Wealthquest Corp Makes New Investment in Builders FirstSource, Inc. (NYSE:BLDR)

Key Points

• Wealthquest Corp has acquired a stake of 2,191 shares in Builders FirstSource, Inc., valued at approximately $274,000, during the first quarter of this year.
• Insider trading activity includes Director Paul S. Levy purchasing 283,517 shares for about $31.5 million, raising his ownership by 20.41%.
• Builders FirstSource has initiated a $500 million share repurchase program, highlighting management's belief that the stock is undervalued, while institutional ownership sits at 95.53%.

Wealthquest Corp bought a new position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 2,191 shares of the company's stock, valued at approximately $274,000.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. New Age Alpha Advisors LLC bought a new position in Builders FirstSource during the 4th quarter valued at $74,000. Orion Portfolio Solutions LLC raised its holdings in Builders FirstSource by 89.5% during the fourth quarter. Orion Portfolio Solutions LLC now owns 6,317 shares of the company's stock valued at $903,000 after buying an additional 2,983 shares in the last quarter. Schroder Investment Management Group raised its holdings in Builders FirstSource by 125.8% during the fourth quarter. Schroder Investment Management Group now owns 13,921 shares of the company's stock valued at $1,996,000 after buying an additional 7,756 shares in the last quarter. CIBC Private Wealth Group LLC grew its position in Builders FirstSource by 30.8% during the fourth quarter. CIBC Private Wealth Group LLC now owns 3,750 shares of the company's stock worth $538,000 after buying an additional 882 shares in the last quarter. Finally, B. Metzler seel. Sohn & Co. AG boosted its holdings in Builders FirstSource by 2.4% during the fourth quarter. B. Metzler seel. Sohn & Co. AG now owns 7,303 shares of the company's stock valued at $1,044,000 after purchasing an additional 168 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 research firms recently weighed in on BLDR. Wedbush dropped their price target on Builders FirstSource from $190.00 to $145.00 and set an "outperform" rating for the company in a report on Friday, June 20th. Stephens reduced their target price on shares of Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating for the company in a research note on Friday, May 2nd. Stifel Nicolaus increased their target price on shares of Builders FirstSource from $118.00 to $128.00 and gave the stock a "hold" rating in a research report on Friday. BMO Capital Markets lowered their target price on shares of Builders FirstSource from $146.00 to $135.00 and set a "market perform" rating for the company in a research note on Monday, May 5th. Finally, Oppenheimer set a $155.00 price target on shares of Builders FirstSource and gave the stock an "outperform" rating in a report on Thursday, July 10th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and twelve have issued a buy rating to the company's stock. According to MarketBeat, Builders FirstSource presently has an average rating of "Moderate Buy" and a consensus target price of $156.16.

Builders FirstSource Stock Performance

Shares of BLDR traded up $4.27 during mid-day trading on Tuesday, hitting $132.45. The stock had a trading volume of 1,575,352 shares, compared to its average volume of 1,958,774. The company has a market cap of $14.64 billion, a PE ratio of 20.05, a PEG ratio of 11.90 and a beta of 1.68. The company's fifty day simple moving average is $120.91 and its two-hundred day simple moving average is $128.40. 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 fifty-two week low of $102.60 and a fifty-two week 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 (EPS) for the quarter, topping the consensus estimate of $2.35 by $0.03. The business had revenue of $4.23 billion for the quarter, compared to the consensus estimate of $4.29 billion. Builders FirstSource had a return on equity of 24.61% and a net margin of 4.74%. The business's revenue was down 5.0% on a year-over-year basis. During the same quarter last year, the business posted $3.50 EPS. On average, equities analysts expect that Builders FirstSource, Inc. will post 11.59 earnings per share for the current year.

Builders FirstSource announced that its board has authorized a stock repurchase plan on Thursday, May 1st that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 3.9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling at Builders FirstSource

In related news, Director Paul S. Levy bought 283,517 shares of the firm's stock in a transaction that occurred on Thursday, May 8th. The shares were acquired at an average cost of $111.21 per share, for a total transaction of $31,529,925.57. Following the acquisition, the director directly owned 1,672,687 shares of the company's stock, valued at $186,019,521.27. The trade was a 20.41% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Dirkson R. Charles purchased 5,000 shares of the stock in a transaction dated Tuesday, May 27th. The shares were acquired at an average price of $109.67 per share, for a total transaction of $548,350.00. Following the acquisition, the director directly owned 5,000 shares of the company's stock, valued at $548,350. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. Over the last quarter, insiders have bought 505,000 shares of company stock worth $56,032,120. 2.00% of the stock is owned by insiders.

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.