Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Noteworthy Insider Buying at This Biopharmaceutical Company and 2 Other Battered Companies

BMC Stock Holdings Inc. (NASDAQ:STCK) is another company that saw one of its Directors purchase shares this past week. Director James O’Leary bought two blocks of 5,000 shares on Wednesday at a weighted average price of $13.83, lifting his overall holding to 24,107 shares. This purchase comes nearly four months after Stock Building Supply Holdings merged with a privately-held building materials provider, called Building Materials Holding Corporation, to create a diversified lumber and building materials (LBM) distributor and solutions provider named BMC Stock Holdings.

The freshly-combined company expects to achieve run-rate cost synergies of $20 million-to-$25 million within the first year of the completion of its merger and $40 million-to-$50 million by the fourth quarter of 2017. As revealed by the U.S Census Bureau, multi-family housing starts in the nation reached 400,000 in 2015, increasing from 360,000 in 2014 and 310,000 in 2013. The continued tightening in the U.S labor market and sustained wage growth, as well as strengthening builder confidence and consumer sentiment, are anticipated to support new residential housing market growth throughout 2016. McGraw-Hill Construction anticipates multi-family housing starts to increase by 5% in 2016, but recent data suggests that this rate growth is not yet achievable. Housing starts for the multi-family segment rose to 356,000 in February. Even so, U.S housing starts recovered more-than-expected last month, registering their highest level in the past five months. This means that BMC Stock Holdings might be well-positioned to achieve cost synergies and attractive top-line growth without experiencing pressure from previously-anticipated worsening market conditions. A total of 15 hedge funds in our database had stakes in BMC at the end of 2015, compared to 11 registered at the end of the previous quarter. Shares of newly-formed BMC Stock Holdings are down by 13% year-to-date, which has persuaded some analysts to rate the stock as being undervalued. D.E. Shaw & Co. L.P., founded by David E. Shaw, owns 2.23 million shares of BMC Stock Holdings Inc. (NASDAQ:STCK) as of December 31.

Follow Bmc Stock Holdings Inc. (NASDAQ:BMCH)
Trade (NASDAQ:BMCH) Now!

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.