Builders FirstSource (NYSE:BLDR) Sets New 12-Month Low - Should You Sell?

Key Points

• Builders FirstSource (BLDR) hit a new 52-week low, trading as low as $73.14 amid recent weakness in the stock.
• Several analysts cut price targets after the latest updates, and the stock now carries a consensus Hold rating with an average target of $101.88.
• The company reported mixed quarterly results: revenue came in above expectations at $3.29 billion, but EPS missed estimates, and revenue fell 10.1% year over year.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $73.14 and last traded at $72.99, with a volume of 178814 shares trading hands. The stock had previously closed at $74.88.

Wall Street Analysts Forecast Growth

BLDR has been the topic of a number of research analyst reports. Royal Bank Of Canada decreased their price target on shares of Builders FirstSource from $110.00 to $107.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. Bank of America cut their target price on shares of Builders FirstSource from $123.00 to $100.00 and set a "neutral" rating for the company in a research report on Monday, April 20th. DA Davidson lowered their price target on Builders FirstSource from $111.00 to $84.00 and set a "neutral" rating on the stock in a research report on Friday, May 1st. Wells Fargo & Company dropped their price target on Builders FirstSource from $87.00 to $85.00 and set an "equal weight" rating for the company in a research note on Friday, May 1st. Finally, The Goldman Sachs Group reduced their price objective on Builders FirstSource from $110.00 to $101.00 in a research report on Friday, May 1st. Nine investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $101.88.

Builders FirstSource Stock Performance

The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.09. The stock has a market cap of $7.91 billion, a PE ratio of 28.10, a price-to-earnings-growth ratio of 1.86 and a beta of 1.49. The business has a 50 day moving average price of $86.26 and a two-hundred day moving average price of $103.13.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $0.27 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.12). The firm had revenue of $3.29 billion during the quarter, compared to analysts' expectations of $3.17 billion. Builders FirstSource had a return on equity of 14.89% and a net margin of 1.97%.The firm's quarterly revenue was down 10.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.51 earnings per share. As a group, equities research analysts forecast that Builders FirstSource, Inc. will post 4.26 EPS for the current fiscal year.

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

Insider Buying and Selling

In related news, Director Paul S. Levy purchased 50,000 shares of the business's stock in a transaction that occurred on Friday, March 13th. The shares were acquired at an average price of $87.73 per share, for a total transaction of $4,386,500.00. Following the completion of the acquisition, the director directly owned 1,727,191 shares in the company, valued at approximately $151,526,466.43. The trade was a 2.98% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 2.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Builders FirstSource

A number of institutional investors have recently bought and sold shares of the stock. Cromwell Holdings LLC boosted its position in Builders FirstSource by 1,323.5% during the 4th quarter. Cromwell Holdings LLC now owns 242 shares of the company's stock valued at $25,000 after acquiring an additional 225 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in shares of Builders FirstSource by 167.1% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock valued at $26,000 after purchasing an additional 132 shares during the period. Root Financial Partners LLC boosted its position in shares of Builders FirstSource by 43.6% during the first quarter. Root Financial Partners LLC now owns 372 shares of the company's stock valued at $31,000 after purchasing an additional 113 shares in the last quarter. TD Waterhouse Canada Inc. bought a new stake in shares of Builders FirstSource during the third quarter valued at approximately $34,000. Finally, Transamerica Financial Advisors LLC grew its stake in Builders FirstSource by 90.2% in the fourth quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock worth $38,000 after purchasing an additional 175 shares during the period. 95.53% of the stock is owned by institutional investors.

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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