Northwestern Mutual Wealth Management Co. Buys 2,239,301 Shares of Builders FirstSource, Inc. $BLDR

Key Points

• Northwestern Mutual Wealth Management Co. dramatically increased its Builders FirstSource stake in the fourth quarter, buying 2.24 million additional shares and lifting its holding to about 2.03% of the company, worth roughly $230.6 million.
• Builders FirstSource reported mixed quarterly results, with revenue of $3.29 billion topping estimates but adjusted EPS of $0.27 missing expectations; revenue also fell 10.1% year over year.
• The company’s board approved a $500 million share repurchase program, while analysts remain cautious overall with a consensus rating of “Hold” and an average price target of $101.88.

Northwestern Mutual Wealth Management Co. boosted its stake in shares of Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 99,084.1% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 2,241,561 shares of the company's stock after buying an additional 2,239,301 shares during the quarter. Northwestern Mutual Wealth Management Co. owned approximately 2.03% of Builders FirstSource worth $230,634,000 as of its most recent SEC filing.

Other institutional investors also recently added to or reduced their stakes in the company. Bessemer Group Inc. increased its stake in shares of Builders FirstSource by 8.5% during the 4th quarter. Bessemer Group Inc. now owns 501,019 shares of the company's stock worth $51,550,000 after purchasing an additional 39,085 shares during the last quarter. AustralianSuper Pty Ltd lifted its stake in Builders FirstSource by 5.1% in the fourth quarter. AustralianSuper Pty Ltd now owns 224,514 shares of the company's stock valued at $23,100,000 after purchasing an additional 10,953 shares during the last quarter. Thrivent Financial for Lutherans lifted its stake in Builders FirstSource by 26.7% in the fourth quarter. Thrivent Financial for Lutherans now owns 77,881 shares of the company's stock valued at $8,014,000 after purchasing an additional 16,398 shares during the last quarter. Triton Wealth Management PLLC lifted its stake in Builders FirstSource by 17.3% in the fourth quarter. Triton Wealth Management PLLC now owns 4,018 shares of the company's stock valued at $413,000 after purchasing an additional 592 shares during the last quarter. Finally, Baader Bank Aktiengesellschaft purchased a new position in Builders FirstSource in the fourth quarter valued at approximately $450,000. Institutional investors own 95.53% of the company's stock.

Builders FirstSource Price Performance

BLDR stock opened at $70.24 on Friday. The firm has a 50 day moving average of $84.10 and a 200-day moving average of $101.84. The company has a current ratio of 1.76, a quick ratio of 1.09 and a debt-to-equity ratio of 1.15. Builders FirstSource, Inc. has a 12 month low of $69.86 and a 12 month high of $151.03. The firm has a market capitalization of $7.55 billion, a P/E ratio of 26.91, a price-to-earnings-growth ratio of 1.69 and a beta of 1.49.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.27 EPS for the quarter, missing analysts' consensus estimates of $0.39 by ($0.12). Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The firm had revenue of $3.29 billion during the quarter, compared to the consensus estimate of $3.17 billion. During the same quarter last year, the business posted $1.51 earnings per share. Builders FirstSource's revenue was down 10.1% compared to the same quarter last year. As a group, sell-side analysts predict that Builders FirstSource, Inc. will post 4.26 earnings per share for the current fiscal year.

Builders FirstSource declared that its board has approved a share repurchase plan on Thursday, April 30th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to purchase up to 5.4% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Insider Activity at Builders FirstSource

In other news, Director Paul S. Levy acquired 50,000 shares of the business's stock in a transaction dated Friday, March 13th. The stock was bought at an average cost of $87.73 per share, for a total transaction of $4,386,500.00. Following the completion of the transaction, the director owned 1,727,191 shares of the company's stock, valued at $151,526,466.43. The trade was a 2.98% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 2.70% of the company's stock.

Analysts Set New Price Targets

Several research firms recently commented on BLDR. Weiss Ratings downgraded Builders FirstSource from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 20th. Zacks Research downgraded Builders FirstSource from a "hold" rating to a "strong sell" rating in a research note on Friday, May 1st. Truist Financial dropped their price objective on Builders FirstSource from $145.00 to $115.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Wells Fargo & Company cut their target price on shares of Builders FirstSource from $87.00 to $85.00 and set an "equal weight" rating for the company in a research report on Friday, May 1st. Finally, Barclays reduced their target price on shares of Builders FirstSource from $114.00 to $93.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. Nine research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $101.88.

Builders FirstSource Profile

Builders FirstSource, Inc is a leading supplier of structural and value-added building products and services to professional contractors, homebuilders and remodelers. The company provides a comprehensive range of materials and prefabricated components that support all phases of residential construction, from site development and framing to finishing and installation.

The company's core offerings include lumber and lumber sheet goods, windows and doors, millwork, roofing and siding, and engineered wood products such as roof and floor trusses.

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