Builders FirstSource (NYSE:BLDR) Price Target Cut to $90.00 by Analysts at Truist Financial

Key Points

• Truist Financial cut Builders FirstSource’s price target from $115 to $90 while maintaining a Buy rating, implying 36.12% upside from the $66.12 share price. The broader analyst consensus is Hold with a $98.21 target.
• Recent quarterly results were weaker than expected: EPS came in at $1.17 versus $1.25 expected, revenue reached $3.86 billion versus $3.91 billion forecast, and revenue declined 8.8% year over year.
• The company authorized a $500 million share-repurchase program, allowing it to buy back up to 5.4% of outstanding shares, although softer housing activity and reduced outlook expectations continue to weigh on the stock.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price objective lowered by investment analysts at Truist Financial from $115.00 to $90.00 in a report released on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. Truist Financial's price target indicates a potential upside of 36.12% from the stock's current price.

Several other equities analysts also recently weighed in on the company. The Goldman Sachs Group lowered their target price on Builders FirstSource from $110.00 to $101.00 in a research report on Friday, May 1st. Robert W. Baird decreased their price objective on Builders FirstSource from $125.00 to $95.00 in a research note on Friday, May 1st. Zacks Research upgraded Builders FirstSource from a "strong sell" rating to a "hold" rating in a research note on Friday, July 3rd. Raymond James Financial reduced their target price on shares of Builders FirstSource from $140.00 to $100.00 in a report on Friday, May 1st. Finally, Wolfe Research upgraded shares of Builders FirstSource to a "hold" rating in a research note on Thursday, May 14th. Nine investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $98.21.

Builders FirstSource Stock Performance

Shares of NYSE BLDR opened at $66.12 on Friday. The firm has a 50 day moving average of $77.08 and a 200 day moving average of $90.01. The company has a current ratio of 1.76, a quick ratio of 1.09 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $7.11 billion, a price-to-earnings ratio of 25.33, a price-to-earnings-growth ratio of 1.67 and a beta of 1.42. Builders FirstSource has a 12-month low of $65.10 and a 12-month high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.17 earnings per share for the quarter, missing the consensus estimate of $1.25 by ($0.08). The business had revenue of $3.86 billion during the quarter, compared to the consensus estimate of $3.91 billion. Builders FirstSource had a return on equity of 14.89% and a net margin of 1.97%.The firm's revenue was down 8.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.38 earnings per share. On average, research analysts anticipate that Builders FirstSource will post 4.16 earnings per share for the current year.

Builders FirstSource announced that its board has initiated a stock repurchase program on Thursday, April 30th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Builders FirstSource

Institutional investors and hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd grew its stake in Builders FirstSource by 167.1% during the third quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock valued at $26,000 after acquiring an additional 132 shares in the last quarter. Cromwell Holdings LLC increased its holdings in shares of Builders FirstSource by 1,323.5% in the fourth quarter. Cromwell Holdings LLC now owns 242 shares of the company's stock worth $25,000 after purchasing an additional 225 shares during the last quarter. CYBER HORNET ETFs LLC purchased a new stake in shares of Builders FirstSource in the second quarter worth about $38,000. MUFG Securities EMEA plc bought a new position in Builders FirstSource during the second quarter valued at approximately $38,000. Finally, Sunbelt Securities Inc. grew its holdings in Builders FirstSource by 508.5% during the 1st quarter. Sunbelt Securities Inc. now owns 359 shares of the company's stock valued at $30,000 after buying an additional 300 shares in the last quarter. Institutional investors own 95.53% of the company's stock.

Trending Headlines about Builders FirstSource

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

• Positive Sentiment: An insider reportedly purchased 50,000 BLDR shares for approximately $4.4 million, potentially signaling confidence that the stock’s decline has created long-term value. Builders FirstSource Falls as Investors Weigh Weak Housing Signals and Earnings Risk
• Positive Sentiment: Despite near-term weakness, several analysts’ price targets remain above the current share price, with reported targets ranging from $84 to $122 and a median of $100, suggesting some investors still expect a housing-demand recovery. Builders FirstSource analyst and price target data
• Neutral Sentiment: BMO Capital Markets maintained a Hold rating, while Stifel Nicolaus also kept its Hold rating, indicating limited conviction among analysts following the earnings release. BMO Capital Keeps Their Hold Rating on Builders FirstSource Stifel Nicolaus Keeps Hold Rating on Builders FirstSource
• Negative Sentiment: BLDR reported second-quarter EPS of $1.17, below estimates of approximately $1.25–$1.29 and down sharply from $2.38 a year earlier. Revenue of $3.86 billion also missed the $3.91 billion consensus and declined 8.8% year over year. Builders FirstSource Q2 Earnings Snapshot
• Negative Sentiment: The company now expects 2026 revenue of $14.0 billion to $14.8 billion, below the $14.8 billion analyst estimate at the midpoint or upper end, adding to concerns about weaker housing activity. Builders FirstSource Stock Down as Q2 Earnings and Sales Miss Estimates
• Negative Sentiment: Recent housing data showing softer single-family starts and lower permits has further weakened the outlook for suppliers of building materials and services. Investors are also digesting prior reductions to BLDR’s full-year revenue and adjusted EBITDA expectations. Builders FirstSource Falls as Investors Weigh Weak Housing Signals and Earnings Risk

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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