50,578 Shares in Builders FirstSource, Inc. (NYSE:BLDR) Purchased by Alberta Investment Management Corp

Key Points

• Alberta Investment Management Corp acquired a new stake in Builders FirstSource, purchasing 50,578 shares valued at approximately $6.32 million in the first quarter.
• Builders FirstSource's stock price increased by 2.4%, opening at $130.18, with a market cap of $14.39 billion, and a P/E ratio of 19.75.
• The company announced a $500 million stock buyback plan, indicating that its board believes the shares are undervalued.

Alberta Investment Management Corp acquired a new position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 50,578 shares of the company's stock, valued at approximately $6,319,000.

Several other hedge funds have also modified their holdings of the company. Cambridge Investment Research Advisors Inc. grew its holdings in Builders FirstSource by 18.5% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 20,010 shares of the company's stock valued at $2,500,000 after purchasing an additional 3,131 shares during the last quarter. Stephens Inc. AR grew its stake in shares of Builders FirstSource by 42.5% during the first quarter. Stephens Inc. AR now owns 2,942 shares of the company's stock valued at $368,000 after buying an additional 877 shares during the last quarter. Oppenheimer Asset Management Inc. raised its holdings in shares of Builders FirstSource by 41.4% in the first quarter. Oppenheimer Asset Management Inc. now owns 7,566 shares of the company's stock worth $945,000 after buying an additional 2,216 shares during the period. Altus Wealth Group LLC lifted its holdings in Builders FirstSource by 11.2% during the 1st quarter. Altus Wealth Group LLC now owns 45,021 shares of the company's stock valued at $5,625,000 after buying an additional 4,549 shares in the last quarter. Finally, Sowell Financial Services LLC purchased a new position in shares of Builders FirstSource during the first quarter worth approximately $1,012,000. 95.53% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have commented on BLDR. Robert W. Baird downgraded Builders FirstSource from an "outperform" rating to a "neutral" rating and reduced their price objective for the stock from $145.00 to $130.00 in a report on Friday. UBS Group cut their price target on Builders FirstSource from $180.00 to $163.00 and set a "buy" rating on the stock in a report on Friday, May 2nd. DA Davidson dropped their price objective on Builders FirstSource from $135.00 to $125.00 and set a "neutral" rating on the stock in a research report on Monday. 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 report on Monday, April 14th. Finally, Stifel Nicolaus lifted their price objective on shares of Builders FirstSource from $118.00 to $128.00 and gave the stock a "hold" rating in a research report on Friday. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and twelve have assigned a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $156.16.

Insider Activity at Builders FirstSource

In other news, Director Paul S. Levy acquired 283,517 shares of the firm's stock in a transaction on Thursday, May 8th. The stock was acquired at an average price of $111.21 per share, for a total transaction of $31,529,925.57. Following the completion of the transaction, the director owned 1,672,687 shares in the company, valued at approximately $186,019,521.27. The trade was a 20.41% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Dirkson R. Charles acquired 5,000 shares of the firm's stock in a transaction on Tuesday, May 27th. The stock was purchased at an average price of $109.67 per share, with a total value of $548,350.00. Following the transaction, the director owned 5,000 shares of the company's stock, valued at approximately $548,350. This trade represents a ∞ increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders have bought 505,000 shares of company stock valued at $56,032,120. Insiders own 1.80% of the company's stock.

Builders FirstSource Stock Performance

BLDR traded down $1.94 on Monday, reaching $128.24. 2,662,584 shares of the stock were exchanged, compared to its average volume of 2,178,993. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.79 and a quick ratio of 1.08. The company's 50-day moving average price is $120.51 and its 200 day moving average price is $128.65. Builders FirstSource, Inc. has a fifty-two week low of $102.60 and a fifty-two week high of $203.14. The firm has a market capitalization of $14.18 billion, a PE ratio of 19.46, a PEG ratio of 11.90 and a beta of 1.68.

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

Builders FirstSource declared that its board has authorized a share repurchase program on Thursday, May 1st that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to reacquire up to 3.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's management believes its stock is undervalued.

About Builders FirstSource

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.