Boise Cascade (NYSE:BCC) Sets New 1-Year Low - Time to Sell?

Key Points

• Boise Cascade's shares hit a new 52-week low of $80.19, raising concerns about potential sell-offs among investors.
• Several firms downgraded their price targets for the stock, with BMO Capital Markets dropping it from $114 to $108 and others also reducing their estimates.
• The company announced a quarterly dividend increase to $0.22 per share, reflecting a 1.1% dividend yield, up from the previous $0.21 payout.

Boise Cascade, L.L.C. (NYSE:BCC - Get Free Report) shares reached a new 52-week low during trading on Monday . The stock traded as low as $80.19 and last traded at $80.19, with a volume of 45231 shares. The stock had previously closed at $82.09.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on BCC. BMO Capital Markets lowered their target price on Boise Cascade from $114.00 to $108.00 and set a "market perform" rating for the company in a report on Thursday. DA Davidson cut their price target on Boise Cascade from $115.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, July 18th. Truist Financial cut their price target on Boise Cascade from $106.00 to $101.00 and set a "buy" rating on the stock in a report on Thursday. Loop Capital cut their price target on Boise Cascade from $140.00 to $135.00 and set a "buy" rating on the stock in a report on Monday, April 14th. Finally, Bank of America cut their price target on Boise Cascade from $111.00 to $107.00 and set a "buy" rating on the stock in a report on Wednesday, July 9th. Four research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $112.83.

Boise Cascade Stock Performance

The firm has a fifty day moving average price of $87.31 and a 200 day moving average price of $96.57. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.54 and a current ratio of 2.96. The stock has a market cap of $3.02 billion, a PE ratio of 11.89, a price-to-earnings-growth ratio of 4.88 and a beta of 1.28.

Boise Cascade (NYSE:BCC - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The construction company reported $1.64 earnings per share for the quarter, missing analysts' consensus estimates of $1.69 by ($0.05). The company had revenue of $1.74 billion for 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 quarterly revenue was down 3.2% compared to the same quarter last year. During the same period last year, the firm earned $2.84 earnings per share. Research analysts forecast that Boise Cascade, L.L.C. will post 10.15 earnings per share for the current fiscal year.

Boise Cascade Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Stockholders of record on Tuesday, September 2nd will be issued a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.1%. This is a boost from Boise Cascade's previous quarterly dividend of $0.21. The ex-dividend date of this dividend is Tuesday, September 2nd. Boise Cascade's dividend payout ratio is presently 12.92%.

Insider Activity

In other news, SVP Jill Twedt sold 1,782 shares of the business's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $83.97, for a total transaction of $149,634.54. Following the sale, the senior vice president directly owned 32,867 shares of the company's stock, valued at $2,759,841.99. The trade was a 5.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Troy Little sold 2,033 shares of the firm'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 transaction, the executive vice president directly owned 12,701 shares of the company's stock, valued at approximately $1,055,453.10. This trade represents a 13.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 6,015 shares of company stock valued at $511,869 over the last ninety days. 0.98% of the stock is currently owned by insiders.

Institutional Trading of Boise Cascade

A number of hedge funds have recently added to or reduced their stakes in BCC. LPL Financial LLC increased its holdings in Boise Cascade by 29.1% in the 4th quarter. LPL Financial LLC now owns 14,127 shares of the construction company's stock worth $1,679,000 after acquiring an additional 3,187 shares in the last quarter. Wells Fargo & Company MN increased its holdings in Boise Cascade by 9.2% in the 4th quarter. Wells Fargo & Company MN now owns 90,347 shares of the construction company's stock worth $10,739,000 after acquiring an additional 7,578 shares in the last quarter. Envestnet Asset Management Inc. increased its holdings in Boise Cascade by 6.6% in the 4th quarter. Envestnet Asset Management Inc. now owns 134,715 shares of the construction company's stock worth $16,012,000 after acquiring an additional 8,357 shares in the last quarter. Invesco Ltd. increased its holdings in Boise Cascade by 8.7% in the 4th quarter. Invesco Ltd. now owns 358,368 shares of the construction company's stock worth $42,596,000 after acquiring an additional 28,814 shares in the last quarter. Finally, FIL Ltd increased its holdings in Boise Cascade by 76.1% in the 4th quarter. FIL Ltd now owns 5,238 shares of the construction company's stock worth $623,000 after acquiring an additional 2,264 shares in the last quarter. 96.18% of the stock is 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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