Hsbc Holdings PLC Sells 42,474 Shares of Builders FirstSource, Inc. $BLDR

Key Points

• HSBC Holdings PLC reduced its Builders FirstSource position by 16.3% in the first quarter, selling 42,474 shares and leaving it with 218,856 shares worth about $18.0 million.
• Analysts have turned more cautious on BLDR, with several firms cutting price targets; the stock now carries a consensus Hold rating and an average target price of $101.45.
• Builders FirstSource reported weaker quarterly earnings of $0.27 per share versus expectations of $0.39, though revenue came in above estimates at $3.29 billion. The company also authorized a $500 million share buyback.

Hsbc Holdings PLC trimmed its position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 16.3% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 218,856 shares of the company's stock after selling 42,474 shares during the quarter. Hsbc Holdings PLC owned 0.20% of Builders FirstSource worth $17,986,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Cromwell Holdings LLC grew its holdings in Builders FirstSource by 1,323.5% in the 4th quarter. Cromwell Holdings LLC now owns 242 shares of the company's stock worth $25,000 after acquiring an additional 225 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in shares of Builders FirstSource by 167.1% during the third quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock valued at $26,000 after acquiring an additional 132 shares during the last quarter. Root Financial Partners LLC raised its stake in shares of Builders FirstSource by 43.6% during the first quarter. Root Financial Partners LLC now owns 372 shares of the company's stock valued at $31,000 after acquiring an additional 113 shares during the last quarter. Transamerica Financial Advisors LLC boosted its holdings in shares of Builders FirstSource by 90.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock worth $38,000 after purchasing an additional 175 shares during the period. Finally, CYBER HORNET ETFs LLC purchased a new stake in shares of Builders FirstSource during the second quarter worth about $38,000. 95.53% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on BLDR shares. Benchmark cut their target price on Builders FirstSource from $138.00 to $105.00 and set a "buy" rating on the stock in a research note on Friday, May 1st. Stephens dropped their price objective on Builders FirstSource from $125.00 to $100.00 and set an "equal weight" rating for the company in a report on Monday, April 27th. Weiss Ratings upgraded Builders FirstSource from a "sell (d)" rating to a "sell (d+)" rating in a research report on Thursday, July 2nd. DA Davidson reduced their target price on Builders FirstSource from $111.00 to $84.00 and set a "neutral" rating on the stock in a research note on Friday, May 1st. Finally, Bank of America reduced their target price on Builders FirstSource from $123.00 to $100.00 and set a "neutral" rating on the stock in a research note on Monday, April 20th. Eight research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Builders FirstSource has a consensus rating of "Hold" and an average price target of $101.45.

Builders FirstSource Stock Performance

Shares of BLDR opened at $69.87 on Wednesday. The company has a 50-day simple moving average of $77.14 and a two-hundred day simple moving average of $91.94. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.09. The firm has a market capitalization of $7.52 billion, a PE ratio of 26.77, a price-to-earnings-growth ratio of 1.73 and a beta of 1.42. Builders FirstSource, Inc. has a one year low of $65.10 and a one year high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its 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 firm had revenue of $3.29 billion for the quarter, compared to analysts' expectations of $3.17 billion. During the same quarter last year, the company posted $1.51 EPS. The firm's revenue was down 10.1% on a year-over-year basis. On average, analysts anticipate that Builders FirstSource, Inc. will post 4.29 EPS for the current fiscal year.

Builders FirstSource announced that its Board of Directors has authorized a stock buyback program on Thursday, April 30th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 5.4% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

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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