1,782 shares of the company's stock in a transaction 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 transaction, the senior vice president directly owned 32,867 shares of the company's stock, valued at approximately $2,759,841.99. This represents a 5.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Troy Little sold 2,033 shares of the company's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $83.10, for a total transaction of $168,942.30. Following the completion of the transaction, the executive vice president directly owned 12,701 shares in the company, valued at $1,055,453.10. This trade represents a 13.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 4,815 shares of company stock valued at $409,637. 0.98% of the stock is owned by insiders.

Hedge Funds Weigh In On Boise Cascade

Several hedge funds have recently bought and sold shares of the business. Corient Private Wealth LLC increased its position in Boise Cascade by 114.7% during the second quarter. Corient Private Wealth LLC now owns 4,156 shares of the construction company's stock worth $361,000 after buying an additional 2,220 shares during the last quarter. Texas Permanent School Fund Corp increased its position in Boise Cascade by 30.6% during the second quarter. Texas Permanent School Fund Corp now owns 50,523 shares of the construction company's stock worth $4,386,000 after buying an additional 11,836 shares during the last quarter. Osaic Holdings Inc. increased its position in Boise Cascade by 114.5% during the second quarter. Osaic Holdings Inc. now owns 3,902 shares of the construction company's stock worth $358,000 after buying an additional 2,083 shares during the last quarter. Squarepoint Ops LLC acquired a new position in Boise Cascade during the second quarter worth $1,942,000. Finally, State of Wyoming acquired a new position in Boise Cascade during the second quarter worth $314,000. 96.18% of the stock is owned by institutional investors and hedge funds.

About Boise Cascade

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.