Tocqueville Asset Management L.P. Boosts Stake in Builders FirstSource, Inc. (NYSE:BLDR)

Key Points

• Tocqueville Asset Management L.P. increased its stake in Builders FirstSource by 23.8%, holding a total of 152,136 shares worth approximately $19 million as of the most recent SEC filing.
• Builders FirstSource reported earnings of $2.38 per share, exceeding analysts' expectations of $2.35, despite a 5% decline in revenue year-over-year to $4.23 billion.
• The company has approved a $500 million share buyback plan, signaling management's belief that the stock may be undervalued.

Tocqueville Asset Management L.P. lifted its stake in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 23.8% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 152,136 shares of the company's stock after purchasing an additional 29,206 shares during the period. Tocqueville Asset Management L.P. owned 0.14% of Builders FirstSource worth $19,008,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. Ethic Inc. increased its stake in shares of Builders FirstSource by 12.1% in the 1st quarter. Ethic Inc. now owns 4,823 shares of the company's stock worth $606,000 after purchasing an additional 521 shares in the last quarter. Brandywine Global Investment Management LLC increased its stake in Builders FirstSource by 16.8% in the 1st quarter. Brandywine Global Investment Management LLC now owns 366,394 shares of the company's stock worth $45,777,000 after buying an additional 52,802 shares in the last quarter. Aberdeen Group plc increased its stake in Builders FirstSource by 72.7% in the 1st quarter. Aberdeen Group plc now owns 79,455 shares of the company's stock worth $9,808,000 after buying an additional 33,443 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Builders FirstSource by 0.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,244,449 shares of the company's stock worth $280,387,000 after buying an additional 6,453 shares in the last quarter. Finally, Horizon Investments LLC increased its stake in Builders FirstSource by 5.5% in the 1st quarter. Horizon Investments LLC now owns 2,205 shares of the company's stock worth $275,000 after buying an additional 114 shares in the last quarter. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

Builders FirstSource Stock Down 0.8%

BLDR opened at $137.02 on Friday. The company has a quick ratio of 1.08, a current ratio of 1.79 and a debt-to-equity ratio of 1.12. Builders FirstSource, Inc. has a 52 week low of $102.60 and a 52 week high of $203.14. The firm has a 50-day simple moving average of $125.41 and a two-hundred day simple moving average of $126.90. The company has a market capitalization of $15.15 billion, a PE ratio of 20.79, a price-to-earnings-growth ratio of 14.63 and a beta of 1.68.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $2.38 EPS for the quarter, beating 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 the consensus estimate of $4.29 billion. During the same quarter last year, the firm earned $3.50 EPS. The firm's revenue for the quarter was down 5.0% compared to the same quarter last year. Analysts forecast that Builders FirstSource, Inc. will post 11.59 earnings per share for the current fiscal year.

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

Insider Activity at Builders FirstSource

In other Builders FirstSource news, Director Dirkson R. Charles purchased 5,000 shares of the stock in a transaction that occurred on Tuesday, May 27th. The stock was purchased at an average price of $109.67 per share, with a total value of $548,350.00. Following the acquisition, the director owned 5,000 shares in the company, valued at approximately $548,350. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders own 2.00% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Stifel Nicolaus increased their price target on Builders FirstSource from $118.00 to $128.00 and gave the stock a "hold" rating in a research note on Friday, August 1st. Oppenheimer set a $155.00 price target on Builders FirstSource and gave the stock an "outperform" rating in a research note on Thursday, July 10th. Baird R W lowered Builders FirstSource from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 1st. Wall Street Zen lowered Builders FirstSource from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Finally, Royal Bank Of Canada lowered Builders FirstSource from an "outperform" rating to a "sector perform" rating and cut their price target for the stock from $132.00 to $129.00 in a research note on Friday, August 1st. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $154.44.

Builders FirstSource 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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