Paradigm Capital Management Inc. NY Acquires New Position in Builders FirstSource, Inc. $BLDR

Key Points

• Paradigm Capital Management acquired 131,250 Builders FirstSource shares worth approximately $11.7 million, representing about 0.12% of the company. Institutional investors collectively own 95.53% of BLDR.
• Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $90.35. Several firms recently cut their targets, although RBC and Oppenheimer maintained “outperform” ratings.
• Builders FirstSource reported quarterly EPS of $1.17, below the $1.25 consensus estimate, while revenue fell 8.8% year over year to $3.86 billion. The company also has a $500 million share-repurchase authorization covering up to 5.4% of outstanding shares.

Paradigm Capital Management Inc. NY bought a new position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 131,250 shares of the company's stock, valued at approximately $11,744,000. Paradigm Capital Management Inc. NY owned about 0.12% of Builders FirstSource at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of Builders FirstSource during the second quarter worth approximately $700,934,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Builders FirstSource by 99,084.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company's stock valued at $230,634,000 after purchasing an additional 2,239,301 shares in the last quarter. Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in Builders FirstSource during the second quarter valued at about $134,908,000. Norges Bank bought a new stake in shares of Builders FirstSource in the 4th quarter valued at about $109,269,000. Finally, Boston Partners lifted its stake in shares of Builders FirstSource by 73.0% in the 3rd quarter. Boston Partners now owns 1,852,292 shares of the company's stock valued at $224,627,000 after acquiring an additional 781,506 shares during the last quarter. Hedge funds and other institutional investors own 95.53% of the company's stock.

Wall Street Analyst Weigh In

BLDR has been the topic of several recent research reports. Royal Bank Of Canada reduced their price target on Builders FirstSource from $107.00 to $88.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Oppenheimer lowered their price objective on Builders FirstSource from $110.00 to $90.00 and set an "outperform" rating for the company in a research report on Friday, July 31st. Citigroup began coverage on Builders FirstSource in a research note on Friday. They set a "market perform" rating for the company. Wells Fargo & Company cut their target price on shares of Builders FirstSource from $85.00 to $65.00 and set an "equal weight" rating on the stock in a report on Friday, July 31st. Finally, BMO Capital Markets reaffirmed a "market perform" rating and issued a $80.00 target price on shares of Builders FirstSource in a research note on Thursday, August 6th. Nine equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $90.35.

Builders FirstSource Price Performance

BLDR opened at $70.37 on Tuesday. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.09 and a current ratio of 1.79. Builders FirstSource, Inc. has a 52-week low of $65.10 and a 52-week high of $151.03. The stock has a market capitalization of $7.57 billion, a PE ratio of 77.33, a price-to-earnings-growth ratio of 2.28 and a beta of 1.44. The stock's 50 day moving average price is $75.82 and its 200-day moving average price is $84.04.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.17 EPS for the quarter, missing analysts' consensus estimates of $1.25 by ($0.08). The business had revenue of $3.86 billion during the quarter, compared to analysts' expectations of $3.91 billion. Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%.The business's revenue was down 8.8% compared to the same quarter last year. During the same period in the previous year, the business earned $2.38 EPS. On average, equities research analysts predict that Builders FirstSource, Inc. will post 3.15 EPS for the current year.

Builders FirstSource announced that its Board of Directors has authorized a share repurchase plan on Thursday, April 30th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback plans are often a sign that the company's management believes its stock is undervalued.

About Builders FirstSource

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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