Vanguard Group Inc. Reduces Holdings in Builders FirstSource, Inc. (NYSE:BLDR)

Key Points

• Vanguard Group Inc. reduced its stake in Builders FirstSource by 2.5%, with the fund now owning approximately 13.36 million shares, valued at $1.67 billion.
• Several hedge funds have increased their investments in Builders FirstSource, with Voya Investment Management LLC boosting its holdings by 174.2% in the last quarter.
• Builders FirstSource recently reported earnings of $2.38 per share, and the company has announced a $500 million share buyback plan, indicating potential undervaluation of its stock.

Vanguard Group Inc. cut its stake in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 2.5% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 13,363,975 shares of the company's stock after selling 343,545 shares during the quarter. Vanguard Group Inc. owned approximately 11.75% of Builders FirstSource worth $1,669,695,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. IMA Advisory Services Inc. acquired a new position in Builders FirstSource in the 1st quarter valued at $31,000. Sentry Investment Management LLC purchased a new stake in shares of Builders FirstSource during the first quarter worth $40,000. CX Institutional purchased a new stake in shares of Builders FirstSource during the first quarter worth $45,000. Mather Group LLC. boosted its position in Builders FirstSource by 19.7% during the first quarter. Mather Group LLC. now owns 595 shares of the company's stock worth $74,000 after acquiring an additional 98 shares during the last quarter. Finally, New Age Alpha Advisors LLC lifted its position in Builders FirstSource by 22.8% during the first quarter. New Age Alpha Advisors LLC now owns 640 shares of the company's stock worth $80,000 after buying an additional 119 shares in the last quarter. Hedge funds and other institutional investors own 95.53% of the company's stock.

Analyst Ratings Changes

A number of analysts have issued reports on BLDR shares. Stifel Nicolaus boosted their target price on Builders FirstSource from $118.00 to $128.00 and gave the company a "hold" rating in a research report on Friday, August 1st. Wall Street Zen lowered Builders FirstSource from a "hold" rating to a "sell" rating in a research note on Saturday. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $134.00 price target on shares of Builders FirstSource in a report on Friday, August 1st. Loop Capital reduced their price target on Builders FirstSource from $190.00 to $170.00 and set a "buy" rating for the company in a research report on Monday, April 14th. Finally, DA Davidson reduced their price objective on shares of Builders FirstSource from $135.00 to $125.00 and set a "neutral" rating for the company in a research note on Monday, August 4th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and eleven have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $154.44.

Builders FirstSource Price Performance

Shares of NYSE BLDR traded up $8.61 during trading hours on Tuesday, hitting $137.37. 2,355,803 shares of the stock were exchanged, compared to its average volume of 2,109,251. Builders FirstSource, Inc. has a 1-year low of $102.60 and a 1-year high of $203.14. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.08 and a current ratio of 1.79. The company has a market cap of $15.19 billion, a PE ratio of 20.84, a price-to-earnings-growth ratio of 13.64 and a beta of 1.68. The company's fifty day simple moving average is $123.77 and its two-hundred day simple moving average is $127.25.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its 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 business 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 earnings per share. Builders FirstSource's quarterly revenue was down 5.0% on a year-over-year basis. On average, sell-side analysts predict that Builders FirstSource, Inc. will post 11.59 EPS for the current year.

Builders FirstSource announced that its Board of Directors has authorized a stock buyback plan on Thursday, May 1st that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to buy up to 3.9% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In other news, Director Dirkson R. Charles bought 5,000 shares of the stock in a transaction on Tuesday, May 27th. The shares were purchased at an average cost of $109.67 per share, for a total transaction of $548,350.00. Following the completion of the purchase, the director directly owned 5,000 shares in the company, valued at $548,350. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 1.80% of the company's stock.

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.