Builders FirstSource (NYSE:BLDR) Trading 10.5% Higher – Should You Buy?

Builders FirstSource, Inc. (NYSE:BLDR) traded up 10.5% during trading on Wednesday . The stock traded as high as $85.40 and last traded at $84.7760. Approximately 291,741 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 2,452,264 shares. The stock had previously closed at $76.73.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. UBS Group reduced their price target on shares of Builders FirstSource from $143.00 to $122.00 and set a “buy” rating for the company in a research report on Friday, May 1st. DA Davidson lowered their price objective on Builders FirstSource from $111.00 to $84.00 and set a “neutral” rating on the stock in a report on Friday, May 1st. Barclays cut their price objective on Builders FirstSource from $114.00 to $93.00 and set an “overweight” rating for the company in a research note on Friday, May 1st. Weiss Ratings cut Builders FirstSource from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday, June 16th. Finally, William Blair started coverage on Builders FirstSource in a research report on Thursday, February 26th. They issued an “outperform” rating on the stock. Nine investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $101.88.

Builders FirstSource Trading Up 11.0%

The business has a fifty day moving average price of $78.79 and a two-hundred day moving average price of $95.50. The company has a current ratio of 1.76, a quick ratio of 1.09 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $9.16 billion, a PE ratio of 32.62, a PEG ratio of 1.85 and a beta of 1.44.

Builders FirstSource (NYSE:BLDR) last posted its earnings results on Thursday, April 30th. The company reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.12). Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The company had revenue of $3.29 billion during the quarter, compared to analyst estimates of $3.17 billion. During the same quarter last year, the business posted $1.51 EPS. The firm’s revenue for the quarter was down 10.1% on a year-over-year basis. Analysts expect that Builders FirstSource, Inc. will post 4.26 EPS for the current fiscal year.

Builders FirstSource announced that its Board of Directors has authorized a stock buyback program on Thursday, April 30th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 5.4% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Builders FirstSource

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Capital International Investors purchased a new position in Builders FirstSource during the 3rd quarter worth $429,640,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Builders FirstSource by 99,084.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company’s stock worth $230,634,000 after acquiring an additional 2,239,301 shares during the period. Franklin Resources Inc. raised its holdings in Builders FirstSource by 2,498.8% during the third quarter. Franklin Resources Inc. now owns 1,854,525 shares of the company’s stock worth $224,861,000 after purchasing an additional 1,783,164 shares in the last quarter. Sands Capital Management LLC raised its holdings in Builders FirstSource by 139.1% during the third quarter. Sands Capital Management LLC now owns 2,430,902 shares of the company’s stock worth $294,747,000 after purchasing an additional 1,414,129 shares in the last quarter. Finally, Victory Capital Management Inc. lifted its position in Builders FirstSource by 235.1% in the third quarter. Victory Capital Management Inc. now owns 1,893,483 shares of the company’s stock valued at $229,585,000 after purchasing an additional 1,328,363 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 is a leading supplier of structural and value-added building products and services to professional contractors, homebuilders and remodelers. The company provides a comprehensive range of materials and prefabricated components that support all phases of residential construction, from site development and framing to finishing and installation.

The company’s core offerings include lumber and lumber sheet goods, windows and doors, millwork, roofing and siding, and engineered wood products such as roof and floor trusses.