BMO Capital Markets Cuts Builders FirstSource (NYSE:BLDR) Price Target to $100.00

Key Points

• BMO Capital Markets cut Builders FirstSource (NYSE:BLDR) price target to $100 from $120 and maintained a "market perform" rating, with the new target implying about a 12.6% upside from the stock's recent price.
• Analyst coverage is mixed: the consensus is a "Hold" with an average target of $118.87, and recent moves include several target cuts (UBS, Jefferies, Goldman, Barclays) while RBC upgraded to "outperform"; ratings breakdown is nine Buy, eleven Hold and three Sell.
• Fundamentals show pressure: the latest quarter missed estimates with $1.12 EPS vs $1.30 expected and revenue down 12.1% YoY to $3.36B; meanwhile, Director Paul S. Levy bought 50,000 shares (~$87.73 each), insiders own 2.7% and institutions hold 95.53% of the stock.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price target dropped by equities research analysts at BMO Capital Markets from $120.00 to $100.00 in a research report issued to clients and investors on Monday,MarketScreener reports. The brokerage presently has a "market perform" rating on the stock. BMO Capital Markets' price target would indicate a potential upside of 12.60% from the stock's current price.

Several other equities research analysts have also recently weighed in on the stock. UBS Group lowered their price objective on shares of Builders FirstSource from $166.00 to $143.00 and set a "buy" rating for the company in a research report on Tuesday, January 6th. Royal Bank Of Canada raised shares of Builders FirstSource from a "sector perform" rating to an "outperform" rating and set a $119.00 price target for the company in a report on Thursday, March 5th. Jefferies Financial Group dropped their price objective on shares of Builders FirstSource from $110.00 to $85.00 and set a "hold" rating for the company in a research report on Monday, April 13th. The Goldman Sachs Group reduced their price objective on Builders FirstSource from $142.00 to $110.00 and set a "buy" rating on the stock in a report on Friday, April 10th. Finally, Barclays decreased their price objective on Builders FirstSource from $124.00 to $114.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 8th. Nine equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Builders FirstSource currently has a consensus rating of "Hold" and an average target price of $118.87.

Builders FirstSource Trading Up 0.4%

BLDR stock opened at $88.81 on Monday. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.86 and a quick ratio of 1.16. The stock has a market capitalization of $9.82 billion, a price-to-earnings ratio of 23.09, a P/E/G ratio of 2.20 and a beta of 1.63. The business has a fifty day moving average price of $94.78 and a 200 day moving average price of $107.22. Builders FirstSource has a fifty-two week low of $76.50 and a fifty-two week high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its earnings results on Tuesday, February 17th. The company reported $1.12 EPS for the quarter, missing the consensus estimate of $1.30 by ($0.18). Builders FirstSource had a return on equity of 17.89% and a net margin of 2.87%.The business had revenue of $3.36 billion for the quarter, compared to the consensus estimate of $3.46 billion. During the same quarter in the previous year, the company posted $2.31 EPS. Builders FirstSource's revenue for the quarter was down 12.1% on a year-over-year basis. Analysts expect that Builders FirstSource will post 11.59 EPS for the current fiscal year.

Insider Activity at Builders FirstSource

In related news, Director Paul S. Levy purchased 50,000 shares of the business's stock in a transaction dated Friday, March 13th. The shares were bought at an average price of $87.73 per share, with a total value of $4,386,500.00. Following the purchase, the director directly owned 1,727,191 shares in the company, valued at $151,526,466.43. This trade represents a 2.98% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Insiders own 2.70% of the company's stock.

Institutional Investors Weigh In On Builders FirstSource

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Tran Capital Management L.P. raised its holdings in Builders FirstSource by 2,930.4% in the third quarter. Tran Capital Management L.P. now owns 102,154 shares of the company's stock worth $12,386,000 after purchasing an additional 98,783 shares during the period. Strs Ohio increased its position in shares of Builders FirstSource by 24.0% in the 3rd quarter. Strs Ohio now owns 118,594 shares of the company's stock valued at $14,380,000 after buying an additional 22,926 shares in the last quarter. Candriam S.C.A. raised its stake in Builders FirstSource by 28.9% during the 3rd quarter. Candriam S.C.A. now owns 53,085 shares of the company's stock worth $6,437,000 after buying an additional 11,891 shares during the period. Fieldview Capital Management LLC bought a new position in Builders FirstSource during the third quarter worth about $2,944,000. Finally, Moody Lynn & Lieberson LLC bought a new position in Builders FirstSource during the third quarter worth about $8,925,000. Institutional investors own 95.53% of the company's stock.

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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