Builders FirstSource (NYSE:BLDR) Stock Price Down 4.7% - Should You Sell?

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) traded down 4.7% on Monday . The stock traded as low as $103.16 and last traded at $102.66. 304,630 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 1,669,803 shares. The stock had previously closed at $107.68.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. Raymond James reiterated an "outperform" rating and issued a $140.00 target price (down previously from $170.00) on shares of Builders FirstSource in a research note on Friday, May 2nd. Royal Bank of Canada reiterated an "outperform" rating and issued a $132.00 target price on shares of Builders FirstSource in a research note on Thursday, May 15th. Loop Capital reduced their target price on shares of Builders FirstSource from $190.00 to $170.00 and set a "buy" rating for the company in a research note on Monday, April 14th. The Goldman Sachs Group reduced their target price on shares of Builders FirstSource from $200.00 to $180.00 and set a "buy" rating for the company in a research note on Friday, February 21st. Finally, Robert W. Baird set a $130.00 target price on shares of Builders FirstSource in a research note on Friday, May 2nd. Six investment analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, Builders FirstSource has a consensus rating of "Moderate Buy" and a consensus target price of $167.58.

Builders FirstSource Trading Up 2.3%

The company has a market cap of $12.45 billion, a price-to-earnings ratio of 12.44, a price-to-earnings-growth ratio of 0.80 and a beta of 1.79. The company's fifty day moving average price is $116.00 and its two-hundred day moving average price is $140.55. The company has a quick ratio of 1.16, a current ratio of 1.77 and a debt-to-equity ratio of 0.86.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its quarterly earnings data on Thursday, May 1st. The company reported $1.51 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.01. The company had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.67 billion. Builders FirstSource had a net margin of 6.57% and a return on equity of 30.54%. The company's revenue was down 6.0% on a year-over-year basis. During the same quarter last year, the business posted $2.65 earnings per share. Research analysts expect that Builders FirstSource, Inc. will post 11.59 earnings per share for the current year.

Builders FirstSource announced that its board has authorized a stock buyback program on Thursday, May 1st that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to reacquire up to 3.9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's management believes its stock is undervalued.

Insider Transactions at Builders FirstSource

In related news, Director Paul S. Levy purchased 283,517 shares of the stock in a transaction that occurred on Thursday, May 8th. The stock was acquired at an average price of $111.21 per share, with a total value of $31,529,925.57. Following the completion of the acquisition, the director now directly owns 1,672,687 shares in the company, valued at approximately $186,019,521.27. This trade represents a 20.41% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Dirkson R. Charles purchased 5,000 shares of the stock in a transaction that occurred on Tuesday, May 27th. The stock was bought at an average cost of $109.67 per share, with a total value of $548,350.00. Following the acquisition, the director now owns 5,000 shares of the company's stock, valued at $548,350. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders bought 505,000 shares of company stock valued at $56,032,120. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Builders FirstSource

Hedge funds and other institutional investors have recently bought and sold shares of the business. Smartleaf Asset Management LLC boosted its stake in Builders FirstSource by 34.9% in the fourth quarter. Smartleaf Asset Management LLC now owns 518 shares of the company's stock valued at $74,000 after acquiring an additional 134 shares during the last quarter. Mountain Lake Investment Management LLC boosted its stake in Builders FirstSource by 7.0% in the fourth quarter. Mountain Lake Investment Management LLC now owns 36,367 shares of the company's stock valued at $5,201,000 after acquiring an additional 2,367 shares during the last quarter. Fisher Asset Management LLC boosted its stake in Builders FirstSource by 14.9% in the fourth quarter. Fisher Asset Management LLC now owns 196,491 shares of the company's stock valued at $28,084,000 after acquiring an additional 25,535 shares during the last quarter. Fiera Capital Corp bought a new position in Builders FirstSource in the fourth quarter valued at approximately $27,089,000. Finally, Lecap Asset Management Ltd. boosted its stake in Builders FirstSource by 82.6% in the fourth quarter. Lecap Asset Management Ltd. now owns 22,043 shares of the company's stock valued at $3,151,000 after acquiring an additional 9,970 shares during the last quarter. 95.53% of the stock is owned by institutional investors.

Builders FirstSource Company Profile

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.