Korea Investment CORP Cuts Stock Position in Builders FirstSource, Inc. $BLDR

Key Points

• Korea Investment CORP has reduced its stake in Builders FirstSource, Inc. (NYSE:BLDR) by 23.5%, selling 24,899 shares, and now holds 81,170 shares valued at approximately $10.14 million.
• Builders FirstSource reported quarterly earnings of $2.38 EPS, surpassing estimates, but noted a 5.0% revenue decline year-over-year, with total revenue of $4.23 billion.
• The company has initiated a $500 million share repurchase plan, potentially indicating that its board believes the stock is undervalued.

Korea Investment CORP trimmed its position in shares of Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 23.5% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 81,170 shares of the company's stock after selling 24,899 shares during the quarter. Korea Investment CORP owned approximately 0.07% of Builders FirstSource worth $10,141,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Voya Investment Management LLC increased its holdings in Builders FirstSource by 174.2% in the 4th quarter. Voya Investment Management LLC now owns 1,416,280 shares of the company's stock worth $202,374,000 after acquiring an additional 899,841 shares in the last quarter. Kovitz Investment Group Partners LLC increased its holdings in Builders FirstSource by 957.1% in the 1st quarter. Kovitz Investment Group Partners LLC now owns 528,984 shares of the company's stock worth $66,091,000 after acquiring an additional 478,942 shares in the last quarter. Diamond Hill Capital Management Inc. increased its holdings in Builders FirstSource by 16.8% in the 1st quarter. Diamond Hill Capital Management Inc. now owns 2,270,362 shares of the company's stock worth $283,659,000 after acquiring an additional 326,923 shares in the last quarter. Coliseum Capital Management LLC purchased a new stake in Builders FirstSource in the 4th quarter worth $45,334,000. Finally, Nuveen LLC purchased a new stake in Builders FirstSource in the 1st quarter worth $36,339,000. 95.53% of the stock is owned by hedge funds and other institutional investors.

Builders FirstSource Trading Down 0.6%

NYSE BLDR traded down $0.89 during trading hours on Wednesday, reaching $141.78. The company had a trading volume of 1,696,685 shares, compared to its average volume of 2,446,495. The stock has a 50-day moving average of $129.70 and a 200 day moving average of $125.53. Builders FirstSource, Inc. has a 1-year low of $102.60 and a 1-year high of $203.14. The company has a current ratio of 1.79, a quick ratio of 1.08 and a debt-to-equity ratio of 1.12. The stock has a market capitalization of $15.67 billion, a P/E ratio of 21.52, a price-to-earnings-growth ratio of 15.11 and a beta of 1.68.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $2.38 EPS for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. Builders FirstSource had a net margin of 4.74% and a return on equity of 24.61%. The company had revenue of $4.23 billion for the quarter, compared to analysts' expectations of $4.29 billion. During the same quarter in the prior year, the company posted $3.50 earnings per share. Builders FirstSource's revenue for the quarter was down 5.0% compared to the same quarter last year. Builders FirstSource has set its FY 2025 guidance at EPS. As a group, research analysts anticipate that Builders FirstSource, Inc. will post 11.59 earnings per share for the current fiscal year.

Builders FirstSource announced that its Board of Directors has initiated a share buyback program on Thursday, May 1st that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 3.9% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

Several brokerages recently commented on BLDR. Raymond James Financial reissued an "outperform" rating and issued a $140.00 price target (down previously from $170.00) on shares of Builders FirstSource in a report on Friday, May 2nd. Oppenheimer set a $155.00 target price on shares of Builders FirstSource and gave the stock an "outperform" rating in a research note on Thursday, July 10th. Baird R W cut shares of Builders FirstSource from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 1st. Robert W. Baird cut shares of Builders FirstSource from an "outperform" rating to a "neutral" rating and lowered their target price for the stock from $145.00 to $130.00 in a research note on Friday, August 1st. Finally, Stephens lowered 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 note on Friday, May 2nd. Eleven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $154.44.

Builders FirstSource Company 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.