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

Key Points

• Analysts have a consensus “Hold” rating on Builders FirstSource, based on 23 brokerages: 11 holds, nine buys and three sells. The average 12-month price target is $90.35.
• Shares opened at $71.97, well below their 52-week high of $151.03. The company’s latest quarterly results missed expectations, with EPS of $1.17 versus $1.25 expected and revenue down 8.8% year over year.
• Builders FirstSource authorized a $500 million share-repurchase program, covering up to 5.4% of outstanding shares. Institutional investors own 95.53% of the company.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) has earned an average recommendation of "Hold" from the twenty-three brokerages that are presently covering the firm, Marketbeat Ratings reports. Three analysts have rated the stock with a sell recommendation, eleven have assigned a hold recommendation and nine have assigned a buy recommendation to the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $90.3529.

BLDR has been the topic of several recent analyst reports. Robert W. Baird set a $75.00 target price on shares of Builders FirstSource in a research note on Friday, July 31st. UBS Group dropped their price target on shares of Builders FirstSource from $122.00 to $88.00 and set a "buy" rating for the company in a research note on Friday, July 31st. Stephens cut their price target on shares of Builders FirstSource from $125.00 to $100.00 and set an "equal weight" rating on the stock in a report on Monday, April 27th. BMO Capital Markets reissued a "market perform" rating and issued a $80.00 price objective on shares of Builders FirstSource in a research report on Thursday. Finally, KeyCorp decreased their price objective on shares of Builders FirstSource from $100.00 to $91.00 and set an "overweight" rating for the company in a research note on Monday, July 13th.

Builders FirstSource Stock Performance

NYSE BLDR opened at $71.97 on Tuesday. The business's 50 day moving average price is $76.69 and its 200-day moving average price is $87.39. Builders FirstSource has a fifty-two week low of $65.10 and a fifty-two week high of $151.03. The company has a market cap of $7.74 billion, a P/E ratio of 79.09, a P/E/G ratio of 2.42 and a beta of 1.44. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.09 and a current ratio of 1.79.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.25 by ($0.08). The company had revenue of $3.86 billion during the quarter, compared to the consensus estimate of $3.91 billion. Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%.The firm's quarterly revenue was down 8.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.38 earnings per share. Sell-side analysts predict that Builders FirstSource will post 3.15 earnings per share 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 reacquire up to 5.4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Builders FirstSource

A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new position in Builders FirstSource in the 2nd quarter valued at $700,934,000. State Street Corp lifted its position in shares of Builders FirstSource by 2.3% during the fourth quarter. State Street Corp now owns 5,108,120 shares of the company's stock worth $525,574,000 after purchasing an additional 115,857 shares during the last quarter. Wellington Management Group LLP lifted its position in shares of Builders FirstSource by 2.3% during the fourth quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company's stock worth $341,265,000 after purchasing an additional 73,835 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Builders FirstSource by 12.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,967,744 shares of the company's stock valued at $244,301,000 after purchasing an additional 325,935 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of Builders FirstSource by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 2,817,958 shares of the company's stock valued at $288,789,000 after purchasing an additional 14,420 shares during the period. 95.53% of the stock is owned by 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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