Penn Capital Management Company LLC Invests $347,000 in BlueLinx Holdings Inc. $BXC

Key Points

• Penn Capital Management Company LLC invested approximately $347,000 in BlueLinx Holdings Inc., acquiring 4,630 shares during the first quarter.
• BlueLinx's stock recently saw a 7.3% increase in value, with a market capitalization of $665.72 million and a P/E ratio of 25.04.
• The company's Board of Directors has authorized a $50 million share buyback plan, signaling potential management confidence in the stock's valuation.

Penn Capital Management Company LLC bought a new position in shares of BlueLinx Holdings Inc. (NYSE:BXC - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 4,630 shares of the construction company's stock, valued at approximately $347,000. Penn Capital Management Company LLC owned 0.06% of BlueLinx as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently added to or reduced their stakes in the company. Nuveen LLC acquired a new position in BlueLinx during the 1st quarter worth approximately $59,497,000. Charles Schwab Investment Management Inc. lifted its position 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 worth $17,923,000 after purchasing an additional 39,166 shares during the last quarter. Raymond James Financial Inc. acquired a new position in shares of BlueLinx during the fourth quarter worth $3,451,000. Third Avenue Management LLC purchased a new position in BlueLinx in the first quarter valued at $2,240,000. Finally, Jacobs Levy Equity Management Inc. acquired a new stake in BlueLinx in the fourth quarter valued at $1,608,000. Hedge funds and other institutional investors own 90.83% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Wall Street Zen cut BlueLinx from a "hold" rating to a "sell" rating in a research report on Friday, July 18th. Benchmark lowered their price target on BlueLinx from $110.00 to $83.00 and set a "buy" rating for the company in a report on Friday, August 1st. Finally, DA Davidson set a $75.00 price target on shares of BlueLinx and gave the company a "neutral" rating in a research note on Monday, August 4th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $91.00.

BlueLinx Stock Up 7.3%

BlueLinx stock opened at $84.3750 on Friday. The company has a market capitalization of $665.72 million, a P/E ratio of 25.04 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. BlueLinx Holdings Inc. has a fifty-two week low of $63.13 and a fifty-two week high of $134.79. The stock has a 50-day simple moving average of $77.05 and a 200-day simple moving average of $76.48.

BlueLinx announced that its Board of Directors has authorized a share buyback plan on Tuesday, July 29th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the construction company to buy up to 8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its shares are undervalued.

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.

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