BMO Capital Markets Lowers Builders FirstSource (NYSE:BLDR) Price Target to $93.00

Key Points

• BMO Capital Markets cut its price target on Builders FirstSource to $93.00 from $100 and kept a "market perform" rating, implying about a 25.8% upside from the prior close.
• Builders FirstSource missed Q1 EPS expectations (reported $0.27 vs. $0.39 consensus) while revenue of $3.29B beat estimates but fell 10.1% year-over-year; the board also approved a $500 million share buyback (up to 5.4% of shares).
• Analysts are mixed overall—the consensus rating is "Hold" with a $101.88 average price target (9 Buys, 10 Holds, 4 Sells), and the stock trades around $73.95 with a market cap of about $8.18 billion.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its target price lowered by investment analysts at BMO Capital Markets from $100.00 to $93.00 in a research report issued on Monday,MarketScreener reports. The firm presently has a "market perform" rating on the stock. BMO Capital Markets' price target indicates a potential upside of 25.77% from the company's previous close.

Other analysts also recently issued research reports about the company. Royal Bank Of Canada decreased their target price on Builders FirstSource from $110.00 to $107.00 and set an "outperform" rating on the stock in a research note on Friday. The Goldman Sachs Group dropped their price target on Builders FirstSource from $110.00 to $101.00 in a research note on Friday. Raymond James Financial cut their price objective on shares of Builders FirstSource from $140.00 to $100.00 in a report on Friday. Wells Fargo & Company reduced their price objective on shares of Builders FirstSource from $87.00 to $85.00 and set an "equal weight" rating on the stock in a research report on Friday. Finally, DA Davidson lowered their target price on shares of Builders FirstSource from $111.00 to $84.00 and set a "neutral" rating on the stock in a report on Friday. Nine research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $101.88.

Builders FirstSource Trading Up 0.3%

Shares of Builders FirstSource stock opened at $73.95 on Monday. The company has a market capitalization of $8.18 billion, a P/E ratio of 28.34, a P/E/G ratio of 2.35 and a beta of 1.49. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.09 and a current ratio of 1.76. The company has a fifty day moving average of $89.22 and a 200 day moving average of $104.78. Builders FirstSource has a fifty-two week low of $73.43 and a fifty-two week high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its quarterly earnings results 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 net margin of 1.97% and a return on equity of 14.89%. The business had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.17 billion. During the same period in the prior year, the business earned $1.51 earnings per share. Builders FirstSource's revenue was down 10.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Builders FirstSource will post 5.43 earnings per share for the current fiscal year.

Builders FirstSource declared that its Board of Directors has approved a share repurchase plan on Thursday, April 30th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to repurchase up to 5.4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Paul S. Levy acquired 50,000 shares of Builders FirstSource stock in a transaction on Friday, March 13th. The shares were acquired 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. The trade was a 2.98% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 2.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of BLDR. Cromwell Holdings LLC raised its stake in Builders FirstSource by 1,323.5% during the fourth 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 increased its holdings in shares of Builders FirstSource by 167.1% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock worth $26,000 after buying an additional 132 shares during the last quarter. Root Financial Partners LLC raised its position 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 valued at $31,000 after buying an additional 113 shares in the last quarter. TD Waterhouse Canada Inc. purchased a new stake in shares of Builders FirstSource during the 3rd quarter valued at about $34,000. Finally, Transamerica Financial Advisors LLC lifted its holdings in shares of Builders FirstSource by 90.2% in the 4th quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock valued at $38,000 after acquiring an additional 175 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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