UBS Group Issues Pessimistic Forecast for Builders FirstSource (NYSE:BLDR) Stock Price

Key Points

• UBS Group lowered its Builders FirstSource price target from $88 to $75 while maintaining a “buy” rating, implying approximately 15.8% upside from the prior close.
• Analyst sentiment is mixed: the stock has a consensus “hold” rating and a $75.40 average price target, with seven buys, sixteen holds, and two sells.
• Builders FirstSource exceeded quarterly earnings expectations, reporting $1.51 EPS versus the $1.06 consensus and $3.85 billion in revenue, though revenue declined 2.2% year over year.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price target reduced by UBS Group from $88.00 to $75.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. UBS Group's price target points to a potential upside of 15.81% from the stock's previous close.

Other research analysts have also issued reports about the company. Melius Research started coverage on Builders FirstSource in a report on Tuesday, October 6th. They set a "sell" rating and a $52.00 target price on the stock. DA Davidson set a $68.00 price target on shares of Builders FirstSource in a research report on Friday, July 31st. Citigroup reissued a "market perform" rating on shares of Builders FirstSource in a report on Thursday, October 8th. Barclays cut their target price on Builders FirstSource from $81.00 to $70.00 and set an "overweight" rating on the stock in a report on Friday. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Builders FirstSource in a research report on Monday, October 19th. Seven analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $75.40.

Builders FirstSource Stock Performance

BLDR opened at $64.76 on Friday. The business has a 50 day moving average price of $59.28 and a two-hundred day moving average price of $80.72. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.85 and a quick ratio of 1.14. The company has a market capitalization of $6.97 billion, a price-to-earnings ratio of 175.03, a price-to-earnings-growth ratio of 2.15 and a beta of 1.41. Builders FirstSource has a 1-year low of $49.67 and a 1-year high of $131.50.

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 (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.45. Builders FirstSource had a return on equity of 10.77% and a net margin of 0.28%. The company had revenue of $3.85 billion for the quarter, compared to analysts' expectations of $3.75 billion. During the same period last year, the firm earned $1.88 EPS. The firm's revenue for the quarter was down 2.2% on a year-over-year basis. Research analysts predict that Builders FirstSource will post 3.09 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of BLDR. BlackRock Inc. bought a new position in Builders FirstSource during the 2nd quarter worth about $700,934,000. Dimensional Fund Advisors LP boosted its position in shares of Builders FirstSource by 12.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,967,744 shares of the company's stock worth $244,301,000 after buying an additional 325,935 shares during the period. Diamond Hill Capital Management LLC Investment Advisor bought a new position in shares of Builders FirstSource during the second quarter worth about $134,908,000. Bank of America Corp DE acquired a new stake in Builders FirstSource in the 2nd quarter valued at approximately $83,832,000. Finally, Fort Washington Investment Advisors Inc. OH acquired a new stake in Builders FirstSource in the 3rd quarter valued at approximately $48,738,000. Institutional investors own 95.53% of the company's stock.

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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