Builders FirstSource (NYSE:BLDR) Trading Up 5.1% - Should You Buy?

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) traded up 5.1% on Friday . The company traded as high as $112.76 and last traded at $112.28. 1,361,439 shares were traded during mid-day trading, a decline of 25% from the average session volume of 1,821,621 shares. The stock had previously closed at $106.85.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Stephens reduced their price objective on shares of Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating on the stock in a research note on Friday, May 2nd. Stifel Nicolaus dropped their price objective on shares of Builders FirstSource from $125.00 to $118.00 and set a "hold" rating on the stock in a report on Monday, May 5th. Royal Bank Of Canada reiterated an "outperform" rating and set a $132.00 price target on shares of Builders FirstSource in a research report on Thursday, May 15th. Wedbush dropped their target price on Builders FirstSource from $190.00 to $145.00 and set an "outperform" rating on the stock in a report on Friday. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of Builders FirstSource in a research report on Tuesday, April 1st. They set a "buy" rating and a $151.00 price objective for the company. Five equities research analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $163.11.

Builders FirstSource Trading Up 3.9%

The firm's fifty day simple moving average is $113.64 and its 200-day simple moving average is $134.15. The stock has a market cap of $13.18 billion, a P/E ratio of 15.30, a price-to-earnings-growth ratio of 7.31 and a beta of 1.70. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.07 and a current ratio of 1.82.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its earnings results on Thursday, May 1st. The company reported $1.51 earnings per share for the quarter, beating analysts' consensus estimates of $1.50 by $0.01. The company had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.67 billion. Builders FirstSource had a return on equity of 28.02% and a net margin of 5.66%. The company's revenue for the quarter was down 6.0% on a year-over-year basis. During the same quarter last year, the company earned $2.65 earnings per share. Equities research analysts expect that Builders FirstSource, Inc. will post 11.59 EPS for the current fiscal year.

Builders FirstSource declared that its board has approved a stock buyback program on Thursday, May 1st that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to purchase up to 3.9% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Dirkson R. Charles acquired 5,000 shares of Builders FirstSource stock in a transaction dated Tuesday, May 27th. The shares were purchased at an average cost of $109.67 per share, for a total transaction of $548,350.00. Following the transaction, the director now owns 5,000 shares of the company's stock, valued at $548,350. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Paul S. Levy purchased 283,517 shares of the business's stock in a transaction on Thursday, May 8th. The stock was purchased at an average cost of $111.21 per share, for a total transaction of $31,529,925.57. Following the acquisition, the director now owns 1,672,687 shares in the company, valued at approximately $186,019,521.27. The trade was a 20.41% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased a total of 505,000 shares of company stock worth $56,032,120 over the last 90 days. Corporate insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. IMA Advisory Services Inc. bought a new position in shares of Builders FirstSource during the first quarter valued at $31,000. SBI Securities Co. Ltd. bought a new position in shares of Builders FirstSource in the fourth quarter worth approximately $34,000. Sentry Investment Management LLC bought a new position in Builders FirstSource in the 1st quarter worth $40,000. CX Institutional bought a new stake in Builders FirstSource during the 1st quarter valued at approximately $45,000. Finally, Smartleaf Asset Management LLC raised its position in shares of Builders FirstSource by 34.9% during the fourth quarter. Smartleaf Asset Management LLC now owns 518 shares of the company's stock valued at $74,000 after buying an additional 134 shares during the last quarter. 95.53% of the stock is owned by hedge funds and other institutional investors.

About Builders FirstSource

Builders FirstSource, Inc, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.