Builders FirstSource (NYSE:BLDR) Stock Rating Lowered by Royal Bank Of Canada

Key Points

• Builders FirstSource has been downgraded by Royal Bank of Canada from an "outperform" rating to "sector perform," with a target price set at $129.00, indicating a potential upside of 1.26% from the previous close.
• Other analysts have similarly downgraded their beliefs in Builders FirstSource, with several price objectives being cut significantly—Robert W. Baird lowered theirs from $145.00 to $130.00, and BMO Capital Markets reduced their target from $146.00 to $135.00.
• Despite the downgrades, Builders FirstSource's stock has shown some resilience, opening at $127.40, and recently recorded a 1.0% increase in shares.

Builders FirstSource (NYSE:BLDR - Get Free Report) was downgraded by stock analysts at Royal Bank Of Canada from an "outperform" rating to a "sector perform" rating in a research report issued to clients and investors on Friday, MarketBeat reports. They presently have a $129.00 target price on the stock, down from their previous target price of $132.00. Royal Bank Of Canada's target price indicates a potential downside of 0.91% from the company's previous close.

BLDR has been the subject of a number of other reports. Barclays lowered their price target on Builders FirstSource from $151.00 to $137.00 and set an "overweight" rating for the company in a report on Friday, May 2nd. Loop Capital lowered their target price on shares of Builders FirstSource from $190.00 to $170.00 and set a "buy" rating for the company in a report on Monday, April 14th. Raymond James Financial reaffirmed an "outperform" rating and issued a $140.00 target price (down from $170.00) on shares of Builders FirstSource in a research report on Friday, May 2nd. Robert W. Baird cut shares of Builders FirstSource from an "outperform" rating to a "neutral" rating and reduced their price target for the company from $145.00 to $130.00 in a research report on Friday. Finally, Stephens decreased their price objective on shares of Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating for the company in a research note on Friday, May 2nd. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and twelve have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $158.79.

Builders FirstSource Stock Performance

Shares of BLDR stock opened at $130.18 on Friday. The company has a market cap of $14.39 billion, a P/E ratio of 19.75, a PEG ratio of 11.62 and a beta of 1.69. The firm has a fifty day moving average price of $120.51 and a 200 day moving average price of $129.10. The company has a current ratio of 1.79, a quick ratio of 1.07 and a debt-to-equity ratio of 1.12. 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.35 by $0.03. The company had revenue of $4.23 billion during the quarter, compared to the consensus estimate of $4.29 billion. Builders FirstSource had a return on equity of 24.61% and a net margin of 4.74%. Builders FirstSource's revenue for the quarter was down 5.0% on a year-over-year basis. During the same period in the previous year, the business earned $3.50 EPS. Sell-side analysts predict that Builders FirstSource will post 11.59 earnings per share for the current fiscal year.

Builders FirstSource declared that its Board of Directors has authorized a stock repurchase plan on Thursday, May 1st that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 3.9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Dirkson R. Charles purchased 5,000 shares of the business's stock in a transaction dated Tuesday, May 27th. The stock was acquired at an average price of $109.67 per share, for a total transaction of $548,350.00. Following the completion of the purchase, the director directly owned 5,000 shares of the company's stock, valued at $548,350. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Paul S. Levy acquired 283,517 shares of the stock in a transaction that occurred on Thursday, May 8th. The stock was purchased at an average price of $111.21 per share, for a total transaction of $31,529,925.57. Following the completion of the transaction, the director owned 1,672,687 shares in the company, valued at $186,019,521.27. The trade was a 20.41% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders bought 505,000 shares of company stock worth $56,032,120. Corporate insiders own 2.00% of the company's stock.

Institutional Trading of Builders FirstSource

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Brave Warrior Advisors LLC purchased a new position in Builders FirstSource during the first quarter worth about $155,123,000. Wellington Management Group LLP increased its position in Builders FirstSource by 42.6% during the 1st quarter. Wellington Management Group LLP now owns 3,217,125 shares of the company's stock worth $401,948,000 after purchasing an additional 960,603 shares during the period. Voya Investment Management LLC increased its position in Builders FirstSource by 174.2% during the 4th quarter. Voya Investment Management LLC now owns 1,416,280 shares of the company's stock worth $202,374,000 after purchasing an additional 899,841 shares during the period. FMR LLC raised its stake in shares of Builders FirstSource by 7.3% during the 4th quarter. FMR LLC now owns 10,898,366 shares of the company's stock worth $1,557,703,000 after buying an additional 740,214 shares in the last quarter. Finally, Kovitz Investment Group Partners LLC lifted its holdings in shares of Builders FirstSource by 957.1% in the 1st quarter. Kovitz Investment Group Partners LLC now owns 528,984 shares of the company's stock valued at $66,091,000 after buying an additional 478,942 shares during the period. Hedge funds and other institutional investors own 95.53% of the company's stock.

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.