BlueLinx Adds 10% After Announcing Share Buyback

Shares of wholesale distributor of building products BlueLinx Holdings Inc. (BXC) are up more than 10% in the morning trade on Tuesday at $61.10.

Monday the company announced that its Board has authorized a share buyback program of up to $25 million.

“Given the strong performance of our business during the past year, coupled with a favorable multi-year outlook for residential construction and home renovation markets, we believe our capital allocation strategy should prioritize a combination of organic growth investments, the acquisition of complementary assets in key target markets and an opportunistic return of capital program,” said Dwight Gibson, President and CEO of BlueLinx.

Separately, the company announced the termination of its “at-the-market” equity offering program with Jefferies LLC as sales agent.

“No shares were sold under the ATM Offering, and, upon termination, the Company will have no further obligations related to the ATM Offering, BlueLinx said.

BXC has traded in the range of $17.03- $70.38 in the last 52 weeks.

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