Boise Cascade (NYSE:BCC) Share Price Crosses Below 200 Day Moving Average - Should You Sell?

Key Points

• Boise Cascade shares fell below their 200-day moving average, trading as low as $72.98 versus the $75.97 average, signaling recent technical weakness.
• Analyst sentiment is mixed: three analysts rate the stock Buy, three Hold, and one Sell. The consensus rating is Hold, with a target price of $93.60.
• The company exceeded quarterly expectations with $1.63 EPS and $1.83 billion in revenue, while raising its quarterly dividend to $0.23 per share, or $0.92 annually.

Shares of Boise Cascade, L.L.C. (NYSE:BCC - Get Free Report) crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $75.97 and traded as low as $72.98. Boise Cascade shares last traded at $73.6540, with a volume of 242,808 shares changing hands.

Analyst Ratings Changes

A number of brokerages recently commented on BCC. Wall Street Zen raised Boise Cascade from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. The Goldman Sachs Group boosted their price objective on Boise Cascade from $81.00 to $91.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. Bank of America upped their price objective on Boise Cascade from $80.00 to $81.00 and gave the company an "underperform" rating in a research note on Tuesday, July 14th. Weiss Ratings raised Boise Cascade from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, August 17th. Finally, DA Davidson lifted their target price on Boise Cascade from $92.00 to $99.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Boise Cascade currently has an average rating of "Hold" and a consensus target price of $93.60.

Boise Cascade Price Performance

The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.31 and a current ratio of 2.71. The company has a market cap of $2.57 billion, a P/E ratio of 24.97, a P/E/G ratio of 1.00 and a beta of 1.08. The firm has a 50 day moving average price of $78.74 and a two-hundred day moving average price of $75.97.

Boise Cascade (NYSE:BCC - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The construction company reported $1.63 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.23 by $0.40. The business had revenue of $1.83 billion for the quarter, compared to analysts' expectations of $1.77 billion. Boise Cascade had a return on equity of 5.41% and a net margin of 1.64%. The firm's quarterly revenue was up 5.2% compared to the same quarter last year. During the same period in the previous year, the business posted $1.64 EPS. On average, analysts predict that Boise Cascade, L.L.C. will post 3.86 EPS for the current fiscal year.

Boise Cascade Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st were given a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 1.2%. This is an increase from Boise Cascade's previous quarterly dividend of $0.22. The ex-dividend date of this dividend was Tuesday, September 1st. Boise Cascade's payout ratio is presently 31.19%.

Insider Buying and Selling

In related news, SVP Jill Twedt sold 1,250 shares of Boise Cascade stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $79.40, for a total value of $99,250.00. Following the completion of the transaction, the senior vice president directly owned 25,295 shares in the company, valued at approximately $2,008,423. The trade was a 4.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Kristopher J. Matula sold 1,930 shares of the business's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $84.58, for a total transaction of $163,239.40. Following the sale, the director directly owned 13,982 shares in the company, valued at $1,182,597.56. The trade was a 12.13% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 1.42% of the company's stock.

Hedge Funds Weigh In On Boise Cascade

A number of large investors have recently made changes to their positions in the stock. Pictet Asset Management Holding SA boosted its stake in Boise Cascade by 22.2% in the 2nd quarter. Pictet Asset Management Holding SA now owns 117,675 shares of the construction company's stock worth $9,135,000 after purchasing an additional 21,362 shares during the period. First Eagle Investment Management LLC increased its position in shares of Boise Cascade by 13.4% during the second quarter. First Eagle Investment Management LLC now owns 193,208 shares of the construction company's stock valued at $14,999,000 after buying an additional 22,900 shares during the period. Legal & General Group Plc bought a new stake in shares of Boise Cascade during the second quarter valued at about $6,737,000. BlackRock Inc. purchased a new stake in shares of Boise Cascade in the second quarter worth about $463,729,000. Finally, Medina Value Partners LLC purchased a new stake in shares of Boise Cascade in the second quarter worth about $17,858,160. 96.18% of the stock is owned by institutional investors.

About Boise Cascade

Boise Cascade Company is a manufacturer of wood products and a wholesale distributor of building materials. The company serves residential and commercial construction markets, as well as industrial and remodeling customers, primarily in the United States.

Through its Wood Products segment, Boise Cascade manufactures engineered wood products such as laminated veneer lumber, I-joists, laminated beams, plywood and related structural panels. These products are used in floors, roofs, walls and other structural applications.

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