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

Key Points

• DA Davidson cut its price objective on Builders FirstSource from $111 to $84 (implying ~7.3% upside), and other firms have trimmed targets too, leaving a consensus "Hold" rating with a $106.31 average price target.
• Q1 results showed an EPS miss ($0.27 vs. $0.39 expected) and revenue down ~10.1% year-over-year despite a $3.29B top line, and management lowered 2026 profitability and free-cash-flow expectations, weighing on near-term earnings visibility.
• The board approved a $500 million share buyback (~5.4% of shares) and a director bought 50,000 shares, providing a positive governance/insider-confidence signal amid the operational slowdown.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price objective reduced by equities research analysts at DA Davidson from $111.00 to $84.00 in a research note issued on Friday,MarketScreener reports. DA Davidson's price target would suggest a potential upside of 7.29% from the company's current price.

Several other research firms also recently issued reports on BLDR. Deutsche Bank Aktiengesellschaft lowered their price objective on Builders FirstSource from $117.00 to $102.00 and set a "hold" rating for the company in a research note on Monday, February 23rd. Jefferies Financial Group cut their target price on shares of Builders FirstSource from $110.00 to $85.00 and set a "hold" rating on the stock in a research report on Monday, April 13th. Benchmark reduced their target price on shares of Builders FirstSource from $138.00 to $105.00 and set a "buy" rating on the stock in a report on Friday. Zacks Research upgraded shares of Builders FirstSource from a "strong sell" rating to a "hold" rating in a research report on Friday, March 20th. Finally, William Blair began coverage on shares of Builders FirstSource in a research note on Thursday, February 26th. They set an "outperform" rating for the company. Ten investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $106.31.

Builders FirstSource Trading Down 1.0%

NYSE BLDR opened at $78.29 on Friday. The company has a market cap of $8.66 billion, a price-to-earnings ratio of 20.21, a price-to-earnings-growth ratio of 2.51 and a beta of 1.63. Builders FirstSource has a twelve month low of $76.50 and a twelve month high of $151.03. The company has a quick ratio of 1.16, a current ratio of 1.86 and a debt-to-equity ratio of 1.02. The business's fifty day moving average is $89.22 and its 200 day moving average is $105.05.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its earnings results 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 during the quarter, compared to analyst estimates of $3.17 billion. Builders FirstSource had a return on equity of 17.89% and a net margin of 2.87%.Builders FirstSource's revenue for the quarter was down 10.1% on a year-over-year basis. During the same period in the previous year, the company earned $1.51 EPS. As a group, sell-side analysts expect that Builders FirstSource will post 5.58 EPS for the current fiscal year.

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

Insiders Place Their Bets

In other news, Director Paul S. Levy bought 50,000 shares of the firm's stock in a transaction on Friday, March 13th. The stock was acquired at an average price of $87.73 per share, with a total value of $4,386,500.00. Following the transaction, the director owned 1,727,191 shares of the company's stock, valued at $151,526,466.43. This trade represents a 2.98% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 2.70% of the company's stock.

Institutional Investors Weigh In On Builders FirstSource

Institutional investors have recently modified their holdings of the company. Cromwell Holdings LLC raised its stake in Builders FirstSource by 1,323.5% during the fourth quarter. Cromwell Holdings LLC now owns 242 shares of the company's stock worth $25,000 after buying an additional 225 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its position in Builders FirstSource by 167.1% during the third 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. Root Financial Partners LLC boosted its position in Builders FirstSource by 43.6% during the first quarter. Root Financial Partners LLC now owns 372 shares of the company's stock valued at $31,000 after acquiring an additional 113 shares during the last quarter. TD Waterhouse Canada Inc. acquired a new stake in Builders FirstSource during the 3rd quarter worth about $34,000. Finally, Transamerica Financial Advisors LLC grew its holdings in Builders FirstSource by 90.2% during the 4th quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock worth $38,000 after acquiring an additional 175 shares during the period. 95.53% of the stock is owned by institutional investors.

Trending Headlines about Builders FirstSource

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Board authorizes $500 million buyback (≈5.4% of shares), which supports EPS and signals management believes shares are undervalued; buybacks can offset weak free cash flow in the near term and are often seen as shareholder-friendly. RTT News - Buyback
• Positive Sentiment: Some analysts (e.g., William Blair coverage cited by TipRanks) remain constructive — Buy/outperform ratings point to a view that valuation is depressed and margins can recover over time, providing a bullish counterweight for longer-term investors. TipRanks - Analyst Maintains Buy
• Neutral Sentiment: Revenue beat consensus: Q1 sales were $3.29B vs. ~$3.17B expected, showing demand still generates top-line, but revenue was down ~10% YoY — a mixed signal (top-line resilience versus meaningful volume decline). Zacks - Sales Beat
• Negative Sentiment: Q1 profit miss and swing to weaker profitability: EPS was $0.27 vs. $0.39 consensus and well below prior-year $1.51, and management outlined softer demand and margin pressure — results and commentary weigh on near-term earnings expectations. Zacks - EPS Miss
• Negative Sentiment: Management trimmed 2026 profitability and free-cash-flow expectations and signaled continued volume pressure tied to a tougher housing backdrop — investors reacted to weaker guidance and reduced margin/FCF visibility. Quiver Quant - Slides After Q1 Loss & Weaker Outlook
• Negative Sentiment: Coverage and press note a deteriorating quarter and governance moves (new legal leader) as the company responds to elevated risk and loss — this can increase short-term uncertainty for investors focused on execution and controls. Yahoo Finance - Adds Legal Leader MDM - Financials Slide

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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