BMO Capital Markets Has Lowered Expectations for Builders FirstSource (NYSE:BLDR) Stock Price

Key Points

• BMO Capital Markets lowered its price target for Builders FirstSource from $93 to $85 while maintaining a “market perform” rating, implying roughly 15% upside from the previous close.
• Analyst sentiment remains mixed but leans neutral: MarketBeat reports a consensus “Hold” rating and an average target price of $99.97, with several firms recently cutting their targets.
• BLDR shares traded at $73.86, well below their 52-week high of $151.03. The company missed quarterly EPS estimates, while revenue declined 10.1% year over year; its board also authorized a $500 million share-repurchase program.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price objective lowered by equities research analysts at BMO Capital Markets from $93.00 to $85.00 in a report issued on Tuesday,Benzinga reports. The firm presently has a "market perform" rating on the stock. BMO Capital Markets' target price indicates a potential upside of 15.07% from the company's previous close.

A number of other brokerages also recently weighed in on BLDR. Truist Financial lowered their price target on Builders FirstSource from $145.00 to $115.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. KeyCorp reduced their price objective on Builders FirstSource from $100.00 to $91.00 and set an "overweight" rating for the company in a research note on Monday, July 13th. Stephens decreased their price objective on Builders FirstSource from $125.00 to $100.00 and set an "equal weight" rating for the company in a research report on Monday, April 27th. Robert W. Baird lowered their target price on Builders FirstSource from $125.00 to $95.00 in a research note on Friday, May 1st. Finally, The Goldman Sachs Group reduced their price target on shares of Builders FirstSource from $110.00 to $101.00 in a research report on Friday, May 1st. Nine research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $99.97.

Builders FirstSource Trading Up 1.6%

Shares of BLDR stock traded up $1.15 during trading hours on Tuesday, reaching $73.86. 625,639 shares of the stock traded hands, compared to its average volume of 2,416,835. The company has a quick ratio of 1.09, a current ratio of 1.76 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $7.94 billion, a PE ratio of 28.32, a PEG ratio of 1.79 and a beta of 1.42. Builders FirstSource has a 1-year low of $65.10 and a 1-year high of $151.03. The business has a fifty day moving average price of $77.16 and a 200 day moving average price of $90.95.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.27 EPS for the quarter, missing analysts' consensus estimates of $0.39 by ($0.12). Builders FirstSource had a return on equity of 14.89% and a net margin of 1.97%.The firm had revenue of $3.29 billion during the quarter, compared to analyst estimates of $3.17 billion. During the same period in the prior year, the business posted $1.51 EPS. The company's revenue for the quarter was down 10.1% on a year-over-year basis. On average, equities research analysts forecast that Builders FirstSource will post 4.16 EPS for the current year.

Builders FirstSource declared that its Board of Directors has approved a share repurchase plan on Thursday, April 30th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 5.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Builders FirstSource

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Daiwa Securities Group Inc. increased its holdings in Builders FirstSource by 0.4% in the second quarter. Daiwa Securities Group Inc. now owns 17,630 shares of the company's stock worth $2,057,000 after buying an additional 78 shares during the last quarter. New Mexico Educational Retirement Board lifted its stake in Builders FirstSource by 2.0% in the fourth quarter. New Mexico Educational Retirement Board now owns 5,100 shares of the company's stock valued at $525,000 after acquiring an additional 100 shares during the last quarter. Moors & Cabot Inc. grew its position in Builders FirstSource by 1.5% in the fourth quarter. Moors & Cabot Inc. now owns 7,388 shares of the company's stock worth $760,000 after acquiring an additional 109 shares in the last quarter. Root Financial Partners LLC increased its stake in shares of Builders FirstSource by 43.6% during the 1st quarter. Root Financial Partners LLC now owns 372 shares of the company's stock worth $31,000 after purchasing an additional 113 shares during the last quarter. Finally, CIBC Private Wealth Group LLC increased its stake in shares of Builders FirstSource by 5.9% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,272 shares of the company's stock worth $275,000 after purchasing an additional 126 shares during the last quarter. 95.53% of the stock is 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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