Boise Cascade (NYSE:BCC) Shares Up 5.4% - Still a Buy?

Key Points

• Boise Cascade shares rose 5.4% on Thursday, trading as high as $79.39 after closing at $75.99 the prior day.
• Analyst sentiment is mixed, with a consensus rating of “Hold” and an average price target of $92.80. Recent moves included target cuts and upgrades/downgrades from firms such as DA Davidson, Bank of America, Weiss Ratings, and Zacks.
• The company beat quarterly earnings and revenue expectations, reporting EPS of $0.50 versus $0.43 expected and revenue of $1.50 billion versus $1.46 billion expected. Boise Cascade also paid a quarterly dividend of $0.22 per share, equal to a 1.1% annualized yield.

Boise Cascade, L.L.C. (NYSE:BCC - Get Free Report) shot up 5.4% on Thursday . The company traded as high as $79.39 and last traded at $80.1030. 45,120 shares changed hands during mid-day trading, a decline of 90% from the average session volume of 429,995 shares. The stock had previously closed at $75.99.

Analyst Upgrades and Downgrades

Several brokerages have commented on BCC. DA Davidson cut their target price on Boise Cascade from $95.00 to $92.00 and set a "buy" rating on the stock in a research note on Wednesday, May 6th. Weiss Ratings upgraded Boise Cascade from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, May 18th. Bank of America upped their price target on Boise Cascade from $80.00 to $81.00 and gave the company an "underperform" rating in a report on Tuesday. Truist Financial set a $97.00 price objective on Boise Cascade in a report on Wednesday, May 6th. Finally, Zacks Research raised Boise Cascade from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $92.80.

Boise Cascade Stock Performance

The firm has a market cap of $2.86 billion, a P/E ratio of 27.49, a P/E/G ratio of 1.11 and a beta of 1.08. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.37 and a current ratio of 2.77. The business's 50-day simple moving average is $71.57 and its 200 day simple moving average is $76.83.

Boise Cascade (NYSE:BCC - Get Free Report) last released its quarterly earnings results on Monday, May 4th. The construction company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.07. The firm had revenue of $1.50 billion for the quarter, compared to analysts' expectations of $1.46 billion. Boise Cascade had a return on equity of 5.55% and a net margin of 1.73%.The company's revenue was down 2.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.06 EPS. As a group, equities analysts predict that Boise Cascade, L.L.C. will post 3.67 earnings per share for the current year.

Boise Cascade Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Monday, June 1st were issued a $0.22 dividend. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.88 dividend on an annualized basis and a yield of 1.1%. Boise Cascade's dividend payout ratio is currently 29.73%.

Insiders Place Their Bets

In other Boise Cascade news, SVP Jill Twedt sold 6,070 shares of the firm's stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $66.45, for a total value of $403,351.50. Following the transaction, the senior vice president directly owned 26,545 shares of the company's stock, valued at approximately $1,763,915.25. This trade represents a 18.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.42% of the company's stock.

Hedge Funds Weigh In On Boise Cascade

Institutional investors have recently made changes to their positions in the business. Norges Bank bought a new stake in Boise Cascade during the fourth quarter valued at approximately $42,146,000. Wellington Management Group LLP raised its position in Boise Cascade by 19.8% in the third quarter. Wellington Management Group LLP now owns 3,268,407 shares of the construction company's stock worth $252,713,000 after acquiring an additional 539,962 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Boise Cascade by 214,282.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 420,189 shares of the construction company's stock worth $30,926,000 after acquiring an additional 419,993 shares during the last quarter. Concentric Capital Strategies LP boosted its stake in shares of Boise Cascade by 202.0% during the 4th quarter. Concentric Capital Strategies LP now owns 425,179 shares of the construction company's stock worth $31,293,000 after acquiring an additional 284,406 shares during the last quarter. Finally, Two Sigma Investments LP grew its position in shares of Boise Cascade by 377.6% during the 3rd quarter. Two Sigma Investments LP now owns 292,556 shares of the construction company's stock valued at $22,620,000 after acquiring an additional 231,302 shares during the period. Institutional investors own 96.18% of the company's stock.

Boise Cascade Company Profile

Boise Cascade Company operates as a leading manufacturer and distributor of wood products and building materials in North America. The company's operations are organized into two primary segments: wood products manufacturing and building materials distribution. In its manufacturing segment, Boise Cascade produces a wide array of engineered wood products, including plywood, oriented strand board (OSB), lumber, particleboard and laminated veneer lumber (LVL), serving residential, commercial and industrial customers.

In its distribution segment, Boise Cascade sources and delivers building materials through an extensive network of distribution centers, servicing professional builders, remodelers, contractors and industrial customers.

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