Builders FirstSource (NYSE:BLDR) Hits New 12-Month Low – Here’s Why

Builders FirstSource, Inc. (NYSE:BLDR) shares reached a new 52-week low on Tuesday . The company traded as low as $102.60 and last traded at $105.55, with a volume of 2245143 shares trading hands. The stock had previously closed at $107.68.

Analyst Ratings Changes

Several equities analysts have recently issued reports on BLDR shares. Stifel Nicolaus reduced their price objective on Builders FirstSource from $125.00 to $118.00 and set a “hold” rating for the company in a research report on Monday, May 5th. UBS Group reduced their price target on Builders FirstSource from $180.00 to $163.00 and set a “buy” rating for the company in a research report on Friday, May 2nd. Truist Financial lowered their price target on Builders FirstSource from $220.00 to $180.00 and set a “buy” rating on the stock in a report on Friday, February 21st. Stephens cut their price objective on shares of Builders FirstSource from $145.00 to $140.00 and set an “overweight” rating on the stock in a research note on Friday, May 2nd. Finally, Benchmark decreased their target price on shares of Builders FirstSource from $200.00 to $170.00 and set a “buy” rating for the company in a research report on Friday, February 21st. Six research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $167.58.

Builders FirstSource Stock Performance

The stock has a market cap of $12.45 billion, a price-to-earnings ratio of 12.44, a price-to-earnings-growth ratio of 0.80 and a beta of 1.79. The company’s 50-day simple moving average is $116.00 and its 200-day simple moving average is $140.55. The company has a quick ratio of 1.16, a current ratio of 1.77 and a debt-to-equity ratio of 0.86.

Builders FirstSource (NYSE:BLDR) last released its quarterly earnings data on Thursday, May 1st. The company reported $1.51 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.01. The business had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.67 billion. Builders FirstSource had a return on equity of 30.54% and a net margin of 6.57%. The company’s revenue was down 6.0% compared to the same quarter last year. During the same period last year, the company posted $2.65 EPS. Analysts predict that Builders FirstSource, Inc. will post 11.59 EPS for the current fiscal year.

Builders FirstSource declared that its Board of Directors has authorized a share buyback program on Thursday, May 1st that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 3.9% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other Builders FirstSource news, Director Paul S. Levy bought 283,517 shares of Builders FirstSource stock in a transaction dated Thursday, May 8th. The stock was bought at an average price of $111.21 per share, for a total transaction of $31,529,925.57. Following the completion of the acquisition, the director now directly owns 1,672,687 shares of the company’s stock, valued at approximately $186,019,521.27. This trade represents a 20.41% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Dirkson R. Charles purchased 5,000 shares of the stock in a transaction dated Tuesday, May 27th. The shares were acquired at an average price of $109.67 per share, for a total transaction of $548,350.00. Following the acquisition, the director now directly owns 5,000 shares of the company’s stock, valued at $548,350. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders have purchased 505,000 shares of company stock worth $56,032,120. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Builders FirstSource

Several institutional investors and hedge funds have recently bought and sold shares of the business. FMR LLC grew its holdings in shares of Builders FirstSource by 7.3% during the 4th quarter. FMR LLC now owns 10,898,366 shares of the company’s stock valued at $1,557,703,000 after acquiring an additional 740,214 shares in the last quarter. Wellington Management Group LLP boosted its position in Builders FirstSource by 42.6% during the first quarter. Wellington Management Group LLP now owns 3,217,125 shares of the company’s stock valued at $401,948,000 after purchasing an additional 960,603 shares during the last quarter. Invesco Ltd. grew its stake in Builders FirstSource by 11.8% in the first quarter. Invesco Ltd. now owns 2,519,461 shares of the company’s stock valued at $314,781,000 after purchasing an additional 265,873 shares in the last quarter. Diamond Hill Capital Management Inc. increased its position in Builders FirstSource by 16.8% in the 1st quarter. Diamond Hill Capital Management Inc. now owns 2,270,362 shares of the company’s stock worth $283,659,000 after purchasing an additional 326,923 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of Builders FirstSource by 0.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,244,449 shares of the company’s stock worth $280,387,000 after purchasing an additional 6,453 shares in the last quarter. Hedge funds and other institutional investors own 95.53% of the company’s stock.

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.