Bank of New York Mellon Corp Sells 143,330 Shares of Builders FirstSource, Inc. $BLDR

Key Points

• Bank of New York Mellon cut its Builders FirstSource stake by 21.1% in Q1, selling 143,330 shares and leaving it with 537,427 shares worth about $44.2 million.
• Builders FirstSource reported weaker-than-expected quarterly earnings of $0.27 per share versus $0.39 expected, though revenue of $3.29 billion came in above estimates.
• The company also approved a $500 million share buyback, while analysts have recently lowered price targets and the stock currently carries a consensus Hold rating.

Bank of New York Mellon Corp reduced its position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 21.1% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 537,427 shares of the company's stock after selling 143,330 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.49% of Builders FirstSource worth $44,246,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently made changes to their positions in the company. Schwartz Investment Counsel Inc. raised its position in shares of Builders FirstSource by 17.1% in the fourth quarter. Schwartz Investment Counsel Inc. now owns 95,800 shares of the company's stock valued at $9,857,000 after purchasing an additional 14,000 shares during the period. Eagle Global Advisors LLC boosted its holdings in Builders FirstSource by 46.3% in the 4th quarter. Eagle Global Advisors LLC now owns 60,242 shares of the company's stock worth $6,198,000 after buying an additional 19,062 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in Builders FirstSource by 10.3% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 238,867 shares of the company's stock worth $24,993,000 after buying an additional 22,270 shares during the period. Diamond Hill Capital Management Inc. grew its stake in Builders FirstSource by 13.4% in the 4th quarter. Diamond Hill Capital Management Inc. now owns 1,872,708 shares of the company's stock valued at $192,683,000 after buying an additional 221,641 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in Builders FirstSource by 99,084.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company's stock valued at $230,634,000 after acquiring an additional 2,239,301 shares during the period. 95.53% of the stock is currently owned by institutional investors.

Builders FirstSource Trading Up 3.3%

Builders FirstSource stock opened at $72.89 on Friday. The stock has a market cap of $7.84 billion, a P/E ratio of 27.93, a PEG ratio of 1.68 and a beta of 1.42. Builders FirstSource, Inc. has a fifty-two week low of $65.10 and a fifty-two week high of $151.03. The firm's fifty day moving average price is $77.11 and its 200-day moving average price is $91.34. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.09 and a current ratio of 1.76.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.12). Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The business had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.17 billion. During the same period in the prior year, the business posted $1.51 EPS. Builders FirstSource's quarterly revenue was down 10.1% on a year-over-year basis. Equities research analysts forecast that Builders FirstSource, Inc. will post 4.29 earnings per share for the current fiscal year.

Builders FirstSource declared that its Board of Directors has approved a stock buyback program on Thursday, April 30th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

A number of equities analysts have recently commented on BLDR shares. Robert W. Baird cut their price target on Builders FirstSource from $125.00 to $95.00 in a report on Friday, May 1st. Bank of America decreased their price objective on Builders FirstSource from $123.00 to $100.00 and set a "neutral" rating on the stock in a research note on Monday, April 20th. Deutsche Bank Aktiengesellschaft dropped their price objective on Builders FirstSource from $102.00 to $81.00 and set a "hold" rating on the stock in a report on Monday, May 4th. UBS Group cut their target price on Builders FirstSource from $143.00 to $122.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Finally, Benchmark reduced their target price on Builders FirstSource from $105.00 to $100.00 and set a "buy" rating for the company in a report on Thursday. Nine investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Builders FirstSource currently has a consensus rating of "Hold" and an average target price of $100.35.

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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