Gabelli Funds LLC Reduces Position in Builders FirstSource, Inc. $BLDR

Key Points

• Gabelli Funds LLC sharply reduced its stake in Builders FirstSource by 89.3% in the fourth quarter, selling 20,000 shares and leaving it with 2,400 shares worth about $247,000.
• Insider buying stood out as Director Paul S. Levy bought 50,000 shares at $87.73 each, increasing his direct holdings by 2.98% and bringing his stake to more than 1.7 million shares.
• Builders FirstSource reported mixed quarterly results, missing EPS estimates with $0.27 per share even as revenue of $3.29 billion topped expectations; the company also announced a $500 million stock repurchase program.

Gabelli Funds LLC lessened its position in shares of Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 89.3% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 2,400 shares of the company's stock after selling 20,000 shares during the quarter. Gabelli Funds LLC's holdings in Builders FirstSource were worth $247,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd raised its position in Builders FirstSource by 167.1% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock valued at $26,000 after purchasing an additional 132 shares during the last quarter. Cromwell Holdings LLC raised its position in Builders FirstSource by 1,323.5% in the 4th quarter. Cromwell Holdings LLC now owns 242 shares of the company's stock valued at $25,000 after purchasing an additional 225 shares during the last quarter. TD Waterhouse Canada Inc. purchased a new stake in Builders FirstSource in the 3rd quarter valued at $34,000. CYBER HORNET ETFs LLC purchased a new stake in Builders FirstSource in the 2nd quarter valued at $38,000. Finally, MUFG Securities EMEA plc purchased a new stake in Builders FirstSource in the 2nd quarter valued at $38,000. Hedge funds and other institutional investors own 95.53% of the company's stock.

Insider Buying and Selling at Builders FirstSource

In related news, Director Paul S. Levy purchased 50,000 shares of the stock in a transaction dated Friday, March 13th. The shares were acquired at an average cost of $87.73 per share, with a total value of $4,386,500.00. Following the purchase, the director directly owned 1,727,191 shares in the company, valued at $151,526,466.43. This trade represents a 2.98% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. 2.70% of the stock is currently owned by company insiders.

Builders FirstSource Stock Performance

NYSE:BLDR opened at $74.12 on Monday. 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 stock has a market cap of $7.97 billion, a PE ratio of 28.40, a price-to-earnings-growth ratio of 1.78 and a beta of 1.49. The firm's fifty day simple moving average is $81.85 and its 200-day simple moving average is $100.14.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.27 earnings per share for the quarter, missing analysts' consensus estimates of $0.39 by ($0.12). Builders FirstSource had a return on equity of 14.89% and a net margin of 1.97%.The company had revenue of $3.29 billion for the quarter, compared to analyst estimates of $3.17 billion. During the same period last year, the company earned $1.51 earnings per share. The business's revenue for the quarter was down 10.1% compared to the same quarter last year. Analysts expect that Builders FirstSource, Inc. will post 4.26 earnings per share for the current fiscal year.

Builders FirstSource announced that its board has approved a stock repurchase program on Thursday, April 30th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 5.4% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several analysts recently commented on BLDR shares. Deutsche Bank Aktiengesellschaft reduced their price target on shares of Builders FirstSource from $102.00 to $81.00 and set a "hold" rating for the company in a research report on Monday, May 4th. Royal Bank Of Canada dropped their price objective on shares of Builders FirstSource from $110.00 to $107.00 and set an "outperform" rating on the stock in a research note on Friday, May 1st. Oppenheimer set a $121.00 price objective on shares of Builders FirstSource in a research note on Friday, May 1st. Stifel Nicolaus dropped their price objective on shares of Builders FirstSource from $115.00 to $93.00 and set a "hold" rating on the stock in a research note on Monday, March 16th. Finally, Zacks Research cut shares of Builders FirstSource from a "hold" rating to a "strong sell" rating in a research note on Friday, May 1st. Nine equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, Builders FirstSource has an average rating of "Hold" and an average target price 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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