Builders FirstSource, Inc. (NYSE:BLDR) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Builders FirstSource, Inc. has received a consensus rating of "Moderate Buy" from analysts, with 11 buy recommendations and one sell recommendation among 20 analysts covering the stock.
• The average 12-month price target for Builders FirstSource is around $154.44, although some brokerages have lowered their price targets recently.
• Builders FirstSource has initiated a $500 million stock buyback program, a sign that the board may believe the stock is undervalued.

Shares of Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twenty analysts that are covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and eleven have given a buy recommendation to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $154.4444.

A number of brokerages recently commented on BLDR. Royal Bank Of Canada cut shares of Builders FirstSource from an "outperform" rating to a "sector perform" rating and dropped their price target for the company from $132.00 to $129.00 in a research note on Friday, August 1st. UBS Group dropped their price target on shares of Builders FirstSource from $180.00 to $163.00 and set a "buy" rating on the stock in a research note on Friday, May 2nd. Wedbush lowered their target price on shares of Builders FirstSource from $190.00 to $145.00 and set an "outperform" rating on the stock in a research note on Friday, June 20th. Baird R W cut shares of Builders FirstSource from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 1st. Finally, Stephens lowered their target price on shares of Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating on the stock in a research note on Friday, May 2nd.

Hedge Funds Weigh In On Builders FirstSource

Institutional investors have recently made changes to their positions in the stock. IMA Advisory Services Inc. bought a new position in shares of Builders FirstSource during the 1st quarter valued at $31,000. CYBER HORNET ETFs LLC bought a new position in shares of Builders FirstSource during the 2nd quarter valued at $38,000. MUFG Securities EMEA plc bought a new position in shares of Builders FirstSource during the 2nd quarter valued at $38,000. Sentry Investment Management LLC bought a new position in shares of Builders FirstSource during the 1st quarter valued at $40,000. Finally, CX Institutional bought a new position in shares of Builders FirstSource during the 1st quarter valued at $45,000. Institutional investors own 95.53% of the company's stock.

Builders FirstSource Stock Performance

Shares of BLDR stock opened at $142.00 on Tuesday. The stock has a market capitalization of $15.70 billion, a P/E ratio of 21.55, a PEG ratio of 15.30 and a beta of 1.68. The company has a current ratio of 1.79, a quick ratio of 1.08 and a debt-to-equity ratio of 1.12. The firm's 50 day moving average is $128.30 and its 200 day moving average is $125.29. Builders FirstSource has a 12 month low of $102.60 and a 12 month high of $203.14.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $2.38 EPS for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. The company had revenue of $4.23 billion for the quarter, compared to analysts' expectations of $4.29 billion. Builders FirstSource had a net margin of 4.74% and a return on equity of 24.61%. Builders FirstSource's revenue was down 5.0% compared to the same quarter last year. During the same period in the prior year, the company posted $3.50 EPS. Builders FirstSource has set its FY 2025 guidance at EPS. On average, sell-side analysts anticipate that Builders FirstSource will post 11.59 earnings per share for the current year.

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

About Builders FirstSource

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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