Builders FirstSource (NYSE:BLDR) Lowered to Sell Rating by Wall Street Zen

Key Points

• Builders FirstSource has been downgraded from a "hold" rating to a "sell" rating by Wall Street Zen, amidst mixed evaluations from other research firms.
• The company's stock currently holds a consensus rating of "Hold" with an average price target of $154.44, while the market cap is approximately $14.63 billion.
• Builders FirstSource reported a slight decrease in revenue by 5.0% year-over-year, indicating challenges despite beating EPS estimates for the last quarter.

Builders FirstSource (NYSE:BLDR - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Several other research analysts have also recently issued reports on BLDR. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $134.00 target price on shares of Builders FirstSource in a report on Friday, August 1st. Barclays cut their target price on shares of Builders FirstSource from $137.00 to $135.00 and set an "overweight" rating on the stock in a report on Friday, August 1st. UBS Group cut their target price on shares of Builders FirstSource from $180.00 to $163.00 and set a "buy" rating on the stock in a report on Friday, May 2nd. Stifel Nicolaus raised their target price on shares of Builders FirstSource from $118.00 to $128.00 and gave the stock a "hold" rating in a report on Friday, August 1st. Finally, Oppenheimer set a $155.00 target price on shares of Builders FirstSource and gave the stock an "outperform" rating in a report on Thursday, July 10th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and eleven have given a buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $154.44.

Builders FirstSource Price Performance

NYSE BLDR traded down $3.24 on Friday, reaching $128.96. 1,811,934 shares of the company's stock traded hands, compared to its average volume of 1,962,495. Builders FirstSource has a 12 month low of $102.60 and a 12 month high of $203.14. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.79 and a quick ratio of 1.08. The stock has a 50-day simple moving average of $122.76 and a 200 day simple moving average of $127.44. The stock has a market cap of $14.26 billion, a PE ratio of 19.57, a P/E/G ratio of 14.00 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 for the quarter, compared to analysts' expectations of $4.29 billion. During the same quarter last year, the business earned $3.50 earnings per share. The business's revenue was down 5.0% on a year-over-year basis. As a group, research analysts predict that Builders FirstSource will post 11.59 earnings per share for the current year.

Builders FirstSource announced that its Board of Directors has approved a share buyback plan on Thursday, May 1st that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 3.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Activity at Builders FirstSource

In other Builders FirstSource news, Director Dirkson R. Charles bought 5,000 shares of the company's stock in a transaction dated Tuesday, May 27th. The shares were purchased at an average price of $109.67 per share, for a total transaction of $548,350.00. Following the acquisition, the director owned 5,000 shares in the company, valued at approximately $548,350. This represents a ∞ increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 2.00% of the company's stock.

Institutional Trading of Builders FirstSource

Several institutional investors have recently bought and sold shares of BLDR. Aptus Capital Advisors LLC boosted its holdings in Builders FirstSource by 6.0% in the fourth quarter. Aptus Capital Advisors LLC now owns 1,494 shares of the company's stock worth $214,000 after purchasing an additional 85 shares during the last quarter. Stephens Inc. AR boosted its holdings in Builders FirstSource by 3.1% in the second quarter. Stephens Inc. AR now owns 3,032 shares of the company's stock worth $354,000 after purchasing an additional 90 shares during the last quarter. Auxano Advisors LLC boosted its holdings in Builders FirstSource by 3.8% in the first quarter. Auxano Advisors LLC now owns 2,479 shares of the company's stock worth $310,000 after purchasing an additional 91 shares during the last quarter. Baird Financial Group Inc. boosted its holdings in Builders FirstSource by 2.3% in the fourth quarter. Baird Financial Group Inc. now owns 4,391 shares of the company's stock worth $628,000 after purchasing an additional 98 shares during the last quarter. Finally, Mather Group LLC. boosted its holdings in Builders FirstSource by 19.7% in the first quarter. Mather Group LLC. now owns 595 shares of the company's stock worth $74,000 after purchasing an additional 98 shares during the last quarter. 95.53% of the stock is owned by hedge funds and other institutional investors.

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.