Prudential PLC Decreases Holdings in Builders FirstSource, Inc. $BLDR

Key Points

• Prudential PLC reduced its stake in Builders FirstSource, Inc. by 50.4%, now owning 2,519 shares valued at $315,000.
• Several investors, including Cambridge Investment Research and Oppenheimer Asset Management, have increased their positions in Builders FirstSource during the same quarter.
• Builders FirstSource announced a $500 million share buyback program, indicating management's belief that its shares are currently undervalued.

Prudential PLC reduced its stake in shares of Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 50.4% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,519 shares of the company's stock after selling 2,561 shares during the period. Prudential PLC's holdings in Builders FirstSource were worth $315,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of BLDR. Townsquare Capital LLC raised its holdings in Builders FirstSource by 15.0% in the 4th quarter. Townsquare Capital LLC now owns 4,255 shares of the company's stock valued at $608,000 after acquiring an additional 554 shares during the last quarter. Mariner LLC raised its holdings in Builders FirstSource by 7.2% in the 4th quarter. Mariner LLC now owns 57,616 shares of the company's stock valued at $8,235,000 after acquiring an additional 3,875 shares during the last quarter. CreativeOne Wealth LLC raised its holdings in Builders FirstSource by 15.2% in the 4th quarter. CreativeOne Wealth LLC now owns 3,583 shares of the company's stock valued at $512,000 after acquiring an additional 473 shares during the last quarter. Gabelli Funds LLC raised its holdings in Builders FirstSource by 75.0% in the 4th quarter. Gabelli Funds LLC now owns 14,000 shares of the company's stock valued at $2,001,000 after acquiring an additional 6,000 shares during the last quarter. Finally, United Capital Financial Advisors LLC raised its holdings in Builders FirstSource by 2.8% in the 4th quarter. United Capital Financial Advisors LLC now owns 4,274 shares of the company's stock valued at $611,000 after acquiring an additional 115 shares during the last quarter. 95.53% of the stock is currently owned by institutional investors and hedge funds.

Builders FirstSource Trading Up 8.5%

Shares of BLDR stock traded up $11.36 on Friday, reaching $144.58. 1,600,265 shares of the stock were exchanged, compared to its average volume of 1,959,179. The stock has a market cap of $15.98 billion, a P/E ratio of 21.93, a price-to-earnings-growth ratio of 14.06 and a beta of 1.68. The company has a quick ratio of 1.08, a current ratio of 1.79 and a debt-to-equity ratio of 1.12. The firm has a 50 day moving average of $127.03 and a two-hundred day moving average of $126.00. Builders FirstSource, Inc. has a 1-year low of $102.60 and a 1-year high of $203.14.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $2.38 earnings per share for the quarter, topping analysts' consensus estimates of $2.35 by $0.03. Builders FirstSource had a net margin of 4.74% and a return on equity of 24.61%. The firm had revenue of $4.23 billion during the quarter, compared to analysts' expectations of $4.29 billion. During the same period in the prior year, the company earned $3.50 EPS. The firm's revenue was down 5.0% on a year-over-year basis. Builders FirstSource has set its FY 2025 guidance at EPS. On average, research analysts anticipate that Builders FirstSource, Inc. will post 11.59 EPS for the current year.

Builders FirstSource announced that its Board of Directors has authorized a share repurchase program on Thursday, May 1st that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to repurchase up to 3.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other Builders FirstSource 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 purchased at an average cost of $109.67 per share, with a total value of $548,350.00. Following the transaction, the director owned 5,000 shares in the company, valued at approximately $548,350. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 2.00% of the company's stock.

Wall Street Analyst Weigh In

BLDR has been the subject of several analyst reports. DA Davidson cut their price target on Builders FirstSource from $135.00 to $125.00 and set a "neutral" rating for the company in a report on Monday, August 4th. Oppenheimer set a $155.00 price target on Builders FirstSource and gave the company an "outperform" rating in a report on Thursday, July 10th. Royal Bank Of Canada downgraded Builders FirstSource from an "outperform" rating to a "sector perform" rating and dropped their price objective for the stock from $132.00 to $129.00 in a report on Friday, August 1st. Zelman & Associates restated an "underperform" rating on shares of Builders FirstSource in a report on Friday, July 18th. Finally, Barclays dropped their price objective on Builders FirstSource from $137.00 to $135.00 and set an "overweight" rating for the company in a report on Friday, August 1st. Eleven equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $154.44.

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.