Diversified Investment Strategies LLC Takes Position in Builders FirstSource, Inc. $BLDR

Key Points

• Diversified Investment Strategies LLC initiated a new position in Builders FirstSource, buying 47,620 shares valued at about $3.92 million. The stake makes BLDR roughly 2.5% of the firm’s portfolio.
• Builders FirstSource reported Q1 EPS of $0.27, missing analyst estimates, while revenue of $3.29 billion topped expectations but was still down 10.1% from a year earlier.
• The company’s board authorized a $500 million stock buyback, and analysts currently have a mixed outlook with an average rating of Hold and a mean price target of $101.88.

Diversified Investment Strategies LLC purchased a new position in shares of Builders FirstSource, Inc. (NYSE:BLDR - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 47,620 shares of the company's stock, valued at approximately $3,921,000. Builders FirstSource comprises approximately 2.5% of Diversified Investment Strategies LLC's holdings, making the stock its 12th biggest position.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. State Street Corp raised its stake in shares of Builders FirstSource by 2.3% during the fourth quarter. State Street Corp now owns 5,108,120 shares of the company's stock worth $525,574,000 after purchasing an additional 115,857 shares during the last quarter. Wellington Management Group LLP grew its position in Builders FirstSource by 2.3% in the 4th quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company's stock valued at $341,265,000 after buying an additional 73,835 shares during the last quarter. Geode Capital Management LLC increased its stake in Builders FirstSource by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 2,817,958 shares of the company's stock valued at $288,789,000 after buying an additional 14,420 shares during the period. Sands Capital Management LLC increased its stake in Builders FirstSource by 13.5% in the 4th quarter. Sands Capital Management LLC now owns 2,757,969 shares of the company's stock valued at $283,767,000 after buying an additional 327,067 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in Builders FirstSource by 37.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,641,809 shares of the company's stock worth $271,816,000 after buying an additional 725,905 shares during the last quarter. 95.53% of the stock is owned by hedge funds and other institutional investors.

Builders FirstSource Trading Up 1.6%

Shares of BLDR stock opened at $75.75 on Friday. The stock has a market cap of $8.15 billion, a P/E ratio of 29.02, a P/E/G ratio of 1.77 and a beta of 1.42. The company has a quick ratio of 1.09, a current ratio of 1.76 and a debt-to-equity ratio of 1.15. Builders FirstSource, Inc. has a fifty-two week low of $65.10 and a fifty-two week high of $151.03. The business has a fifty day simple moving average of $77.52 and a 200-day simple moving average of $93.44.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $0.27 EPS for the quarter, missing analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $3.17 billion. During the same period in the previous year, the company posted $1.51 earnings per share. Builders FirstSource's revenue was down 10.1% on a year-over-year basis. On average, analysts forecast that Builders FirstSource, Inc. will post 4.32 earnings per share for the current fiscal year.

Builders FirstSource declared that its Board of Directors has initiated a stock buyback program on Thursday, April 30th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 5.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on BLDR. Loop Capital lowered their target price on shares of Builders FirstSource from $140.00 to $110.00 in a report on Friday, May 1st. Benchmark reduced their price objective on shares of Builders FirstSource from $138.00 to $105.00 and set a "buy" rating for the company in a research report on Friday, May 1st. Wolfe Research raised Builders FirstSource to a "hold" rating in a report on Thursday, May 14th. Truist Financial dropped their target price on Builders FirstSource from $145.00 to $115.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Finally, BMO Capital Markets cut their target price on Builders FirstSource from $100.00 to $93.00 and set a "market perform" rating for the company in a research note on Monday, May 4th. Eight analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $101.88.

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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