Hsbc Holdings PLC Acquires 5,492 Shares of BlueLinx Holdings Inc. $BXC

Key Points

• Hsbc Holdings PLC has increased its stake in BlueLinx Holdings Inc. by 31.7% during the first quarter, now owning approximately 0.28% of the company, valued at around $1.726 million.
• BlueLinx has authorized a stock buyback program allowing the repurchase of $50 million in shares, signaling the board's belief that the stock is currently undervalued.
• Equities analysts have mixed views on BlueLinx, with consensus ratings showing a "Moderate Buy" and a price target of $91.00, although some analysts have downgraded their ratings and price estimates.

Hsbc Holdings PLC grew its stake in BlueLinx Holdings Inc. (NYSE:BXC - Free Report) by 31.7% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 22,841 shares of the construction company's stock after purchasing an additional 5,492 shares during the quarter. Hsbc Holdings PLC owned about 0.28% of BlueLinx worth $1,726,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the stock. Nuveen LLC bought a new position in BlueLinx in the 1st quarter worth $59,497,000. Dimensional Fund Advisors LP raised its holdings in BlueLinx by 0.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 579,636 shares of the construction company's stock worth $59,216,000 after purchasing an additional 1,889 shares in the last quarter. American Century Companies Inc. raised its holdings in BlueLinx by 3.1% in the 1st quarter. American Century Companies Inc. now owns 321,375 shares of the construction company's stock worth $24,097,000 after purchasing an additional 9,808 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in shares of BlueLinx by 19.6% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 239,037 shares of the construction company's stock valued at $17,923,000 after buying an additional 39,166 shares in the last quarter. Finally, Harbor Capital Advisors Inc. boosted its holdings in shares of BlueLinx by 3.6% during the 1st quarter. Harbor Capital Advisors Inc. now owns 143,552 shares of the construction company's stock valued at $10,764,000 after buying an additional 5,000 shares in the last quarter. 90.83% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of brokerages have recently commented on BXC. DA Davidson set a $75.00 target price on shares of BlueLinx and gave the company a "neutral" rating in a report on Monday, August 4th. Benchmark dropped their target price on shares of BlueLinx from $110.00 to $83.00 and set a "buy" rating on the stock in a report on Friday, August 1st. Finally, Wall Street Zen cut shares of BlueLinx from a "hold" rating to a "sell" rating in a report on Friday, July 18th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $91.00.

BlueLinx Stock Down 1.6%

Shares of NYSE:BXC traded down $1.36 on Wednesday, hitting $81.41. 92,787 shares of the company traded hands, compared to its average volume of 108,366. BlueLinx Holdings Inc. has a 52 week low of $63.13 and a 52 week high of $134.79. The company has a quick ratio of 2.94, a current ratio of 4.55 and a debt-to-equity ratio of 0.96. The stock has a 50 day simple moving average of $79.15 and a 200-day simple moving average of $75.56. The company has a market cap of $642.29 million, a PE ratio of 24.16 and a beta of 1.58.

BlueLinx declared that its Board of Directors has initiated a share repurchase plan on Tuesday, July 29th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the construction company to purchase up to 8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board of directors believes its stock is undervalued.

BlueLinx Profile

BlueLinx Holdings Inc, together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects.