BlueLinx (NYSE:BXC) Stock Price Breaks Below 50-Day Moving Average - Should You Sell?

Key Points

• BlueLinx shares fell below their 50-day moving average, trading as low as $71.49 and last at $72.64, versus a 50-day average of $76.14.
• Analyst opinions are mixed: one Buy, three Holds and one Sell, giving the stock an average Hold rating and an $83.50 average price target.
• In its latest quarter, BlueLinx reported EPS of $0.68, above the $0.60 estimate, while revenue of $812.61 million came in slightly below expectations.

BlueLinx Holdings Inc. (NYSE:BXC - Get Free Report)'s share price passed below its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $76.14 and traded as low as $71.49. BlueLinx shares last traded at $72.6350, with a volume of 331,728 shares trading hands.

Analyst Ratings Changes

BXC has been the subject of a number of research analyst reports. Wall Street Zen raised shares of BlueLinx from a "hold" rating to a "buy" rating in a report on Sunday. Benchmark boosted their price objective on shares of BlueLinx from $75.00 to $83.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Weiss Ratings reissued a "sell (d)" rating on shares of BlueLinx in a research report on Monday, August 17th. Citizens Jmp assumed coverage on BlueLinx in a research report on Thursday, September 24th. They issued a "market perform" rating on the stock. Finally, Citigroup initiated coverage on BlueLinx in a research note on Thursday, September 24th. They issued a "market perform" rating for the company. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, BlueLinx presently has an average rating of "Hold" and an average target price of $83.50.

BlueLinx Stock Performance

• Blackstone NYSE: BX Stock a Buy After an Impressive Q3

The business's 50-day simple moving average is $76.14 and its two-hundred day simple moving average is $65.02. The firm has a market cap of $570.91 million, a price-to-earnings ratio of -290.53 and a beta of 1.47. The company has a quick ratio of 2.59, a current ratio of 4.01 and a debt-to-equity ratio of 0.95.

BlueLinx (NYSE:BXC - Get Free Report) last issued its quarterly earnings data on Tuesday, November 3rd. The construction company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.60 by $0.08. BlueLinx had a positive return on equity of 0.13% and a negative net margin of 0.06%. The company had revenue of $812.61 million for the quarter, compared to analyst estimates of $814.17 million. As a group, sell-side analysts expect that BlueLinx Holdings Inc. will post 0.97 earnings per share for the current fiscal year.

Institutional Trading of BlueLinx

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP raised its holdings in shares of BlueLinx by 0.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 512,594 shares of the construction company's stock worth $27,771,000 after acquiring an additional 2,008 shares during the period. Punch & Associates Investment Management Inc. boosted its position in shares of BlueLinx by 2.1% during the 1st quarter. Punch & Associates Investment Management Inc. now owns 321,874 shares of the construction company's stock valued at $17,439,000 after acquiring an additional 6,538 shares during the last quarter. Empowered Funds LLC grew its holdings in shares of BlueLinx by 42.7% in the first quarter. Empowered Funds LLC now owns 110,018 shares of the construction company's stock valued at $5,961,000 after purchasing an additional 32,943 shares during the period. Heartland Advisors Inc. grew its holdings in shares of BlueLinx by 22.8% in the first quarter. Heartland Advisors Inc. now owns 92,075 shares of the construction company's stock valued at $4,989,000 after purchasing an additional 17,075 shares during the period. Finally, Sei Investments Co. grew its holdings in shares of BlueLinx by 92.1% in the first quarter. Sei Investments Co. now owns 59,592 shares of the construction company's stock valued at $3,229,000 after purchasing an additional 28,571 shares during the period. 90.83% of the stock is owned by institutional investors and hedge funds.

About BlueLinx

BlueLinx Holdings Inc is a specialty distributor of building products in the United States. The company supplies materials used in residential and commercial construction, repair and remodeling, and industrial applications.

Its product portfolio includes structural products such as lumber, plywood, oriented strand board and engineered wood, as well as specialty products including siding, insulation, roofing materials, gypsum wallboard, millwork and related building components. BlueLinx also provides services such as product sourcing, inventory management, job-site delivery and other supply-chain support.

BlueLinx serves professional contractors, specialty dealers, home improvement retailers, industrial manufacturers and producers of manufactured housing through a nationwide distribution network.

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