Citizens Jmp Initiates Coverage on Builders FirstSource (NYSE:BLDR)

Key Points

• Citizens JMP initiated coverage of Builders FirstSource with a “market perform” rating. The broader analyst consensus is also “Hold,” with a consensus price target of $90.35.
• Builders FirstSource opened at $70.31, near its 52-week low of $65.10 and well below its 52-week high of $151.03. Several analysts recently cut their price targets, though UBS and Royal Bank of Canada maintained “Buy” or “Outperform” ratings.
• The company’s latest quarterly results fell short of expectations, with earnings per share of $1.17 versus the $1.25 consensus and revenue down 8.8% year over year to $3.86 billion. Separately, Builders FirstSource authorized a $500 million share repurchase program, allowing it to buy back up to 5.4% of outstanding shares.

Research analysts at Citizens Jmp assumed coverage on shares of Builders FirstSource (NYSE:BLDR - Get Free Report) in a research report issued to clients and investors on Friday,Benzinga reports. The firm set a "market perform" rating on the stock.

Other research analysts also recently issued reports about the company. Zacks Research downgraded Builders FirstSource from a "hold" rating to a "strong sell" rating in a research note on Monday, August 3rd. Wells Fargo & Company lowered their price target on Builders FirstSource from $85.00 to $65.00 and set an "equal weight" rating on the stock in a research report on Friday, July 31st. Stifel Nicolaus decreased their target price on Builders FirstSource from $76.00 to $70.00 and set a "hold" rating on the stock in a report on Thursday, July 23rd. UBS Group reduced their price objective on shares of Builders FirstSource from $122.00 to $88.00 and set a "buy" rating for the company in a research report on Friday, July 31st. Finally, Royal Bank Of Canada reduced their target price on shares of Builders FirstSource from $107.00 to $88.00 and set an "outperform" rating for the company in a report on Friday, July 31st. Nine investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $90.35.

Builders FirstSource Price Performance

NYSE BLDR opened at $70.31 on Friday. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.09 and a current ratio of 1.79. Builders FirstSource has a 52-week low of $65.10 and a 52-week high of $151.03. The business has a 50 day simple moving average of $76.12 and a 200 day simple moving average of $84.69. The stock has a market cap of $7.57 billion, a price-to-earnings ratio of 77.26, a PEG ratio of 2.35 and a beta of 1.44.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $1.17 earnings per share for the quarter, missing analysts' consensus estimates of $1.25 by ($0.08). Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%.The company had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.91 billion. During the same period in the previous year, the company posted $2.38 earnings per share. Builders FirstSource's revenue for the quarter was down 8.8% on a year-over-year basis. Analysts anticipate that Builders FirstSource will post 3.15 earnings per share for the current fiscal year.

Builders FirstSource announced that its Board of Directors has initiated a share repurchase program on Thursday, April 30th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 5.4% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd boosted its stake 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 buying an additional 132 shares in the last quarter. CYBER HORNET ETFs LLC acquired a new position in Builders FirstSource during the 2nd quarter worth about $38,000. MUFG Securities EMEA plc acquired a new stake in Builders FirstSource during the 2nd quarter valued at approximately $38,000. Sunbelt Securities Inc. increased its position in shares of Builders FirstSource by 508.5% during the first quarter. Sunbelt Securities Inc. now owns 359 shares of the company's stock worth $30,000 after buying an additional 300 shares during the period. Finally, Transamerica Financial Advisors LLC boosted its position in Builders FirstSource by 90.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock valued at $38,000 after acquiring an additional 175 shares during the last quarter. 95.53% of the stock is currently owned by institutional investors and hedge funds.

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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