Boise Cascade (NYSE:BCC) Shares Gap Down Following Weak Earnings

Boise Cascade (NYSE:BCC) shares gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $134.26, but opened at $127.90. Boise Cascade shares last traded at $130.60, with a volume of 29,942 shares.

The construction company reported $2.33 EPS for the quarter, missing analysts’ consensus estimates of $2.37 by ($0.04). Boise Cascade had a net margin of 6.60% and a return on equity of 20.17%. The firm had revenue of $1.71 billion during the quarter, compared to analysts’ expectations of $1.72 billion. During the same period in the prior year, the company posted $3.58 earnings per share. The company’s revenue for the quarter was down 6.6% on a year-over-year basis.

Boise Cascade Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 18th. Shareholders of record on Monday, December 2nd will be paid a $0.21 dividend. The ex-dividend date of this dividend is Monday, December 2nd. This represents a $0.84 annualized dividend and a yield of 0.61%. Boise Cascade’s dividend payout ratio is presently 7.32%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on BCC. BMO Capital Markets lifted their target price on shares of Boise Cascade from $130.00 to $136.00 and gave the company a “market perform” rating in a report on Tuesday, October 22nd. Truist Financial raised their price objective on shares of Boise Cascade from $154.00 to $161.00 and gave the company a “buy” rating in a research report on Tuesday, October 15th. Bank of America raised their price target on Boise Cascade from $120.00 to $124.00 and gave the company an “underperform” rating in a report on Thursday, September 12th. StockNews.com raised Boise Cascade from a “hold” rating to a “buy” rating in a report on Tuesday, October 8th. Finally, The Goldman Sachs Group decreased their target price on shares of Boise Cascade from $140.00 to $122.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 10th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Boise Cascade presently has an average rating of “Hold” and an average price target of $139.60.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Westwood Holdings Group Inc. grew its position in shares of Boise Cascade by 107.7% during the second quarter. Westwood Holdings Group Inc. now owns 1,117,914 shares of the construction company’s stock worth $133,278,000 after buying an additional 579,759 shares in the last quarter. Marshall Wace LLP lifted its stake in Boise Cascade by 2,978.4% during the second quarter. Marshall Wace LLP now owns 191,047 shares of the construction company’s stock worth $22,777,000 after purchasing an additional 184,841 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Boise Cascade by 293.4% during the first quarter. Price T Rowe Associates Inc. MD now owns 236,980 shares of the construction company’s stock worth $36,346,000 after purchasing an additional 176,738 shares during the last quarter. Skandinaviska Enskilda Banken AB publ lifted its stake in Boise Cascade by 46.0% in the second quarter. Skandinaviska Enskilda Banken AB publ now owns 383,000 shares of the construction company’s stock valued at $45,661,000 after buying an additional 120,600 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC lifted its stake in Boise Cascade by 56.8% in the third quarter. Allspring Global Investments Holdings LLC now owns 89,163 shares of the construction company’s stock valued at $12,570,000 after buying an additional 32,303 shares during the last quarter. 96.18% of the stock is currently owned by hedge funds and other institutional investors.

Boise Cascade Price Performance

The company has a quick ratio of 2.08, a current ratio of 3.28 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $5.47 billion, a P/E ratio of 12.07 and a beta of 1.53. The business has a 50 day simple moving average of $136.14 and a 200-day simple moving average of $132.51.

About Boise Cascade

Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine shop lumber and appearance grade boards.