Builders FirstSource (NYSE:BLDR) Stock Rating Upgraded by Wolfe Research

Key Points

• Wolfe Research upgraded Builders FirstSource (NYSE:BLDR) to a hold rating, adding to a mixed analyst backdrop that now includes 9 Buy, 11 Hold, and 4 Sell ratings. The stock’s consensus rating remains Hold with an average price target of $101.88.
• BLDR also reported a weaker-than-expected quarter, posting EPS of $0.27 versus the $0.39 estimate, though revenue of $3.29 billion came in above expectations. Revenue was still down 10.1% year over year, and analysts expect full-year EPS of 4.26.
• The company authorized a $500 million share buyback, covering up to 5.4% of outstanding shares, which management and the board may view as a sign the stock is undervalued. Shares were trading around $73.54, near the 12-month low of $70.61 and well below the 12-month high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) was upgraded by Wolfe Research to a "hold" rating in a research note issued on Thursday,Zacks.com reports.

BLDR has been the topic of a number of other research reports. Stifel Nicolaus lowered their target price on shares of Builders FirstSource from $115.00 to $93.00 and set a "hold" rating on the stock in a research note on Monday, March 16th. Raymond James Financial lowered their price objective on Builders FirstSource from $140.00 to $100.00 in a research note on Friday, May 1st. BMO Capital Markets lowered their price objective on Builders FirstSource from $100.00 to $93.00 and set a "market perform" rating on the stock in a research note on Monday, May 4th. Benchmark lowered their price objective on Builders FirstSource from $138.00 to $105.00 and set a "buy" rating on the stock in a research note on Friday, May 1st. Finally, Zacks Research cut Builders FirstSource from a "hold" rating to a "strong sell" rating in a research report on Friday, May 1st. Nine analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $101.88.

Builders FirstSource Trading Up 1.7%

Shares of BLDR opened at $73.54 on Thursday. Builders FirstSource has a 12-month low of $70.61 and a 12-month high of $151.03. The company has a quick ratio of 1.09, a current ratio of 1.76 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $7.91 billion, a price-to-earnings ratio of 28.18, a P/E/G ratio of 1.73 and a beta of 1.49. The stock's 50-day moving average price is $84.62 and its 200 day moving average price is $102.06.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.39 by ($0.12). The firm had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.17 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The business's revenue for the quarter was down 10.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.51 earnings per share. As a group, research analysts predict that Builders FirstSource will post 4.26 earnings per share for the current year.

Builders FirstSource announced that its board has approved a stock buyback plan on Thursday, April 30th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 5.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at Builders FirstSource

In other news, Director Paul S. Levy acquired 50,000 shares of the firm's stock in a transaction on Friday, March 13th. The shares were purchased at an average cost of $87.73 per share, for a total transaction of $4,386,500.00. Following the transaction, 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 purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 2.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Builders FirstSource

Several hedge funds have recently added to or reduced their stakes in the company. State Street Corp boosted its stake in shares of Builders FirstSource by 2.3% in the 4th quarter. State Street Corp now owns 5,108,120 shares of the company's stock valued at $525,574,000 after purchasing an additional 115,857 shares during the last quarter. Capital International Investors bought a new position in shares of Builders FirstSource in the 3rd quarter valued at about $429,640,000. Wellington Management Group LLP boosted its stake in shares of Builders FirstSource by 2.3% in the 4th quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company's stock valued at $341,265,000 after purchasing an additional 73,835 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Builders FirstSource by 12.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,967,744 shares of the company's stock valued at $244,301,000 after purchasing an additional 325,935 shares during the last quarter. Finally, Geode Capital Management LLC boosted its stake in shares of Builders FirstSource by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 2,817,958 shares of the company's stock valued at $288,789,000 after purchasing an additional 14,420 shares during the last quarter. Institutional investors own 95.53% of the company's stock.

Builders FirstSource Company Profile

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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