Hsbc Holdings PLC Lowers Stake in Builders FirstSource, Inc. $BLDR

Key Points

• Hsbc Holdings PLC reduced its stake in Builders FirstSource, Inc. by 34.3%, holding now 268,621 shares worth approximately $33.5 million.
• Corporate insiders own 2.00% of Builders FirstSource, with Director Dirkson R. Charles purchasing 5,000 shares at an average price of $109.67.
• Builders FirstSource has initiated a $500 million stock repurchase plan, indicating management's belief that the shares are undervalued.

Hsbc Holdings PLC trimmed its position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 34.3% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 268,621 shares of the company's stock after selling 140,278 shares during the quarter. Hsbc Holdings PLC owned about 0.24% of Builders FirstSource worth $33,475,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. IMA Advisory Services Inc. bought a new stake in shares of Builders FirstSource in the first quarter worth about $31,000. Sentry Investment Management LLC bought a new stake in shares of Builders FirstSource in the first quarter worth about $40,000. CX Institutional bought a new stake in shares of Builders FirstSource in the first quarter worth about $45,000. Mather Group LLC. increased its holdings in shares of Builders FirstSource by 19.7% in the first quarter. Mather Group LLC. now owns 595 shares of the company's stock worth $74,000 after purchasing an additional 98 shares during the last quarter. Finally, New Age Alpha Advisors LLC increased its holdings in shares of Builders FirstSource by 22.8% in the first quarter. New Age Alpha Advisors LLC now owns 640 shares of the company's stock worth $80,000 after purchasing an additional 119 shares during the last quarter. 95.53% of the stock is owned by institutional investors.

Builders FirstSource Trading Down 0.8%

Shares of NYSE BLDR traded down $1.11 during trading hours on Wednesday, reaching $141.56. The stock had a trading volume of 937,701 shares, compared to its average volume of 1,974,135. 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 firm has a market cap of $15.65 billion, a price-to-earnings ratio of 21.46, a P/E/G ratio of 15.03 and a beta of 1.68. The business's fifty day moving average price is $129.00 and its two-hundred day moving average price is $125.41. Builders FirstSource, Inc. has a 52-week low of $102.60 and a 52-week high of $203.14.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced 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. The firm had revenue of $4.23 billion during the quarter, compared to analyst estimates of $4.29 billion. Builders FirstSource had a return on equity of 24.61% and a net margin of 4.74%.Builders FirstSource's quarterly revenue was down 5.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.50 earnings per share. Builders FirstSource has set its FY 2025 guidance at EPS. Analysts expect that Builders FirstSource, Inc. will post 11.59 EPS for the current fiscal year.

Builders FirstSource announced that its Board of Directors has initiated a share repurchase plan on Thursday, May 1st that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to buy up to 3.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. Royal Bank Of Canada cut Builders FirstSource from an "outperform" rating to a "sector perform" rating and reduced their target price for the stock from $132.00 to $129.00 in a report on Friday, August 1st. Wedbush dropped their price target on Builders FirstSource from $190.00 to $145.00 and set an "outperform" rating for the company in a research report on Friday, June 20th. BMO Capital Markets dropped their price target on Builders FirstSource from $146.00 to $135.00 and set a "market perform" rating for the company in a research report on Monday, May 5th. Zelman & Associates reiterated an "underperform" rating on shares of Builders FirstSource in a research report on Friday, July 18th. Finally, Baird R W lowered Builders FirstSource from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 1st. Eleven equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $154.44.

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.