Builders FirstSource (NYSE:BLDR) Downgraded by StockNews.com to Hold

Builders FirstSource (NYSE:BLDR) was downgraded by research analysts at StockNews.com from a “buy” rating to a “hold” rating in a research note issued on Wednesday.

Other equities research analysts have also recently issued reports about the company. DA Davidson raised their target price on Builders FirstSource from $169.00 to $175.00 and gave the company a “neutral” rating in a research report on Wednesday. Jefferies Financial Group raised their target price on Builders FirstSource from $185.00 to $223.00 and gave the company a “buy” rating in a research report on Wednesday, October 9th. B. Riley dropped their target price on Builders FirstSource from $197.00 to $187.00 and set a “buy” rating on the stock in a research report on Wednesday, August 7th. The Goldman Sachs Group assumed coverage on Builders FirstSource in a research report on Thursday, October 10th. They set a “buy” rating and a $225.00 target price on the stock. Finally, Loop Capital raised their target price on Builders FirstSource from $190.00 to $230.00 and gave the company a “buy” rating in a research report on Friday, September 20th. Five research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $206.88.

Builders FirstSource Stock Performance

Shares of NYSE BLDR traded down $4.21 during trading on Wednesday, reaching $176.78. 3,329,234 shares of the company traded hands, compared to its average volume of 1,577,671. The firm’s fifty day simple moving average is $184.58 and its 200 day simple moving average is $168.44. The stock has a market cap of $20.59 billion, a P/E ratio of 15.52, a PEG ratio of 10.15 and a beta of 2.08. Builders FirstSource has a 12-month low of $120.80 and a 12-month high of $214.70. The company has a current ratio of 1.83, a quick ratio of 1.14 and a debt-to-equity ratio of 0.88.

Builders FirstSource (NYSE:BLDR) last released its quarterly earnings data on Tuesday, November 5th. The company reported $3.07 earnings per share for the quarter, missing analysts’ consensus estimates of $3.09 by ($0.02). The company had revenue of $4.23 billion for the quarter, compared to analysts’ expectations of $4.44 billion. Builders FirstSource had a net margin of 8.25% and a return on equity of 37.05%. The business’s quarterly revenue was down 6.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $4.24 EPS. As a group, research analysts anticipate that Builders FirstSource will post 11.69 earnings per share for the current fiscal year.

Builders FirstSource announced that its board has initiated a stock buyback program on Tuesday, August 6th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.3% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Craig Arthur Steinke sold 30,000 shares of the business’s stock in a transaction that occurred on Thursday, August 8th. The stock was sold at an average price of $153.68, for a total transaction of $4,610,400.00. Following the transaction, the director now directly owns 95,333 shares in the company, valued at $14,650,775.44. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in BLDR. Baillie Gifford & Co. acquired a new position in shares of Builders FirstSource during the 3rd quarter worth approximately $267,132,000. Diamond Hill Capital Management Inc. purchased a new stake in shares of Builders FirstSource during the 3rd quarter valued at approximately $255,867,000. Massachusetts Financial Services Co. MA raised its position in shares of Builders FirstSource by 339.8% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 1,180,358 shares of the company’s stock valued at $163,373,000 after buying an additional 911,990 shares during the period. Robeco Institutional Asset Management B.V. raised its position in shares of Builders FirstSource by 109.7% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 904,600 shares of the company’s stock valued at $175,366,000 after buying an additional 473,238 shares during the period. Finally, Bessemer Group Inc. raised its position in shares of Builders FirstSource by 477,028.7% during the 1st quarter. Bessemer Group Inc. now owns 448,501 shares of the company’s stock valued at $93,535,000 after buying an additional 448,407 shares during the period. 95.53% of the stock is currently owned by institutional investors and hedge funds.

Builders FirstSource Company Profile

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.