It was reported on November 13, that Troy Little, EVP at Boise Cascade BCC executed a significant insider sell, according to an SEC filing.

What Happened: Little opted to sell 1,192 shares of Boise Cascade, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction’s total worth stands at $168,590.

Boise Cascade shares are trading up 1.0% at $143.98 at the time of this writing on Thursday morning.

About Boise Cascade

Boise Cascade Co is a producer of engineered wood products (EWP) and plywood. The firm operates in two segments namely Wood Products and Building Materials Distribution. Wood Products segment manufactures EWP, consisting of laminated veneer lumber (LVL), I-joists, and laminated beams. The Building Materials Distribution segment is engaged in the wholesale of building materials. It distributes products such as plywood, OSB, and lumber items such as siding, doors, metal products, insulation, and roofing, EWP and others. The company generates a majority of its revenue from the Building Material Distribution segment.

Financial Insights: Boise Cascade

Revenue Growth: Boise Cascade’s revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -6.58%. This indicates a decrease in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Evaluating Earnings Performance:

• Gross Margin: With a low gross margin of 19.72%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Boise Cascade’s EPS reflects a decline, falling below the industry average with a current EPS of 2.34.

Debt Management: Boise Cascade’s debt-to-equity ratio is below the industry average. With a ratio of 0.24, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 13.96 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.83, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 7.37, Boise Cascade could be considered undervalued.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Unlocking the Meaning of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Boise Cascade’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.