Bank of America Issues Pessimistic Forecast for Builders FirstSource (NYSE:BLDR) Stock Price

Key Points

• Bank of America cut its price target on Builders FirstSource from $123 to $100 and maintained a "neutral" rating, implying roughly a 12.97% upside from the stock's current price.
• The analyst consensus remains a "Hold" with a consensus target of $120.32, coming from 9 Buy, 11 Hold and 3 Sell ratings on the stock.
• Builders FirstSource missed quarterly expectations, reporting $1.12 EPS vs. $1.30 expected and revenue of $3.36 billion (down 12.1% year‑over‑year and below the $3.46 billion consensus).

Builders FirstSource (NYSE:BLDR - Get Free Report) had its target price reduced by Bank of America from $123.00 to $100.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Bank of America's price target would indicate a potential upside of 12.97% from the stock's current price.

A number of other research firms have also recently commented on BLDR. Zacks Research raised shares of Builders FirstSource from a "strong sell" rating to a "hold" rating in a report on Friday, March 20th. Robert W. Baird reduced their price objective on shares of Builders FirstSource from $135.00 to $125.00 and set a "neutral" rating for the company in a research note on Wednesday, February 18th. Stephens reiterated an "equal weight" rating and issued a $125.00 price objective on shares of Builders FirstSource in a research note on Tuesday, March 24th. Royal Bank Of Canada upgraded shares of Builders FirstSource from a "sector perform" rating to an "outperform" rating and set a $119.00 price objective for the company in a research note on Thursday, March 5th. Finally, William Blair initiated coverage on shares of Builders FirstSource in a research note on Thursday, February 26th. They issued an "outperform" rating for the company. Nine equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $120.32.

Builders FirstSource Trading Up 0.0%

NYSE:BLDR opened at $88.52 on Monday. The company has a current ratio of 1.86, a quick ratio of 1.16 and a debt-to-equity ratio of 1.02. The stock has a market capitalization of $9.79 billion, a PE ratio of 22.81, a price-to-earnings-growth ratio of 2.20 and a beta of 1.63. The firm's 50 day moving average is $94.78 and its 200 day moving average is $107.22. Builders FirstSource has a 12 month low of $76.50 and a 12 month high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its quarterly earnings results on Tuesday, February 17th. The company reported $1.12 EPS for the quarter, missing analysts' consensus estimates of $1.30 by ($0.18). The company had revenue of $3.36 billion during the quarter, compared to the consensus estimate of $3.46 billion. Builders FirstSource had a return on equity of 17.89% and a net margin of 2.87%.The company's revenue for the quarter was down 12.1% compared to the same quarter last year. During the same period last year, the firm posted $2.31 EPS. Sell-side analysts expect that Builders FirstSource will post 11.59 earnings per share for the current year.

Insider Activity at Builders FirstSource

In other news, Director Paul S. Levy purchased 50,000 shares of Builders FirstSource stock in a transaction dated Friday, March 13th. The stock was purchased at an average cost of $87.73 per share, for a total transaction of $4,386,500.00. Following the transaction, the director directly owned 1,727,191 shares of the company's stock, valued at approximately $151,526,466.43. This trade represents a 2.98% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Cromwell Holdings LLC grew its position in shares of Builders FirstSource by 1,323.5% during the 4th quarter. Cromwell Holdings LLC now owns 242 shares of the company's stock valued at $25,000 after purchasing an additional 225 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its position in shares of Builders FirstSource by 167.1% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock valued at $26,000 after purchasing an additional 132 shares in the last quarter. TD Waterhouse Canada Inc. purchased a new position in shares of Builders FirstSource during the 3rd quarter valued at $34,000. Transamerica Financial Advisors LLC grew its position in shares of Builders FirstSource by 90.2% during the 4th quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock valued at $38,000 after purchasing an additional 175 shares in the last quarter. Finally, CYBER HORNET ETFs LLC purchased a new position in shares of Builders FirstSource during the 2nd quarter valued at $38,000. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

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.

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