KLCM Advisors Inc. Raises Position in Builders FirstSource, Inc. (NYSE:BLDR)

Key Points

• KLCM Advisors Inc. increased its position in Builders FirstSource, Inc. by 62.4%, now holding 99,763 shares valued at $12.46 million.
• Builders FirstSource's board has authorized a $500 million share buyback, indicating confidence in the stock's value.
• The company has reported EPS of $2.38 for the last quarter, surpassing analyst estimates, while revenue also saw a decrease of 5.0% year-over-year.

KLCM Advisors Inc. raised its stake in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 62.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 99,763 shares of the company's stock after purchasing an additional 38,346 shares during the quarter. Builders FirstSource accounts for 1.5% of KLCM Advisors Inc.'s investment portfolio, making the stock its 24th biggest holding. KLCM Advisors Inc. owned about 0.09% of Builders FirstSource worth $12,464,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. IMA Advisory Services Inc. purchased a new stake in shares of Builders FirstSource in the first quarter valued at approximately $31,000. Sentry Investment Management LLC purchased a new stake in shares of Builders FirstSource in the first quarter valued at approximately $40,000. CX Institutional purchased a new stake in shares of Builders FirstSource in the first quarter valued at approximately $45,000. Mather Group LLC. raised its holdings in Builders FirstSource by 19.7% during the first quarter. Mather Group LLC. now owns 595 shares of the company's stock worth $74,000 after purchasing an additional 98 shares during the last quarter. Finally, New Age Alpha Advisors LLC raised its holdings in Builders FirstSource by 22.8% during the first quarter. New Age Alpha Advisors LLC now owns 640 shares of the company's stock worth $80,000 after purchasing an additional 119 shares during the last quarter. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Builders FirstSource

In other news, Director Dirkson R. Charles purchased 5,000 shares of the stock in a transaction on Tuesday, May 27th. The stock was purchased at an average price of $109.67 per share, with a total value of $548,350.00. Following the completion of the transaction, the director owned 5,000 shares in the company, valued at approximately $548,350. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 2.00% of the company's stock.

Builders FirstSource Trading Down 0.8%

Builders FirstSource stock traded down $1.13 during trading on Friday, hitting $137.02. The company's stock had a trading volume of 1,351,036 shares, compared to its average volume of 2,289,163. The stock has a market capitalization of $15.15 billion, a price-to-earnings ratio of 20.79, a P/E/G ratio of 14.50 and a beta of 1.68. The stock's fifty day moving average is $125.41 and its 200 day moving average is $126.61. Builders FirstSource, Inc. has a 1-year low of $102.60 and a 1-year high of $203.14. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.08 and a current ratio of 1.79.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $2.38 EPS for the quarter, beating the consensus estimate of $2.35 by $0.03. The firm had revenue of $4.23 billion during the quarter, compared to analyst estimates of $4.29 billion. Builders FirstSource had a return on equity of 24.61% and a net margin of 4.74%. The business's quarterly revenue was down 5.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.50 earnings per share. As a group, equities research analysts predict that Builders FirstSource, Inc. will post 11.59 EPS for the current year.

Builders FirstSource announced that its board has initiated a share buyback plan on Thursday, May 1st that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to reacquire up to 3.9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

BLDR has been the subject of several research reports. UBS Group reduced their price objective on Builders FirstSource from $180.00 to $163.00 and set a "buy" rating for the company in a report on Friday, May 2nd. BMO Capital Markets reduced their price objective on Builders FirstSource from $146.00 to $135.00 and set a "market perform" rating for the company in a report on Monday, May 5th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $134.00 price objective on shares of Builders FirstSource in a report on Friday, August 1st. Stifel Nicolaus lifted their price objective on Builders FirstSource from $118.00 to $128.00 and gave the stock a "hold" rating in a report on Friday, August 1st. Finally, Wall Street Zen cut Builders FirstSource from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $154.44.

About Builders FirstSource

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.