Lord Abbett & CO. LLC Reduces Stock Position in BlueLinx Holdings Inc. $BXC

Key Points

• Lord Abbett & CO. LLC reduced its stake in BlueLinx Holdings by 19.3%, owning 46,319 shares worth approximately $3.47 million after selling 11,081 shares in the first quarter.
• BlueLinx announced a $50 million share buyback program, indicating that the board believes its stock may be undervalued.
• Recent analyst reports show mixed sentiments, with Benchmark lowering its price target from $110 to $83 while maintaining a "buy" rating.

Lord Abbett & CO. LLC reduced its position in shares of BlueLinx Holdings Inc. (NYSE:BXC - Free Report) by 19.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 46,319 shares of the construction company's stock after selling 11,081 shares during the period. Lord Abbett & CO. LLC owned 0.58% of BlueLinx worth $3,473,000 as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Nuveen LLC purchased a new stake in BlueLinx in the first quarter worth about $59,497,000. Deutsche Bank AG lifted its holdings in BlueLinx by 19.9% in the first quarter. Deutsche Bank AG now owns 45,672 shares of the construction company's stock worth $3,424,000 after buying an additional 7,574 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in BlueLinx by 19.6% in the first quarter. Charles Schwab Investment Management Inc. now owns 239,037 shares of the construction company's stock worth $17,923,000 after buying an additional 39,166 shares during the period. PNC Financial Services Group Inc. lifted its holdings in BlueLinx by 169.7% in the first quarter. PNC Financial Services Group Inc. now owns 1,618 shares of the construction company's stock worth $121,000 after buying an additional 1,018 shares during the period. Finally, De Lisle Partners LLP lifted its holdings in BlueLinx by 2.0% in the first quarter. De Lisle Partners LLP now owns 51,873 shares of the construction company's stock worth $3,893,000 after buying an additional 1,000 shares during the period. 90.83% of the stock is currently owned by hedge funds and other institutional investors.

BlueLinx Stock Down 4.0%

Shares of BXC traded down $3.2030 on Wednesday, hitting $77.8570. 191,701 shares of the stock traded hands, compared to its average volume of 100,246. The company has a market capitalization of $614.45 million, a PE ratio of 23.10 and a beta of 1.74. The company has a debt-to-equity ratio of 0.96, a quick ratio of 2.94 and a current ratio of 4.55. The business has a 50 day simple moving average of $76.39 and a 200 day simple moving average of $77.00. BlueLinx Holdings Inc. has a one year low of $63.13 and a one year high of $134.79.

BlueLinx announced that its Board of Directors has initiated a stock buyback program on Tuesday, July 29th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the construction company to buy up to 8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Benchmark decreased their target price on shares of BlueLinx from $110.00 to $83.00 and set a "buy" rating for the company in a research note on Friday, August 1st. DA Davidson set a $75.00 target price on shares of BlueLinx and gave the company a "neutral" rating in a research note on Monday, August 4th. Finally, Wall Street Zen downgraded shares of BlueLinx from a "hold" rating to a "sell" rating in a research note on Friday, July 18th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $91.00.

BlueLinx Company 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.