Builders FirstSource (NYSE:BLDR) Reaches New 52-Week Low Following Weak Earnings

Key Points

• Builders FirstSource shares hit a new 52-week low after quarterly earnings missed expectations, with EPS of $1.17 versus $1.25 expected and revenue of $3.86 billion versus $3.91 billion forecast.
• Revenue fell 8.8% year over year, while EPS declined from $2.38 a year earlier; fiscal 2026 revenue guidance of $14.0 billion to $14.8 billion also raised concerns about slowing housing and construction demand.
• The board authorized a $500 million share buyback, while analyst sentiment remained mixed: the average rating is “Hold,” though some analysts continue to see longer-term upside and an insider reportedly purchased 50,000 shares.

Shares of Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) hit a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $65.10 and last traded at $66.7660, with a volume of 170666 shares traded. The stock had previously closed at $66.01.

The company reported $1.17 earnings per share for the quarter, missing analysts' consensus estimates of $1.25 by ($0.08). The business had revenue of $3.86 billion for the quarter, compared to analysts' expectations of $3.91 billion. Builders FirstSource had a return on equity of 14.89% and a net margin of 1.97%.The business's revenue for the quarter was down 8.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.38 earnings per share.

Builders FirstSource declared that its board has approved a share buyback plan on Thursday, April 30th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 5.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Builders FirstSource News Roundup

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

• Positive Sentiment: Truist Financial lowered its price target from $115 to $90 but maintained a Buy rating, implying substantial potential upside from current levels. The revised target reflects a more cautious outlook while still indicating confidence in a longer-term recovery. Benzinga
• Positive Sentiment: An insider reportedly purchased 50,000 BLDR shares, an investment that may signal confidence that the recent selloff has created value. Quiver Quantitative analysis
• Neutral Sentiment: Analyst sentiment remains mixed but not broadly bearish: BMO Capital Markets and Stifel Nicolaus maintained Hold ratings, while Truist retained its Buy recommendation. BMO Capital Markets report
• Negative Sentiment: BLDR’s second-quarter results missed expectations, with earnings of $1.17 per share versus the $1.25 consensus and revenue of $3.86 billion versus $3.91 billion expected. Revenue declined 8.8% year over year, while EPS fell from $2.38 a year earlier. Builders FirstSource earnings report
• Negative Sentiment: Management issued fiscal 2026 revenue guidance of $14.0 billion to $14.8 billion, below the $14.8 billion analyst consensus at the midpoint-to-low end, reinforcing concerns about slowing demand. Zacks earnings outlook
• Negative Sentiment: Softening single-family housing starts and building permits are weighing on expectations for construction-material suppliers. Investors are also concerned that the housing recovery may be delayed, pressuring sales and profitability. Housing and earnings analysis

Wall Street Analyst Weigh In

BLDR has been the topic of several recent analyst reports. Zacks Research upgraded shares of Builders FirstSource from a "strong sell" rating to a "hold" rating in a report on Friday, July 3rd. Oppenheimer dropped their target price on shares of Builders FirstSource from $121.00 to $110.00 and set an "outperform" rating for the company in a report on Thursday, July 23rd. Raymond James Financial cut their target price on Builders FirstSource from $140.00 to $100.00 in a research report on Friday, May 1st. Wells Fargo & Company decreased their price target on Builders FirstSource from $87.00 to $85.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Finally, Weiss Ratings lowered Builders FirstSource from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, July 21st. Nine research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $95.64.

Hedge Funds Weigh In On Builders FirstSource

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Daiwa Securities Group Inc. increased its position in shares of Builders FirstSource by 0.4% during the second quarter. Daiwa Securities Group Inc. now owns 17,630 shares of the company's stock worth $2,057,000 after purchasing an additional 78 shares in the last quarter. New Mexico Educational Retirement Board boosted its position in shares of Builders FirstSource by 2.0% in the 4th quarter. New Mexico Educational Retirement Board now owns 5,100 shares of the company's stock valued at $525,000 after purchasing an additional 100 shares during the period. Moors & Cabot Inc. boosted its position in shares of Builders FirstSource by 1.5% in the 4th quarter. Moors & Cabot Inc. now owns 7,388 shares of the company's stock valued at $760,000 after purchasing an additional 109 shares during the period. Root Financial Partners LLC grew its stake in Builders FirstSource by 43.6% during the 1st quarter. Root Financial Partners LLC now owns 372 shares of the company's stock worth $31,000 after buying an additional 113 shares during the last quarter. Finally, CIBC Private Wealth Group LLC grew its stake in Builders FirstSource by 5.9% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,272 shares of the company's stock worth $275,000 after buying an additional 126 shares during the last quarter. Hedge funds and other institutional investors own 95.53% of the company's stock.

Builders FirstSource Stock Down 0.4%

The stock has a market cap of $7.07 billion, a PE ratio of 25.20, a P/E/G ratio of 1.67 and a beta of 1.42. The business 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.

About Builders FirstSource

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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