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

Key Points

• Builders FirstSource, Inc. has received a consensus recommendation of “Moderate Buy” from 21 analysts, with the average 1-year price target set at $159.42.
• Insider purchasing activity includes Director Paul S. Levy buying 283,517 shares for approximately $31.5 million, boosting his ownership in the company significantly.
• The stock is currently trading at $127.40 with a market cap of $14.08 billion, following a quarterly earnings report that surpassed analysts' expectations.

Shares of Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the twenty-one analysts that are currently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, seven have issued a hold recommendation, twelve have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $158.79.

BLDR has been the subject of a number of recent analyst reports. Robert W. Baird reaffirmed a "neutral" rating and issued a $130.00 price objective (down previously from $145.00) on shares of Builders FirstSource in a report on Friday. Stephens cut their price objective on shares of Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating for the company in a report on Friday, May 2nd. Raymond James Financial reaffirmed an "outperform" rating and issued a $140.00 price objective (down previously from $170.00) on shares of Builders FirstSource in a report on Friday, May 2nd. Oppenheimer set a $155.00 target price on shares of Builders FirstSource and gave the company an "outperform" rating in a research report on Thursday, July 10th. Finally, Royal Bank Of Canada lowered shares of Builders FirstSource from an "outperform" rating to a "sector perform" rating and dropped their target price for the company from $132.00 to $129.00 in a research report on Friday.

Insider Transactions at Builders FirstSource

In related news, Director Dirkson R. Charles purchased 5,000 shares of Builders FirstSource stock in a transaction dated Tuesday, May 27th. The shares were acquired at an average cost of $109.67 per share, with a total value of $548,350.00. Following the purchase, the director owned 5,000 shares of the company's stock, valued at approximately $548,350. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Paul S. Levy purchased 283,517 shares of Builders FirstSource stock in a transaction dated Thursday, May 8th. The stock was bought at an average cost of $111.21 per share, for a total transaction of $31,529,925.57. Following the completion of the purchase, the director directly owned 1,672,687 shares in the company, valued at approximately $186,019,521.27. This trade represents a 20.41% increase in their position. The disclosure for this purchase can be found here. Insiders have acquired 505,000 shares of company stock worth $56,032,120 over the last ninety days. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Builders FirstSource

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. HighPoint Advisor Group LLC raised its stake in shares of Builders FirstSource by 5.2% in the 4th quarter. HighPoint Advisor Group LLC now owns 1,677 shares of the company's stock valued at $262,000 after acquiring an additional 83 shares during the period. Aptus Capital Advisors LLC increased its stake in Builders FirstSource by 6.0% during the 4th quarter. Aptus Capital Advisors LLC now owns 1,494 shares of the company's stock worth $214,000 after buying an additional 85 shares during the period. Stephens Inc. AR increased its stake in Builders FirstSource by 3.1% during the 2nd quarter. Stephens Inc. AR now owns 3,032 shares of the company's stock worth $354,000 after buying an additional 90 shares during the period. Auxano Advisors LLC increased its stake in Builders FirstSource by 3.8% during the 1st quarter. Auxano Advisors LLC now owns 2,479 shares of the company's stock worth $310,000 after buying an additional 91 shares during the period. Finally, Baird Financial Group Inc. increased its stake in Builders FirstSource by 2.3% during the 4th quarter. Baird Financial Group Inc. now owns 4,391 shares of the company's stock worth $628,000 after buying an additional 98 shares during the period. 95.53% of the stock is owned by hedge funds and other institutional investors.

Builders FirstSource Stock Performance

Shares of Builders FirstSource stock traded up $3.05 during trading on Friday, hitting $130.18. 3,999,716 shares of the company's stock were exchanged, compared to its average volume of 1,979,004. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.07 and a current ratio of 1.79. The business has a 50-day simple moving average of $120.51 and a 200-day simple moving average of $129.10. Builders FirstSource has a 52-week low of $102.60 and a 52-week high of $203.14. The stock has a market capitalization of $14.39 billion, a price-to-earnings ratio of 19.75, a PEG ratio of 11.62 and a beta of 1.68.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.35 by $0.03. Builders FirstSource had a net margin of 4.74% and a return on equity of 24.61%. The firm had revenue of $4.23 billion during the quarter, compared to analysts' expectations of $4.29 billion. During the same quarter last year, the company posted $3.50 earnings per share. The firm's revenue was down 5.0% compared to the same quarter last year. On average, research analysts forecast that Builders FirstSource will post 11.59 EPS for the current year.

Builders FirstSource declared that its Board of Directors has approved a share repurchase program on Thursday, May 1st that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 3.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Builders FirstSource Company Profile

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.