Why has the Boral (ASX:BLD) share price jumped 5% since the start of this month?

There's been no price-sensitive news out of Boral but it has made 2 announcements

The Boral Limited (ASX: BLD) share price is having a good run in October, potentially spurred on by the company's continued divestment strategy.

Since its first close of this month, Boral's stock has gained 5.5%. At the time of writing, the Boral share price is $6.31, 0.64% higher than its previous closing price.

Let's take a look at the news that might have helped to boost the construction supply company's shares lately.

One female and two male construction workers laugh on site.

Image source: Getty Images

The month so far for Boral

The first news from Boral this month hit the ASX on 4 October.

Then, Boral announced it had completed the divestment of its North American building products business and its Australian timber business. The sales saw the company's bank balance bolstered by US$2.15 billion and $64.5 million respectively.

Boral plans to use the funds to pay back some of its loans and help it return up to $3 billion to shareholders.

Despite the release being marked as non-price sensitive, the Boral share price finished the day 4.1% higher than it had the last.

The next time the market heard from Boral was on 7 October when it announced it had sold its half of the North American Meridian Brick business. This time, Boral's wallet was weighed down by an extra US$125 million.

The announcement of the sale was once again marked non-price sensitive. However, this time, the Boral share price didn't move far.

It gained 0.5% over the course of the day. Since then, it's been in and out of the red, ultimately gaining another 0.5%.

Boral share price snapshot

It has been a big year so far for Boral. After a messy battle, it was taken over by Seven Group Holdings Ltd (ASX: SVW) in July. After the takeover, the company's now-former chair was quickly ousted and replaced with Seven's CEO and managing director Ryan Stokes.

Despite the drama, the Boral share price has been flourishing. It has gained 26% since the start of 2021 and 29% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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