Builders FirstSource (NYSE:BLDR) Price Target Cut to $85.00 by Analysts at Wells Fargo & Company

Key Points

• Q1 earnings missed: Builders FirstSource reported EPS of $0.27 vs. $0.39 expected and revenue of $3.29B (down ~10% YoY), and management trimmed 2026 profitability and free-cash-flow expectations amid softer housing demand.
• Board buyback and insider buy: The board authorized a $500 million share repurchase (≈5.4% of shares) and a director purchased 50,000 shares, signaling insider confidence despite the weak quarter.
• Analyst repositioning: Wells Fargo cut its price target to $85 with an "equal weight" rating, while overall analyst coverage remains a consensus "Hold" (10 Buy / 11 Hold / 3 Sell) with a $104.59 average target; shares trade around $78.75, below most targets.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price objective cut by stock analysts at Wells Fargo & Company from $87.00 to $85.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target would suggest a potential upside of 7.94% from the stock's previous close.

A number of other analysts have also recently weighed in on the stock. Weiss Ratings lowered shares of Builders FirstSource from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, March 20th. Robert W. Baird decreased their target price on shares of Builders FirstSource from $125.00 to $95.00 in a research report on Friday. Loop Capital reduced their target price on Builders FirstSource from $140.00 to $110.00 in a report on Friday. DA Davidson reduced their target price on Builders FirstSource from $111.00 to $84.00 in a report on Friday. Finally, Stifel Nicolaus cut their price objective on shares of Builders FirstSource from $115.00 to $93.00 and set a "hold" rating on the stock in a research report on Monday, March 16th. Ten equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Builders FirstSource presently has an average rating of "Hold" and a consensus target price of $104.59.

Builders FirstSource Trading Down 0.4%

Shares of NYSE:BLDR traded down $0.34 during mid-day trading on Friday, reaching $78.75. 513,393 shares of the company were exchanged, compared to its average volume of 2,304,266. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.86 and a quick ratio of 1.16. Builders FirstSource has a 1 year low of $76.50 and a 1 year high of $151.03. The firm has a market cap of $8.71 billion, a price-to-earnings ratio of 20.33, a P/E/G ratio of 2.51 and a beta of 1.63. The firm's 50-day simple moving average is $89.22 and its 200 day simple moving average is $105.05.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.27 EPS for the quarter, missing analysts' consensus estimates of $0.39 by ($0.12). The company had revenue of $3.29 billion for the quarter, compared to analysts' expectations of $3.17 billion. Builders FirstSource had a return on equity of 17.89% and a net margin of 2.87%.The firm's quarterly revenue was down 10.1% on a year-over-year basis. During the same period in the prior year, the firm posted $1.51 EPS. Equities research analysts forecast that Builders FirstSource will post 5.58 EPS for the current year.

Builders FirstSource announced that its Board of Directors has initiated a share repurchase program on Thursday, April 30th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 5.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its stock is undervalued.

Insider Activity at Builders FirstSource

In related news, Director Paul S. Levy purchased 50,000 shares of Builders FirstSource stock in a transaction that occurred on Friday, March 13th. The shares were acquired at an average cost of $87.73 per share, for a total transaction of $4,386,500.00. Following the transaction, the director directly owned 1,727,191 shares in the company, valued at $151,526,466.43. The trade was a 2.98% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 2.70% of the company's stock.

Institutional Investors Weigh In On Builders FirstSource

A number of large investors have recently made changes to their positions in the business. Capital International Investors purchased a new position in shares of Builders FirstSource in the 3rd quarter valued at approximately $429,640,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Builders FirstSource by 99,084.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company's stock worth $230,634,000 after buying an additional 2,239,301 shares in the last quarter. Franklin Resources Inc. lifted its position in shares of Builders FirstSource by 2,498.8% in the third quarter. Franklin Resources Inc. now owns 1,854,525 shares of the company's stock worth $224,861,000 after buying an additional 1,783,164 shares in the last quarter. Sands Capital Management LLC raised its position in Builders FirstSource by 139.1% during the third quarter. Sands Capital Management LLC now owns 2,430,902 shares of the company's stock valued at $294,747,000 after purchasing an additional 1,414,129 shares during the period. Finally, Victory Capital Management Inc. raised its position in Builders FirstSource by 235.1% during the third quarter. Victory Capital Management Inc. now owns 1,893,483 shares of the company's stock valued at $229,585,000 after purchasing an additional 1,328,363 shares during the period. 95.53% of the stock is currently owned by institutional investors.

Key Builders FirstSource News

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Board authorizes $500 million buyback (≈5.4% of shares), which supports EPS and signals management believes shares are undervalued; buybacks can offset weak free cash flow in the near term and are often seen as shareholder-friendly. RTT News - Buyback
• Positive Sentiment: Some analysts (e.g., William Blair coverage cited by TipRanks) remain constructive — Buy/outperform ratings point to a view that valuation is depressed and margins can recover over time, providing a bullish counterweight for longer-term investors. TipRanks - Analyst Maintains Buy
• Neutral Sentiment: Revenue beat consensus: Q1 sales were $3.29B vs. ~$3.17B expected, showing demand still generates top-line, but revenue was down ~10% YoY — a mixed signal (top-line resilience versus meaningful volume decline). Zacks - Sales Beat
• Negative Sentiment: Q1 profit miss and swing to weaker profitability: EPS was $0.27 vs. $0.39 consensus and well below prior-year $1.51, and management outlined softer demand and margin pressure — results and commentary weigh on near-term earnings expectations. Zacks - EPS Miss
• Negative Sentiment: Management trimmed 2026 profitability and free-cash-flow expectations and signaled continued volume pressure tied to a tougher housing backdrop — investors reacted to weaker guidance and reduced margin/FCF visibility. Quiver Quant - Slides After Q1 Loss & Weaker Outlook
• Negative Sentiment: Coverage and press note a deteriorating quarter and governance moves (new legal leader) as the company responds to elevated risk and loss — this can increase short-term uncertainty for investors focused on execution and controls. Yahoo Finance - Adds Legal Leader MDM - Financials Slide

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.