Kovitz Investment Group Partners LLC Buys 478,942 Shares of Builders FirstSource, Inc. (NYSE:BLDR)

Key Points

• Kovitz Investment Group Partners LLC increased its stake in Builders FirstSource, Inc. by 957.1% in the first quarter, acquiring an additional 478,942 shares and owning a total of 528,984 shares valued at approximately $66.1 million.
• Several analysts have adjusted their price targets for Builders FirstSource, with Stephens reducing it from $145 to $140, while Oppenheimer set a new price target of $155 and maintains an "outperform" rating.
• Builders FirstSource has initiated a $500 million share buyback plan, which typically suggests that the management believes the stock may be undervalued.

Kovitz Investment Group Partners LLC boosted its stake in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 957.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 528,984 shares of the company's stock after acquiring an additional 478,942 shares during the period. Kovitz Investment Group Partners LLC owned 0.48% of Builders FirstSource worth $66,091,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the stock. IMA Advisory Services Inc. purchased a new position in Builders FirstSource during the first quarter valued at $31,000. Sentry Investment Management LLC purchased a new position in Builders FirstSource during the first quarter valued at $40,000. CX Institutional purchased a new position in Builders FirstSource during the first quarter valued at $45,000. Mather Group LLC. lifted its position in Builders FirstSource by 19.7% during the first quarter. Mather Group LLC. now owns 595 shares of the company's stock valued at $74,000 after buying an additional 98 shares during the period. Finally, New Age Alpha Advisors LLC lifted its position in Builders FirstSource by 22.8% during the first quarter. New Age Alpha Advisors LLC now owns 640 shares of the company's stock valued at $80,000 after buying an additional 119 shares during the period. Institutional investors own 95.53% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have commented on BLDR. Stephens lowered their price objective on Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating for the company in a research report on Friday, May 2nd. Oppenheimer set a $155.00 price objective on Builders FirstSource and gave the company an "outperform" rating in a research report on Thursday, July 10th. Raymond James Financial reissued an "outperform" rating and set a $140.00 price objective (down previously from $170.00) on shares of Builders FirstSource in a research report on Friday, May 2nd. DA Davidson lowered their price objective on Builders FirstSource from $135.00 to $125.00 and set a "neutral" rating for the company in a research report on Monday, August 4th. Finally, Baird R W lowered Builders FirstSource from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 1st. Two analysts have rated the stock with a sell rating, eight have given a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $154.44.

Builders FirstSource Trading Up 5.1%

Builders FirstSource stock opened at $144.41 on Thursday. The business has a 50-day simple moving average of $124.40 and a two-hundred day simple moving average of $127.37. The company has a market cap of $15.96 billion, a P/E ratio of 21.91, a P/E/G ratio of 14.56 and a beta of 1.68. Builders FirstSource, Inc. has a 52-week low of $102.60 and a 52-week 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.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $2.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. The business had revenue of $4.23 billion during the quarter, compared to the consensus estimate 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 previous year, the company posted $3.50 EPS. Analysts predict that Builders FirstSource, Inc. will post 11.59 EPS for the current year.

Builders FirstSource declared that its Board of Directors has initiated a share buyback plan on Thursday, May 1st that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to purchase up to 3.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Activity

In related news, Director Dirkson R. Charles acquired 5,000 shares of the business's stock in a transaction that occurred on Tuesday, May 27th. The stock was bought at an average cost of $109.67 per share, for a total transaction of $548,350.00. Following the purchase, the director owned 5,000 shares in the company, valued at $548,350. The trade was a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 2.00% of the company's stock.

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.

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