Builders FirstSource (NYSE:BLDR) Cut to Hold at StockNews.com

StockNews.com downgraded shares of Builders FirstSource (NYSE:BLDR) from a buy rating to a hold rating in a research report sent to investors on Tuesday morning.

Other equities analysts have also issued research reports about the stock. Truist Financial upgraded shares of Builders FirstSource from a “hold” rating to a “buy” rating and increased their target price for the stock from $165.00 to $220.00 in a research report on Monday, September 16th. Barclays lifted their price objective on shares of Builders FirstSource from $182.00 to $211.00 and gave the company an “overweight” rating in a research note on Wednesday, October 9th. Oppenheimer reaffirmed an “outperform” rating and issued a $225.00 price target on shares of Builders FirstSource in a report on Tuesday, October 29th. B. Riley decreased their price objective on Builders FirstSource from $197.00 to $187.00 and set a “buy” rating on the stock in a research note on Wednesday, August 7th. Finally, Wedbush reaffirmed an “outperform” rating and set a $230.00 target price on shares of Builders FirstSource in a report on Wednesday, November 6th. Five equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $206.47.

Builders FirstSource Price Performance

Builders FirstSource stock opened at $180.80 on Tuesday. Builders FirstSource has a 52 week low of $129.80 and a 52 week high of $214.70. The company’s 50 day moving average price is $185.68 and its two-hundred day moving average price is $168.35. The stock has a market cap of $20.81 billion, a P/E ratio of 17.70, a P/E/G ratio of 1.00 and a beta of 2.08. The company has a quick ratio of 1.16, a current ratio of 1.77 and a debt-to-equity ratio of 0.83.

Builders FirstSource (NYSE:BLDR) last announced its earnings results on Tuesday, November 5th. The company reported $3.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.09 by ($0.02). The business had revenue of $4.23 billion for the quarter, compared to analysts’ expectations of $4.44 billion. Builders FirstSource had a net margin of 7.40% and a return on equity of 33.55%. The company’s revenue for the quarter was down 6.7% compared to the same quarter last year. During the same period in the prior year, the business earned $4.24 earnings per share. On average, equities analysts predict that Builders FirstSource will post 11.56 earnings per share for the current year.

Builders FirstSource announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, August 6th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to purchase up to 5.3% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Builders FirstSource news, Director Cleveland A. Christophe sold 10,000 shares of the firm’s stock in a transaction dated Thursday, November 7th. The shares were sold at an average price of $178.41, for a total value of $1,784,100.00. Following the completion of the sale, the director now directly owns 33,083 shares in the company, valued at $5,902,338.03. This trade represents a 23.21 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Builders FirstSource

Hedge funds have recently added to or reduced their stakes in the company. Forsta AP Fonden lifted its holdings in Builders FirstSource by 12.1% in the third quarter. Forsta AP Fonden now owns 26,800 shares of the company’s stock valued at $5,195,000 after acquiring an additional 2,900 shares during the period. Cetera Investment Advisers increased its holdings in Builders FirstSource by 762.2% during the first quarter. Cetera Investment Advisers now owns 50,982 shares of the company’s stock valued at $10,632,000 after buying an additional 45,069 shares during the last quarter. Janus Henderson Group PLC increased its holdings in Builders FirstSource by 21.1% during the first quarter. Janus Henderson Group PLC now owns 20,013 shares of the company’s stock valued at $4,173,000 after buying an additional 3,483 shares during the last quarter. Raymond James Financial Services Advisors Inc. raised its position in Builders FirstSource by 18.6% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 115,995 shares of the company’s stock worth $16,055,000 after acquiring an additional 18,223 shares during the period. Finally, Acadian Asset Management LLC purchased a new position in shares of Builders FirstSource during the 1st quarter worth $3,448,000. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

About Builders FirstSource

Builders FirstSource, Inc, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.