Heartland Advisors Inc. Takes Position in Builders FirstSource, Inc. $BLDR

Key Points

• Heartland Advisors initiated a position in Builders FirstSource by purchasing 51,134 shares worth approximately $4.6 million. 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.
• The company authorized a $500 million share-repurchase program, while analysts maintain a consensus “Hold” rating and an average price target of $90.35.

Heartland Advisors Inc. bought a new position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 51,134 shares of the company's stock, valued at approximately $4,575,000.

Several other hedge funds and other institutional investors have also modified their holdings of BLDR. BlackRock Inc. bought a new stake in Builders FirstSource in the second quarter valued at $700,934,000. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Builders FirstSource by 99,084.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company's stock valued at $230,634,000 after acquiring an additional 2,239,301 shares during the period. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in shares of Builders FirstSource in the 2nd quarter valued at $134,908,000. Norges Bank acquired a new stake in shares of Builders FirstSource in the 4th quarter valued at $109,269,000. Finally, Boston Partners grew its holdings in shares of Builders FirstSource by 73.0% in the 3rd quarter. Boston Partners now owns 1,852,292 shares of the company's stock worth $224,627,000 after purchasing an additional 781,506 shares during the last quarter. Institutional investors own 95.53% of the company's stock.

Builders FirstSource Price Performance

Shares of BLDR stock opened at $70.02 on Friday. Builders FirstSource, Inc. has a 1 year low of $65.10 and a 1 year high of $151.03. The firm's 50 day moving average is $75.97 and its 200-day moving average is $84.59. The firm has a market capitalization of $7.53 billion, a price-to-earnings ratio of 76.95, a PEG ratio of 2.28 and a beta of 1.44. The company has a current ratio of 1.79, a quick ratio of 1.09 and a debt-to-equity ratio of 1.14.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its quarterly earnings results 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 net margin of 0.71% and a return on equity of 11.73%. The company had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.91 billion. During the same period in the prior year, the business earned $2.38 EPS. The business's revenue for the quarter was down 8.8% on a year-over-year basis. Sell-side analysts forecast that Builders FirstSource, Inc. will post 3.15 EPS for the current fiscal year.

Builders FirstSource announced that its board has authorized a share repurchase program on Thursday, April 30th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on BLDR shares. BMO Capital Markets reissued a "market perform" rating and set a $80.00 price target on shares of Builders FirstSource in a report on Thursday, August 6th. Wells Fargo & Company decreased 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 research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $66.00 price objective on shares of Builders FirstSource in a report on Friday, July 31st. Benchmark reduced their target price on Builders FirstSource from $105.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday, July 23rd. Finally, Barclays decreased their price target on Builders FirstSource from $93.00 to $81.00 and set an "overweight" rating on the stock in a research report on Friday, July 31st. Nine research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $90.35.

Builders FirstSource 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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