Builders FirstSource, Inc. (NYSE:BLDR) Shares Sold by Russell Investments Group Ltd.

Key Points

• Russell Investments Group Ltd. has reduced its holdings in Builders FirstSource by 29%, selling 71,533 shares during the first quarter, leaving it with 174,883 shares worth approximately $21.8 million.
• Builders FirstSource recently faced multiple rating adjustments from analysts, with BMO Capital Markets lowering its price target from $146 to $135, while other firms also reviewed their ratings, indicating a cautious outlook on the stock.
• The company authorized a $500 million stock buyback plan in May, reflecting management's belief that their shares are undervalued, amidst a backdrop of institutional ownership exceeding 95% of the stock.

Russell Investments Group Ltd. trimmed its holdings in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 29.0% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 174,883 shares of the company's stock after selling 71,533 shares during the period. Russell Investments Group Ltd. owned 0.16% of Builders FirstSource worth $21,844,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also modified their holdings of the company. IMA Advisory Services Inc. acquired a new stake in shares of Builders FirstSource in the first quarter valued at about $31,000. Sentry Investment Management LLC acquired a new stake in shares of Builders FirstSource in the first quarter valued at about $40,000. CX Institutional acquired a new stake in shares of Builders FirstSource in the first quarter valued at about $45,000. Mather Group LLC. raised its position in shares of Builders FirstSource by 19.7% in the first quarter. Mather Group LLC. now owns 595 shares of the company's stock valued at $74,000 after buying an additional 98 shares during the last quarter. Finally, New Age Alpha Advisors LLC raised its position 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 valued at $80,000 after buying an additional 119 shares during the last quarter. 95.53% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on BLDR shares. Zelman & Associates restated an "underperform" rating on shares of Builders FirstSource in a research report on Friday, July 18th. BMO Capital Markets cut their price objective on shares of 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. Raymond James Financial restated an "outperform" rating and set a $140.00 price objective (down from $170.00) on shares of Builders FirstSource in a research report on Friday, May 2nd. Baird R W cut shares of Builders FirstSource from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 1st. Finally, DA Davidson cut their price objective on shares of Builders FirstSource from $135.00 to $125.00 and set a "neutral" rating for the company in a research report on Monday, August 4th. Two analysts have rated the stock with a sell rating, eight have given a hold rating and eleven have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $154.44.

Insider Activity at Builders FirstSource

In other Builders FirstSource news, Director Dirkson R. Charles acquired 5,000 shares of the stock in a transaction dated Tuesday, May 27th. The stock was acquired at an average price of $109.67 per share, with a total value of $548,350.00. Following the completion of the purchase, the director owned 5,000 shares in the company, valued at $548,350. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 2.00% of the company's stock.

Builders FirstSource Trading Down 0.8%

Shares of BLDR stock opened at $137.02 on Friday. The company has a 50-day moving average of $125.41 and a two-hundred day moving average of $126.90. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.79 and a quick ratio of 1.08. Builders FirstSource, Inc. has a 1-year low of $102.60 and a 1-year high of $203.14. The firm has a market cap of $15.15 billion, a PE ratio of 20.79, a price-to-earnings-growth ratio of 14.63 and a beta of 1.68.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $2.38 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analyst estimates of $4.29 billion. During the same quarter last year, the firm posted $3.50 earnings per share. The business's revenue for the quarter was down 5.0% compared to the same quarter last year. On average, analysts predict that Builders FirstSource, Inc. will post 11.59 EPS for the current year.

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

Builders FirstSource 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.

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