Builders FirstSource (NYSE:BLDR) Shares Gap Up - What's Next?

Key Points

• Shares gapped up premarket — the stock opened at $89.05 vs. a prior close of $83.90 and was trading around $92.10 with volume ~841,078 (about a 5.5% intraday rise).
• Analyst views are mixed: the consensus is a "Hold" with an average target of $121.39 (9 Buys, 10 Holds, 3 Sells), while firms like RBC raised to Outperform and Weiss downgraded to Sell.
• Fundamentals and insider activity: the company missed the quarter (EPS $1.12 vs. $1.30 estimate, revenue down 12.1% y/y), and Director Paul S. Levy purchased 50,000 shares at $87.73 (~$4.39M).

Shares of Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $83.90, but opened at $89.05. Builders FirstSource shares last traded at $92.0970, with a volume of 841,078 shares.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Royal Bank Of Canada raised Builders FirstSource from a "sector perform" rating to an "outperform" rating and set a $119.00 price objective on the stock in a report on Thursday, March 5th. Weiss Ratings lowered Builders FirstSource from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 20th. DA Davidson dropped their price objective on Builders FirstSource from $115.00 to $111.00 and set a "neutral" rating on the stock in a report on Monday, February 2nd. Stephens reaffirmed an "equal weight" rating and set a $125.00 price objective on shares of Builders FirstSource in a report on Tuesday, March 24th. Finally, William Blair assumed coverage on Builders FirstSource in a report on Thursday, February 26th. They set an "outperform" rating on the stock. Nine equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $121.39.

Builders FirstSource Stock Up 5.5%

The firm has a market cap of $9.79 billion, a price-to-earnings ratio of 22.81, a P/E/G ratio of 2.12 and a beta of 1.63. The firm's 50 day moving average price is $95.50 and its two-hundred day moving average price is $107.67. 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 (NYSE:BLDR - Get Free Report) last announced its earnings results on Tuesday, February 17th. The company reported $1.12 earnings per share for the quarter, missing the consensus estimate of $1.30 by ($0.18). Builders FirstSource had a return on equity of 17.89% and a net margin of 2.87%.The business had revenue of $3.36 billion for the quarter, compared to analyst estimates of $3.46 billion. During the same quarter last year, the company posted $2.31 EPS. Builders FirstSource's quarterly revenue was down 12.1% on a year-over-year basis. As a group, sell-side analysts forecast that Builders FirstSource, Inc. will post 11.59 earnings per share for the current fiscal year.

Insider Buying and Selling at Builders FirstSource

In other Builders FirstSource news, Director Paul S. Levy bought 50,000 shares of the firm's stock in a transaction dated Friday, March 13th. The stock was acquired at an average price of $87.73 per share, for a total transaction of $4,386,500.00. Following the completion of the purchase, the director owned 1,727,191 shares of the company's stock, valued at approximately $151,526,466.43. This represents a 2.98% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 2.70% of the company's stock.

Institutional Investors Weigh In On Builders FirstSource

A number of hedge funds have recently added to or reduced their stakes in BLDR. Cromwell Holdings LLC lifted its position in Builders FirstSource by 1,323.5% in the fourth quarter. Cromwell Holdings LLC now owns 242 shares of the company's stock valued at $25,000 after purchasing an additional 225 shares during the period. Caitong International Asset Management Co. Ltd lifted its position in Builders FirstSource by 167.1% in the third 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. TD Waterhouse Canada Inc. acquired a new stake in Builders FirstSource in the third quarter valued at about $34,000. Transamerica Financial Advisors LLC lifted its position in Builders FirstSource by 90.2% in the fourth quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock valued at $38,000 after purchasing an additional 175 shares during the period. Finally, CYBER HORNET ETFs LLC acquired a new stake in Builders FirstSource in the second quarter valued at about $38,000. Institutional investors and hedge funds own 95.53% of the company's stock.

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.

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.