Insider Decision: Ying Sue Taylor Offloads $170K Worth Of Boise Cascade Stock

On December 6, a recent SEC filing unveiled that Ying Sue Taylor, Board Member at Boise Cascade BCC made an insider sell.

What Happened: Taylor's decision to sell 1,503 shares of Boise Cascade was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $170,579.

The latest update on Thursday morning shows Boise Cascade shares down by 0.0%, trading at $111.16.

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.

Boise Cascade's Economic Impact: An Analysis

Revenue Growth: Boise Cascade's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -14.86%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Interpreting Earnings Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 21.38%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Boise Cascade's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.61.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.22.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The P/E ratio of 8.8 is lower than the industry average, implying a discounted valuation for Boise Cascade's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.65 is lower than the industry average, implying a discounted valuation for Boise Cascade's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 4.4 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Deciphering Transaction Codes in Insider Filings

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

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

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