Builders FirstSource (NYSE:BLDR) Stock Price Down 4.6% - Here's Why

Key Points

• Builders FirstSource shares fell 4.6% to approximately $71.62, while trading volume was 97% below the stock’s average daily volume.
• Recent analyst actions lowered price targets, with the consensus rating remaining “Hold” and an average target price of $90.35. Ratings include nine Buys, 11 Holds, and three Sells.
• The company missed quarterly expectations, reporting $1.17 in EPS versus $1.25 expected and revenue of $3.86 billion versus $3.91 billion forecast; revenue declined 8.8% year over year. Builders FirstSource also authorized a $500 million share buyback, covering up to 5.4% of outstanding shares.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report)'s share price traded down 4.6% during trading on Wednesday . The company traded as low as $73.06 and last traded at $71.6210. 78,373 shares were traded during mid-day trading, a decline of 97% from the average daily volume of 2,433,148 shares. The stock had previously closed at $75.10.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on BLDR shares. Stephens decreased their target price on Builders FirstSource from $125.00 to $100.00 and set an "equal weight" rating on the stock in a research report on Monday, April 27th. Oppenheimer reduced their price objective on shares of Builders FirstSource from $110.00 to $90.00 and set an "outperform" rating for the company in a research report on Friday, July 31st. UBS Group decreased their price objective on shares of Builders FirstSource from $122.00 to $88.00 and set a "buy" rating on the stock in a report on Friday, July 31st. Wolfe Research upgraded shares of Builders FirstSource to a "hold" rating in a research report on Thursday, May 14th. Finally, Zacks Research cut shares of Builders FirstSource from a "hold" rating to a "strong sell" rating in a research note on Monday, August 3rd. Nine investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have assigned 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 $90.35.

Builders FirstSource Price Performance

The company has a debt-to-equity ratio of 1.14, a current ratio of 1.79 and a quick ratio of 1.09. The stock has a 50 day moving average price of $76.68 and a 200-day moving average price of $87.03. The stock has a market capitalization of $7.82 billion, a price-to-earnings ratio of 79.90, a price-to-earnings-growth ratio of 2.34 and a beta of 1.44.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.17 EPS for the quarter, missing the consensus estimate of $1.25 by ($0.08). The firm 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 11.73% and a net margin of 0.71%.The firm's revenue for the quarter was down 8.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.38 earnings per share. On average, analysts forecast that Builders FirstSource, Inc. will post 3.15 earnings per share for the current year.

Builders FirstSource announced that its board has initiated a share buyback 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 shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Builders FirstSource

Hedge funds and other institutional investors have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd raised its holdings in 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 acquiring an additional 132 shares during the last quarter. Sunbelt Securities Inc. boosted its holdings in shares of Builders FirstSource by 508.5% during the 1st quarter. Sunbelt Securities Inc. now owns 359 shares of the company's stock worth $30,000 after purchasing an additional 300 shares during the last quarter. Root Financial Partners LLC boosted its holdings in shares of 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 purchasing an additional 113 shares during the last quarter. Transamerica Financial Advisors LLC grew its position in shares of 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 in the last quarter. Finally, CYBER HORNET ETFs LLC purchased a new position in Builders FirstSource during the second quarter worth approximately $38,000. 95.53% of the stock is owned by hedge funds and other 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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