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

Key Points

• Barclays has reduced its target price for Builders FirstSource (NYSE:BLDR) from $137.00 to $135.00, while maintaining an "overweight" rating that suggests a potential upside of 6.93% from the previous close.
• Various analysts have expressed differing views, with Oppenheimer setting a $155.00 target and Royal Bank of Canada downgrading to a $129.00 price objective, reflecting a range of market sentiments.
• Builders FirstSource's board has initiated a $500 million stock buyback program, indicating confidence that the company's shares are currently undervalued.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its target price reduced by analysts at Barclays from $137.00 to $135.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Barclays's target price suggests a potential upside of 6.93% from the company's previous close.

Several other equities research analysts also recently weighed in on the company. Oppenheimer set a $155.00 price objective on Builders FirstSource and gave the company an "outperform" rating in a report on Thursday, July 10th. Royal Bank Of Canada downgraded Builders FirstSource from an "outperform" rating to a "sector perform" rating and set a $129.00 price objective for the company. in a report on Friday. UBS Group cut their price target on Builders FirstSource from $180.00 to $163.00 and set a "buy" rating for the company in a research note on Friday, May 2nd. BMO Capital Markets decreased their price target on Builders FirstSource from $146.00 to $135.00 and set a "market perform" rating for the company in a report on Monday, May 5th. Finally, Stephens decreased their price target on Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating for the company in a report on Friday, May 2nd. One analyst has rated the stock with a sell rating, eight have given a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $158.26.

Builders FirstSource Price Performance

BLDR stock opened at $126.25 on Friday. The company has a market capitalization of $13.95 billion, a P/E ratio of 16.55, a PEG ratio of 11.53 and a beta of 1.69. Builders FirstSource has a twelve month low of $102.60 and a twelve month high of $203.14. The business has a 50 day simple moving average of $120.07 and a 200-day simple moving average of $129.26. The company has a current ratio of 1.82, a quick ratio of 1.07 and a debt-to-equity ratio of 1.02.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.35 by $0.03. The business had revenue of $4.23 billion during the quarter, compared to the consensus estimate of $4.29 billion. Builders FirstSource had a return on equity of 28.02% and a net margin of 5.66%. The company's revenue was down 5.0% compared to the same quarter last year. During the same period in the prior year, the company earned $3.50 earnings per share. As a group, equities analysts anticipate that Builders FirstSource will post 11.59 EPS for the current year.

Builders FirstSource declared that its board has initiated a stock buyback program on Thursday, May 1st that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 3.9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling at Builders FirstSource

In other Builders FirstSource news, Director Paul S. Levy acquired 283,517 shares of the business's stock in a transaction on Thursday, May 8th. The stock was purchased at an average price of $111.21 per share, for a total transaction of $31,529,925.57. Following the completion of the transaction, the director owned 1,672,687 shares of the company's stock, valued at $186,019,521.27. The trade was a 20.41% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Dirkson R. Charles purchased 5,000 shares of the company's stock in a transaction dated Tuesday, May 27th. The stock was purchased at an average price of $109.67 per share, with a total value of $548,350.00. Following the transaction, the director owned 5,000 shares of the company's stock, valued at approximately $548,350. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired 505,000 shares of company stock valued at $56,032,120 in the last quarter. 2.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. FMR LLC increased its position in shares of Builders FirstSource by 7.3% in the fourth quarter. FMR LLC now owns 10,898,366 shares of the company's stock valued at $1,557,703,000 after buying an additional 740,214 shares in the last quarter. Wellington Management Group LLP increased its position in shares of Builders FirstSource by 42.6% in the first quarter. Wellington Management Group LLP now owns 3,217,125 shares of the company's stock valued at $401,948,000 after buying an additional 960,603 shares in the last quarter. Invesco Ltd. increased its position in shares of 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 buying an additional 265,873 shares in the last quarter. Diamond Hill Capital Management Inc. increased its position in shares of Builders FirstSource by 16.8% in the first quarter. Diamond Hill Capital Management Inc. now owns 2,270,362 shares of the company's stock valued at $283,659,000 after buying an additional 326,923 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of Builders FirstSource by 0.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,244,449 shares of the company's stock valued at $280,387,000 after buying an additional 6,453 shares in the last quarter. Hedge funds and other institutional investors own 95.53% of the company's stock.

Builders FirstSource Company Profile

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.

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