Boise Cascade (NYSE:BCC) Sets New 1-Year Low - Here's Why

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 company traded as low as $80.19 and last traded at $80.19, with a volume of 45231 shares changing hands. The stock had previously closed at $82.09.

Analyst Upgrades and Downgrades

BCC has been the topic of a number of research analyst reports. BMO Capital Markets cut their price objective on shares of Boise Cascade from $114.00 to $108.00 and set a "market perform" rating on the stock in a report on Thursday, August 7th. Bank of America decreased their price objective on Boise Cascade from $111.00 to $107.00 and set a "buy" rating for the company in a research report on Wednesday, July 9th. DA Davidson dropped their price target on shares of Boise Cascade from $115.00 to $100.00 and set a "buy" rating on the stock in a research note on Friday, July 18th. Finally, Truist Financial cut their price objective on Boise Cascade from $106.00 to $101.00 and set a "buy" rating for the company in a research report on Thursday, August 7th. Four equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $112.83.

Boise Cascade Trading Down 0.4%

The business has a 50 day simple moving average of $87.16 and a 200-day simple moving average of $95.53. The stock has a market capitalization of $3.22 billion, a price-to-earnings ratio of 12.66, a price-to-earnings-growth ratio of 5.15 and a beta of 1.28. The company has a current ratio of 2.96, a quick ratio of 1.54 and a debt-to-equity ratio of 0.21.

Boise Cascade (NYSE:BCC - Get Free Report) last posted 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). Boise Cascade had a return on equity of 12.26% and a net margin of 4.00%. The business had revenue of $1.74 billion for the quarter, compared to analyst estimates of $1.76 billion. During the same period last year, the company posted $2.84 EPS. The firm's revenue for the quarter was down 3.2% compared to the same quarter last year. On average, equities analysts predict 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 disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Tuesday, September 2nd will be 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 is Tuesday, September 2nd. This represents a $0.88 dividend on an annualized basis and a yield of 1.0%. Boise Cascade's payout ratio is 12.33%.

Insider Buying and Selling at Boise Cascade

In other Boise Cascade news, EVP Joanna L. Barney sold 1,000 shares of the stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $87.68, for a total transaction of $87,680.00. Following the sale, the executive vice president directly owned 12,372 shares of the company's stock, valued at approximately $1,084,776.96. This represents a 7.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Troy Little sold 2,033 shares of the firm's stock in a transaction dated 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 represents a 13.80% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 6,015 shares of company stock worth $511,869 in the last 90 days. 0.98% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in shares of Boise Cascade during the second quarter worth approximately $39,818,000. Westwood Holdings Group Inc. raised its position in Boise Cascade by 25.7% in the first quarter. Westwood Holdings Group Inc. now owns 1,499,305 shares of the construction company's stock worth $147,067,000 after acquiring an additional 306,684 shares in the last quarter. First Trust Advisors LP lifted its stake in Boise Cascade by 37.9% during the fourth quarter. First Trust Advisors LP now owns 712,527 shares of the construction company's stock valued at $84,691,000 after purchasing an additional 195,773 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Boise Cascade by 76.5% during the 2nd quarter. Bank of America Corp DE now owns 417,642 shares of the construction company's stock worth $36,260,000 after acquiring an additional 181,025 shares in the last quarter. Finally, GAMMA Investing LLC boosted its position in shares of Boise Cascade by 15,650.6% in the 1st quarter. GAMMA Investing LLC now owns 143,015 shares of the construction company's stock valued at $14,028,000 after purchasing an additional 142,107 shares during the period. 96.18% of the stock is currently owned by 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.