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

Key Points

• Builders FirstSource has a consensus analyst rating of "Hold" from 23 brokerages, with 3 sell ratings, 12 hold ratings, and 8 buy ratings. The average 1-year price target is about $101.45.
• The company recently reported quarterly earnings of $0.27 per share, missing expectations, while revenue of $3.29 billion topped estimates. Revenue was still down 10.1% year over year from the prior year quarter.
• Builders FirstSource's board approved a $500 million share repurchase program, which would allow the company to buy back up to 5.4% of its shares. The move may signal management believes the stock is undervalued.

Shares of Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) have been given an average rating of "Hold" by the twenty-three brokerages that are covering the firm, Marketbeat reports. Three research analysts have rated the stock with a sell rating, twelve have issued a hold rating and eight have assigned a buy rating to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $101.4481.

A number of equities research analysts recently weighed in on BLDR shares. Barclays dropped their price target on shares of Builders FirstSource from $114.00 to $93.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. Loop Capital reduced their price objective on shares of Builders FirstSource from $140.00 to $110.00 in a research note on Friday, May 1st. Royal Bank Of Canada lowered their target price on shares of Builders FirstSource from $110.00 to $107.00 and set an "outperform" rating for the company in a report on Friday, May 1st. Zacks Research upgraded shares of Builders FirstSource from a "strong sell" rating to a "hold" rating in a research report on Friday, July 3rd. Finally, Raymond James Financial cut their price target on Builders FirstSource from $140.00 to $100.00 in a research note on Friday, May 1st.

Builders FirstSource Price Performance

Shares of BLDR stock opened at $78.23 on Friday. The firm has a market cap of $8.41 billion, a price-to-earnings ratio of 29.97, a PEG ratio of 1.80 and a beta of 1.42. Builders FirstSource has a 12 month low of $65.10 and a 12 month high of $151.03. 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 stock has a 50-day moving average price of $77.30 and a 200 day moving average price of $92.59.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $0.27 earnings per share (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 analyst estimates of $3.17 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The business's revenue for the quarter was down 10.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.51 earnings per share. Research analysts expect that Builders FirstSource will post 4.32 EPS for the current year.

Builders FirstSource announced that its Board of Directors has approved a share repurchase program on Thursday, April 30th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to repurchase up to 5.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Builders FirstSource

Several hedge funds have recently added to or reduced their stakes in the stock. Wedge Capital Management L L P NC grew its position in shares of Builders FirstSource by 6.3% during the 2nd quarter. Wedge Capital Management L L P NC now owns 89,477 shares of the company's stock worth $8,006,000 after buying an additional 5,268 shares during the period. Hudson Value Partners LLC increased its stake in shares of Builders FirstSource by 10.2% in the 2nd quarter. Hudson Value Partners LLC now owns 60,904 shares of the company's stock valued at $5,450,000 after acquiring an additional 5,620 shares during the last quarter. LVM Capital Management Ltd. MI acquired a new stake in shares of Builders FirstSource in the 2nd quarter valued at approximately $666,000. Polianta Ltd raised its position in shares of Builders FirstSource by 37.1% in the 2nd quarter. Polianta Ltd now owns 22,900 shares of the company's stock valued at $2,049,000 after acquiring an additional 6,200 shares during the period. Finally, Czech National Bank boosted its stake in Builders FirstSource by 1.7% during the 2nd quarter. Czech National Bank now owns 30,616 shares of the company's stock worth $2,740,000 after acquiring an additional 500 shares during the last quarter. Institutional investors and hedge funds own 95.53% of the company's stock.

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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