Builders FirstSource, Inc. (NYSE:BLDR) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analyst sentiment is mixed on Builders FirstSource, with a consensus rating of Hold from 24 covering firms. The breakdown includes four sell ratings, 11 hold ratings and nine buy ratings, with an average price target of about $101.88.
• The company reported weak quarterly earnings, posting EPS of $0.27 versus the expected $0.39, even though revenue of $3.29 billion came in above estimates. Revenue was still down 10.1% year over year.
• Builders FirstSource announced a $500 million share repurchase program, which would allow it to buy back up to 5.4% of outstanding shares. The stock also traded up 3.9% on the day described, while insider and institutional ownership remained significant.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) has earned a consensus recommendation of "Hold" from the twenty-four research firms that are currently covering the stock, MarketBeat Ratings reports. Four analysts have rated the stock with a sell rating, eleven have issued a hold rating and nine have issued a buy rating on the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $101.8767.

A number of research analysts have commented on BLDR shares. Royal Bank Of Canada cut their target price on shares of Builders FirstSource from $110.00 to $107.00 and set an "outperform" rating on the stock in a research report on Friday, May 1st. The Goldman Sachs Group cut their target price on shares of Builders FirstSource from $110.00 to $101.00 in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft cut their target price on shares of Builders FirstSource from $102.00 to $81.00 and set a "hold" rating on the stock in a research report on Monday, May 4th. Wells Fargo & Company cut their target price 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, May 1st. Finally, UBS Group cut their target price on shares of Builders FirstSource from $143.00 to $122.00 and set a "buy" rating on the stock in a research report on Friday, May 1st.

Insider Buying and Selling

In other Builders FirstSource news, Director Paul S. Levy bought 50,000 shares of the business's 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 transaction, the director 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 position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 2.70% of the company's stock.

Institutional Trading of Builders FirstSource

A number of institutional investors have recently modified their holdings of the company. Glenmede Trust Co. NA boosted its holdings in shares of Builders FirstSource by 6.7% in the 1st quarter. Glenmede Trust Co. NA now owns 7,126 shares of the company's stock valued at $587,000 after buying an additional 450 shares in the last quarter. Turtle Creek Asset Management Inc. boosted its holdings in shares of Builders FirstSource by 40.4% in the 1st quarter. Turtle Creek Asset Management Inc. now owns 94,990 shares of the company's stock valued at $7,821,000 after buying an additional 27,350 shares in the last quarter. Edgestream Partners L.P. boosted its holdings in shares of Builders FirstSource by 484.9% in the 1st quarter. Edgestream Partners L.P. now owns 21,277 shares of the company's stock valued at $1,752,000 after buying an additional 17,639 shares in the last quarter. Lodge Hill Capital LLC boosted its holdings in shares of Builders FirstSource by 9.9% in the 1st quarter. Lodge Hill Capital LLC now owns 333,000 shares of the company's stock valued at $27,416,000 after buying an additional 30,000 shares in the last quarter. Finally, South Dakota Investment Council boosted its holdings in shares of Builders FirstSource by 47.1% in the 1st quarter. South Dakota Investment Council now owns 33,501 shares of the company's stock valued at $2,758,000 after buying an additional 10,725 shares in the last quarter. 95.53% of the stock is currently owned by institutional investors.

Builders FirstSource Trading Up 3.9%

BLDR stock opened at $77.32 on Thursday. The company has a market capitalization of $8.32 billion, a PE ratio of 29.62, a P/E/G ratio of 1.78 and a beta of 1.49. Builders FirstSource has a 12 month low of $65.10 and a 12 month high of $151.03. The firm's 50-day moving average is $81.13 and its 200 day moving average is $99.41. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.09.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its 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). The business had revenue of $3.29 billion for the quarter, compared to analysts' expectations of $3.17 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The company's revenue for the quarter was down 10.1% on a year-over-year basis. During the same period last year, the business posted $1.51 EPS. On average, research analysts anticipate that Builders FirstSource will post 4.26 EPS for the current year.

Builders FirstSource declared that its board has approved a share repurchase plan on Thursday, April 30th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to buy up to 5.4% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board believes its stock is undervalued.

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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