Builders FirstSource (NYSE:BLDR) Given New $58.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo raised its Builders FirstSource price target from $55 to $58 while maintaining an “equal weight” rating, implying roughly 9% downside from the prior close.
• Analyst sentiment remains cautious: the consensus rating is “Hold,” with 16 Holds, seven Buys and two Sells, and an average price target of $75.90.
• Builders FirstSource exceeded quarterly earnings and revenue expectations, reporting EPS of $1.51 and revenue of $3.85 billion, but revenue declined 2.2% year over year and net income fell substantially, reflecting weaker underlying profitability.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price target raised by analysts at Wells Fargo & Company from $55.00 to $58.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective indicates a potential downside of 8.96% from the company's previous close.

Several other analysts have also commented on the company. Citigroup reaffirmed a "market perform" rating on shares of Builders FirstSource in a report on Thursday, October 8th. Deutsche Bank Aktiengesellschaft set a $66.00 price target on Builders FirstSource in a research report on Friday, July 31st. Loop Capital lowered Builders FirstSource from a "buy" rating to a "hold" rating and set a $62.00 price objective on the stock. in a report on Monday. Benchmark cut their price objective on Builders FirstSource from $105.00 to $100.00 and set a "buy" rating for the company in a research report on Thursday, July 23rd. Finally, William Blair downgraded Builders FirstSource from an "outperform" rating to a "market perform" rating in a research note on Thursday, October 22nd. Seven investment analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $75.90.

Builders FirstSource Stock Up 1.0%

Builders FirstSource stock traded up $0.65 during midday trading on Friday, reaching $63.71. The company's stock had a trading volume of 2,398,092 shares, compared to its average volume of 2,543,823. The stock's 50-day simple moving average is $59.39 and its 200-day simple moving average is $81.01. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.79 and a quick ratio of 1.09. Builders FirstSource has a 52-week low of $49.67 and a 52-week high of $131.50. The stock has a market capitalization of $6.85 billion, a P/E ratio of 69.94, a PEG ratio of 1.91 and a beta of 1.45.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $1.51 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.45. The business had revenue of $3.85 billion for the quarter, compared to analyst estimates of $3.75 billion. Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%. The company's revenue was down 2.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.88 earnings per share. On average, sell-side analysts expect that Builders FirstSource will post 2.99 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Harbor Island Capital LLC purchased a new position in Builders FirstSource in the third quarter valued at about $12,524,000. Nisa Investment Advisors LLC increased its holdings in Builders FirstSource by 40,460.9% during the 3rd quarter. Nisa Investment Advisors LLC now owns 732,529 shares of the company's stock worth $41,761,000 after purchasing an additional 730,723 shares during the last quarter. BlackRock Inc. acquired a new position in shares of Builders FirstSource in the 2nd quarter valued at approximately $700,934,000. Louisbourg Investments Inc. acquired a new position in shares of Builders FirstSource in the 3rd quarter valued at approximately $1,949,000. Finally, CWA Asset Management Group LLC acquired a new position in shares of Builders FirstSource in the 3rd quarter valued at approximately $829,000. 95.53% of the stock is owned by hedge funds and other institutional investors.

Builders FirstSource News Roundup

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Adjusted earnings and revenue exceeded expectations. BLDR reported adjusted EPS of $1.51 versus the roughly $1.06–$1.12 analyst consensus, while revenue reached $3.85 billion, ahead of the $3.75 billion estimate. Builders FirstSource Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management maintained its earnings outlook midpoint. Builders FirstSource continues to expect 2026 net sales of $14.2 billion to $14.6 billion and adjusted EBITDA of $1.075 billion to $1.125 billion. The company also expects $60 million–$70 million in productivity savings, supporting the view that cost controls and market-share gains can offset weak housing demand. Builders FirstSource jumps on earnings beat and steady 2026 outlook
• Neutral Sentiment: Analyst views are divided. Truist raised its target to $75 and maintained a buy rating, while Barclays and KeyCorp retained overweight ratings with targets of $70 and $80, respectively. However, UBS cut its target to $75 from $88 while keeping a buy rating. UBS Adjusts Price Target on Builders FirstSource
• Negative Sentiment: Underlying profitability deteriorated. GAAP net income fell to $60.4 million from $122.4 million a year earlier, revenue declined 2.2%, gross profit dropped 10.6%, and gross margin contracted 260 basis points to 27.8%. Royal Bank of Canada lowered its target to $56 and kept a sector-perform rating, signaling downside risk if housing demand remains soft.

Builders FirstSource Company Profile

Builders FirstSource, Inc is a supplier of building materials, manufactured components and construction services for professional homebuilders, remodelers and other construction customers in the United States. The company provides products used throughout the residential construction process, from structural framing to interior and exterior finishes.

Its offerings include lumber and engineered wood products, roof and floor trusses, wall panels, prefabricated components, windows, doors, millwork, cabinets, roofing, siding, insulation, gypsum and related hardware.

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