Giverny Capital Inc. Invests $10.30 Million in Builders FirstSource, Inc. $BLDR

Key Points

• Giverny Capital Inc. has invested approximately $10.30 million in Builders FirstSource, acquiring 82,445 shares, representing 0.07% of the company's stock.
• Recent analyst reports show a general trend of decreased price targets for Builders FirstSource, with Barclays, Stephens, and UBS lowering their target prices amidst varied ratings including "overweight" and "buy."
• Builders FirstSource has approved a stock repurchase plan for up to $500 million, indicating management's belief that the stock is undervalued, with insiders also showing confidence by purchasing shares.

Giverny Capital Inc. bought a new stake in 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 and Exchange Commission (SEC). The fund bought 82,445 shares of the company's stock, valued at approximately $10,301,000. Giverny Capital Inc. owned 0.07% of Builders FirstSource as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in BLDR. Townsquare Capital LLC lifted its position in shares of Builders FirstSource by 15.0% during the 4th quarter. Townsquare Capital LLC now owns 4,255 shares of the company's stock worth $608,000 after buying an additional 554 shares during the period. United Capital Financial Advisors LLC raised its stake in shares of Builders FirstSource by 2.8% in the fourth quarter. United Capital Financial Advisors LLC now owns 4,274 shares of the company's stock valued at $611,000 after acquiring an additional 115 shares during the last quarter. Canada Pension Plan Investment Board grew its position in Builders FirstSource by 8.4% during the 4th quarter. Canada Pension Plan Investment Board now owns 101,393 shares of the company's stock worth $14,492,000 after acquiring an additional 7,855 shares during the last quarter. First Trust Advisors LP grew its position in Builders FirstSource by 8.6% during the 4th quarter. First Trust Advisors LP now owns 193,483 shares of the company's stock worth $27,654,000 after acquiring an additional 15,342 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in Builders FirstSource by 3.6% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,237,996 shares of the company's stock valued at $319,898,000 after purchasing an additional 77,666 shares during the last quarter. Institutional investors and hedge funds own 95.53% of the company's stock.

Analysts Set New Price Targets

BLDR has been the topic of several research analyst reports. Barclays decreased their target price on Builders FirstSource from $137.00 to $135.00 and set an "overweight" rating on the stock in a report on Friday, August 1st. Stephens reduced their target price on shares of Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating on the stock in a research report on Friday, May 2nd. UBS Group lowered their price target on shares of Builders FirstSource from $180.00 to $163.00 and set a "buy" rating for the company in a report on Friday, May 2nd. Robert W. Baird downgraded Builders FirstSource from an "outperform" rating to a "neutral" rating and reduced their price objective for the stock from $145.00 to $130.00 in a report on Friday, August 1st. Finally, Raymond James Financial reissued an "outperform" rating and issued a $140.00 target price (down from $170.00) on shares of Builders FirstSource in a research note on Friday, May 2nd. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $154.44.

Builders FirstSource Price Performance

Shares of BLDR stock opened at $137.02 on Monday. The firm has a market capitalization of $15.15 billion, a price-to-earnings ratio of 20.79, a price-to-earnings-growth ratio of 14.50 and a beta of 1.68. Builders FirstSource, Inc. has a 12-month low of $102.60 and a 12-month high of $203.14. The company has a quick ratio of 1.08, a current ratio of 1.79 and a debt-to-equity ratio of 1.12. The firm has a fifty day moving average of $125.41 and a 200-day moving average of $126.29.

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, topping the consensus estimate of $2.35 by $0.03. Builders FirstSource had a return on equity of 24.61% and a net margin of 4.74%. The company had revenue of $4.23 billion during the quarter, compared to the consensus estimate of $4.29 billion. During the same period in the prior year, the company earned $3.50 earnings per share. The company's revenue for the quarter was down 5.0% compared to the same quarter last year. On average, equities research analysts forecast that Builders FirstSource, Inc. will post 11.59 earnings per share for the current year.

Builders FirstSource announced that its board has approved a stock repurchase plan on Thursday, May 1st that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 3.9% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Dirkson R. Charles purchased 5,000 shares of Builders FirstSource stock in a transaction dated Tuesday, May 27th. The stock was bought at an average price of $109.67 per share, for a total transaction of $548,350.00. Following the completion of the acquisition, the director directly owned 5,000 shares of the company's stock, valued at $548,350. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.80% of the company's stock.

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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