Mediolanum International Funds Ltd Cuts Stock Holdings in Builders FirstSource, Inc. (NYSE:BLDR)

Key Points

• Mediolanum International Funds Ltd has reduced its holdings in Builders FirstSource by 30.1%, now owning 52,716 shares valued at $6.56 million after selling off a significant portion of its stock.
• Builders FirstSource recently reported earnings exceeding analyst expectations with an EPS of $1.51, despite a 6.0% decline in quarterly revenue year-over-year.
• The company has approved a stock repurchase program of $500 million, indicating confidence from the board in the stock's current valuation.

Mediolanum International Funds Ltd cut its stake in shares of Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 30.1% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 52,716 shares of the company's stock after selling 22,718 shares during the period. Mediolanum International Funds Ltd's holdings in Builders FirstSource were worth $6,564,000 as of its most recent SEC filing.

Several other institutional investors also recently modified their holdings of the stock. Norges Bank acquired a new stake in Builders FirstSource in the fourth quarter valued at $199,890,000. Voya Investment Management LLC increased its holdings in Builders FirstSource by 174.2% in the fourth quarter. Voya Investment Management LLC now owns 1,416,280 shares of the company's stock valued at $202,374,000 after purchasing an additional 899,841 shares during the period. FMR LLC increased its holdings in Builders FirstSource by 7.3% in the fourth quarter. FMR LLC now owns 10,898,366 shares of the company's stock valued at $1,557,703,000 after purchasing an additional 740,214 shares during the period. Diamond Hill Capital Management Inc. grew its holdings in Builders FirstSource by 16.8% during 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 during the period. Finally, Coliseum Capital Management LLC acquired a new stake in Builders FirstSource during the 4th quarter worth about $45,334,000. 95.53% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Builders FirstSource

In related news, Director Dirkson R. Charles purchased 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The stock was bought at an average cost of $109.67 per share, with a total value of $548,350.00. Following the completion of the purchase, the director directly owned 5,000 shares in the company, valued at approximately $548,350. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Paul S. Levy purchased 283,517 shares of the firm's stock in a transaction that occurred on Thursday, May 8th. The stock was bought at an average cost of $111.21 per share, with a total value of $31,529,925.57. Following the completion of the purchase, the director owned 1,672,687 shares of the company's stock, valued at $186,019,521.27. This represents a 20.41% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last quarter, insiders have bought 505,000 shares of company stock valued at $56,032,120. 2.00% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on BLDR. 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. BMO Capital Markets lowered their price objective on Builders FirstSource from $146.00 to $135.00 and set a "market perform" rating for the company in a research note on Monday, May 5th. Barclays dropped their target price on shares of Builders FirstSource from $151.00 to $137.00 and set an "overweight" rating on the stock in a research report on Friday, May 2nd. Oppenheimer set a $155.00 price target on shares of Builders FirstSource and gave the stock an "outperform" rating in a report on Thursday, July 10th. Finally, Robert W. Baird set a $130.00 price target on shares of Builders FirstSource in a report on Friday, May 2nd. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $159.42.

Builders FirstSource Price Performance

NYSE:BLDR traded down $1.22 during midday trading on Thursday, hitting $124.89. The company had a trading volume of 2,236,902 shares, compared to its average volume of 1,925,735. The stock's fifty day moving average price is $119.36 and its 200-day moving average price is $129.41. The company has a quick ratio of 1.07, a current ratio of 1.82 and a debt-to-equity ratio of 1.02. Builders FirstSource, Inc. has a 52-week low of $102.60 and a 52-week high of $203.14. The company has a market capitalization of $13.80 billion, a PE ratio of 15.94, a P/E/G ratio of 12.20 and a beta of 1.69.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.37 by $0.01. Builders FirstSource had a net margin of 5.66% and a return on equity of 28.02%. The company's revenue for the quarter was down 5.0% on a year-over-year basis. During the same quarter last year, the business earned $3.50 earnings per share. As a group, research analysts expect that Builders FirstSource, Inc. will post 11.59 earnings per share for the current year.

Builders FirstSource declared that its board has initiated a share buyback program on Thursday, May 1st that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 3.9% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its shares are undervalued.

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.