Diamond Hill Capital Management LLC Investment Advisor Invests $134.91 Million in Builders FirstSource, Inc. $BLDR

Key Points

• Diamond Hill Capital Management acquired 1.51 million Builders FirstSource shares worth approximately $134.9 million, representing about 1.4% of BLDR and 1.1% of its portfolio. Institutional investors collectively own 95.53% of the company.
• Builders FirstSource reported weaker quarterly results, with EPS of $1.17 versus the $1.25 consensus estimate and revenue of $3.86 billion, down 8.8% year over year. Shares opened at $72.52, near the lower end of their 52-week range.
• Analysts have reduced their price targets, resulting in a consensus “Hold” rating and an average target of $90.35. The company also authorized a $500 million share-repurchase program, covering up to 5.4% of outstanding shares.

Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 1,507,684 shares of the company's stock, valued at approximately $134,908,000. Builders FirstSource makes up about 1.1% of Diamond Hill Capital Management LLC Investment Advisor's portfolio, making the stock its 29th largest holding. Diamond Hill Capital Management LLC Investment Advisor owned approximately 1.40% of Builders FirstSource at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd increased its holdings in Builders FirstSource by 167.1% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock worth $26,000 after purchasing an additional 132 shares during the period. Sunbelt Securities Inc. raised its position in Builders FirstSource by 508.5% in the 1st quarter. Sunbelt Securities Inc. now owns 359 shares of the company's stock valued at $30,000 after purchasing an additional 300 shares in the last quarter. Root Financial Partners LLC raised its position in Builders FirstSource by 43.6% in the 1st quarter. Root Financial Partners LLC now owns 372 shares of the company's stock valued at $31,000 after purchasing an additional 113 shares in the last quarter. Transamerica Financial Advisors LLC boosted its stake in shares of Builders FirstSource by 90.2% in the 4th quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock valued at $38,000 after buying an additional 175 shares during the period. Finally, CYBER HORNET ETFs LLC purchased a new position in shares of Builders FirstSource in the 2nd quarter valued at about $38,000. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

Builders FirstSource Stock Performance

Shares of BLDR opened at $72.52 on Monday. The company has a market capitalization of $7.80 billion, a price-to-earnings ratio of 79.69, a price-to-earnings-growth ratio of 2.35 and a beta of 1.44. Builders FirstSource, Inc. has a 52-week low of $65.10 and a 52-week high of $151.03. The company has a quick ratio of 1.09, a current ratio of 1.79 and a debt-to-equity ratio of 1.14. The stock has a 50 day moving average price of $76.59 and a 200 day moving average price of $85.98.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.17 earnings per share for the quarter, missing analysts' consensus estimates of $1.25 by ($0.08). Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%.The company had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.91 billion. During the same period in the previous year, the business posted $2.38 EPS. The firm's revenue for the quarter was down 8.8% compared to the same quarter last year. Research analysts predict that Builders FirstSource, Inc. will post 3.15 EPS for the current fiscal year.

Builders FirstSource declared that its board has initiated a stock repurchase plan on Thursday, April 30th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to reacquire 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.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on BLDR shares. Raymond James Financial cut their target price on shares of Builders FirstSource from $140.00 to $100.00 in a research note on Friday, May 1st. Robert W. Baird set a $75.00 price target on shares of Builders FirstSource in a research note on Friday, July 31st. Stephens lowered their price target on shares of Builders FirstSource from $125.00 to $100.00 and set an "equal weight" rating for the company in a report on Monday, April 27th. Truist Financial dropped their price objective on shares of Builders FirstSource from $115.00 to $90.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. Finally, Wells Fargo & Company reduced their price objective on shares of Builders FirstSource from $85.00 to $65.00 and set an "equal weight" rating on the stock in a report on Friday, July 31st. Nine analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $90.35.

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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