Lodge Hill Capital LLC Trims Holdings in Builders FirstSource, Inc. $BLDR

Key Points

• Lodge Hill Capital LLC reduced its stake in Builders FirstSource by 26.0%, now holding 191,880 shares, making it the 7th biggest holding in its portfolio.
• The company's recent earnings report showed a decrease in revenue of 5.0% year-over-year, with Q2 earnings per share of $2.38, slightly above estimates.
• Builders FirstSource announced a $500 million stock repurchase program, suggesting confidence in the stock's current valuation and future performance.

Lodge Hill Capital LLC lessened its position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 26.0% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 191,880 shares of the company's stock after selling 67,350 shares during the period. Builders FirstSource makes up about 5.7% of Lodge Hill Capital LLC's investment portfolio, making the stock its 7th biggest holding. Lodge Hill Capital LLC owned about 0.17% of Builders FirstSource worth $23,973,000 at the end of the most recent reporting period.

Several other hedge funds also recently bought and sold shares of the company. IMA Advisory Services Inc. acquired a new position in shares of Builders FirstSource in the 1st quarter valued at $31,000. Sentry Investment Management LLC acquired a new position in shares of Builders FirstSource in the 1st quarter valued at approximately $40,000. CX Institutional bought a new stake in Builders FirstSource during the 1st quarter worth approximately $45,000. Mather Group LLC. raised its holdings in Builders FirstSource by 19.7% during the 1st quarter. Mather Group LLC. now owns 595 shares of the company's stock worth $74,000 after buying an additional 98 shares during the period. Finally, Smartleaf Asset Management LLC increased its position in shares of Builders FirstSource by 21.0% during the first quarter. Smartleaf Asset Management LLC now owns 627 shares of the company's stock worth $78,000 after acquiring an additional 109 shares in the last quarter. 95.53% of the stock is currently owned by institutional investors and hedge funds.

Builders FirstSource Trading Down 0.6%

Shares of NYSE:BLDR opened at $141.78 on Thursday. Builders FirstSource, Inc. has a 52-week low of $102.60 and a 52-week 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. The company 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. The company has a 50-day simple moving average of $129.70 and a 200 day simple moving average of $125.53.

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

Builders FirstSource announced that its Board of Directors has approved a stock repurchase program on Thursday, May 1st that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to reacquire up to 3.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Stephens cut their price objective on shares of Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating on the stock in a research report on Friday, May 2nd. Raymond James Financial restated an "outperform" rating and issued a $140.00 price target (down from $170.00) on shares of Builders FirstSource 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 research report on Monday, May 5th. Wedbush dropped their target price on Builders FirstSource from $190.00 to $145.00 and set an "outperform" rating on the stock in a research report on Friday, June 20th. Finally, Barclays cut their target price on Builders FirstSource from $137.00 to $135.00 and set an "overweight" rating on the stock in a research note on Friday, August 1st. 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's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average 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.

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