DA Davidson Issues Pessimistic Forecast for Builders FirstSource (NYSE:BLDR) Stock Price

Key Points

• DA Davidson has downgraded the price target for Builders FirstSource (NYSE:BLDR) from $135.00 to $125.00, indicating a potential downside of 2.53% from the stock's previous close.
• Despite the downgrade, Builders FirstSource has received mixed ratings, with one analyst rating it as a sell, nine as hold, and twelve as buy, resulting in a consensus rating of "Moderate Buy" with an average target price of $156.16.
• The company reported $2.38 earnings per share for the last quarter, beating estimates, but its revenue declined by 5.0% year-over-year.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price target dropped by research analysts at DA Davidson from $135.00 to $125.00 in a report released on Monday,Benzinga reports. The firm presently has a "neutral" rating on the stock. DA Davidson's target price would indicate a potential downside of 2.53% from the stock's previous close.

Several other analysts also recently issued reports on the company. Stifel Nicolaus increased their price target on Builders FirstSource from $118.00 to $128.00 and gave the company a "hold" rating in a report on Friday. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $134.00 price objective on shares of Builders FirstSource in a report on Friday. Loop Capital reduced their price objective on shares of Builders FirstSource from $190.00 to $170.00 and set a "buy" rating for the company in a report on Monday, April 14th. BMO Capital Markets dropped their price target on shares of Builders FirstSource from $146.00 to $135.00 and set a "market perform" rating on the stock in a research report on Monday, May 5th. Finally, UBS Group cut their price objective on Builders FirstSource from $180.00 to $163.00 and set a "buy" rating on the stock in a report on Friday, May 2nd. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and twelve have given a buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $156.16.

Builders FirstSource Stock Performance

Shares of NYSE BLDR traded down $1.94 during midday trading on Monday, reaching $128.24. The company had a trading volume of 2,662,584 shares, compared to its average volume of 1,961,830. The company has a current ratio of 1.79, a quick ratio of 1.08 and a debt-to-equity ratio of 1.12. The business's 50-day simple moving average is $120.51 and its 200 day simple moving average is $128.65. Builders FirstSource has a 1 year low of $102.60 and a 1 year high of $203.14. The stock has a market cap of $14.18 billion, a P/E ratio of 19.46, a P/E/G ratio of 11.90 and a beta of 1.68.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $2.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. Builders FirstSource had a net margin of 4.74% and a return on equity of 24.61%. The business had revenue of $4.23 billion for the quarter, compared to the consensus estimate of $4.29 billion. During the same period in the previous year, the firm earned $3.50 EPS. The business's revenue was down 5.0% on a year-over-year basis. On average, analysts forecast that Builders FirstSource will post 11.59 earnings per share for the current fiscal year.

Builders FirstSource announced that its Board of Directors has approved a stock repurchase plan on Thursday, May 1st that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 3.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board of directors believes its shares are undervalued.

Insider Activity at Builders FirstSource

In other Builders FirstSource news, Director Dirkson R. Charles purchased 5,000 shares of the firm's 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 completion of the transaction, the director owned 5,000 shares of the company's stock, valued at $548,350. The trade was a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Paul S. Levy purchased 283,517 shares of the firm's stock in a transaction that occurred on Thursday, May 8th. The shares were acquired at an average cost of $111.21 per share, with a total value of $31,529,925.57. Following the completion of the transaction, the director directly owned 1,672,687 shares of the company's stock, valued at $186,019,521.27. The trade was a 20.41% increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders acquired 505,000 shares of company stock worth $56,032,120. Corporate insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Builders FirstSource

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. FMR LLC raised its position in Builders FirstSource by 7.3% during the 4th quarter. FMR LLC now owns 10,898,366 shares of the company's stock valued at $1,557,703,000 after purchasing an additional 740,214 shares during the last quarter. Wellington Management Group LLP raised its holdings in Builders FirstSource by 42.6% during the first quarter. Wellington Management Group LLP now owns 3,217,125 shares of the company's stock valued at $401,948,000 after acquiring an additional 960,603 shares during the period. Invesco Ltd. raised its holdings in Builders FirstSource by 11.8% during the first quarter. Invesco Ltd. now owns 2,519,461 shares of the company's stock valued at $314,781,000 after acquiring an additional 265,873 shares during the period. Diamond Hill Capital Management Inc. increased its holdings in shares of Builders FirstSource by 16.8% in the first quarter. Diamond Hill Capital Management Inc. now owns 2,270,362 shares of the company's stock worth $283,659,000 after purchasing an additional 326,923 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in Builders FirstSource by 0.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,244,449 shares of the company's stock worth $280,387,000 after acquiring an additional 6,453 shares during the last quarter. 95.53% of the stock is currently owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.