Wellington Management Group LLP Buys 960,603 Shares of Builders FirstSource, Inc. $BLDR

Key Points

• Wellington Management Group LLP increased its stake in Builders FirstSource, Inc. by 42.6%, owning 3,217,125 shares valued at approximately $401.9 million.
• Builders FirstSource's Board of Directors approved a $500 million share buyback plan, indicating management's belief that the stock is undervalued.
• The company reported an EPS of $2.38 for the last quarter, exceeding analysts' expectations, despite a 5% decrease in revenue year-over-year.

Wellington Management Group LLP boosted its stake in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 42.6% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,217,125 shares of the company's stock after buying an additional 960,603 shares during the quarter. Wellington Management Group LLP owned approximately 2.91% of Builders FirstSource worth $401,948,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of the stock. Brooklyn Investment Group boosted its stake in Builders FirstSource by 363.9% in the 1st quarter. Brooklyn Investment Group now owns 719 shares of the company's stock valued at $90,000 after buying an additional 564 shares in the last quarter. Northwest & Ethical Investments L.P. boosted its stake in Builders FirstSource by 200.9% in the first quarter. Northwest & Ethical Investments L.P. now owns 5,778 shares of the company's stock worth $721,000 after purchasing an additional 3,858 shares in the last quarter. Tocqueville Asset Management L.P. boosted its stake in Builders FirstSource by 23.8% in the first quarter. Tocqueville Asset Management L.P. now owns 152,136 shares of the company's stock worth $19,008,000 after purchasing an additional 29,206 shares in the last quarter. Ethic Inc. boosted its stake in Builders FirstSource by 12.1% in the first 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. Finally, Brandywine Global Investment Management LLC boosted its stake in Builders FirstSource by 16.8% in the first quarter. Brandywine Global Investment Management LLC now owns 366,394 shares of the company's stock worth $45,777,000 after purchasing an additional 52,802 shares in the last quarter. Institutional investors and hedge funds own 95.53% of the company's stock.

Analyst Ratings Changes

A number of research firms have commented on BLDR. Wall Street Zen raised Builders FirstSource from a "sell" rating to a "hold" rating in a research note on Friday. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $134.00 price objective on shares of Builders FirstSource in a research note on Friday, August 1st. Zelman & Associates reissued an "underperform" rating on shares of Builders FirstSource in a research note on Friday, July 18th. DA Davidson reduced their price objective on Builders FirstSource from $135.00 to $125.00 and set a "neutral" rating on the stock in a research note on Monday, August 4th. Finally, Royal Bank Of Canada lowered Builders FirstSource from an "outperform" rating to a "sector perform" rating and reduced their price objective for the stock from $132.00 to $129.00 in a research note on Friday, August 1st. Eleven analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $154.44.

Builders FirstSource Trading Up 8.4%

Shares of BLDR stock traded up $11.24 on Friday, reaching $144.46. 4,182,709 shares of the stock were exchanged, compared to its average volume of 2,380,672. The stock has a market cap of $15.97 billion, a PE ratio of 21.92, a P/E/G ratio of 15.30 and a beta of 1.68. Builders FirstSource, Inc. has a one year low of $102.60 and a one year high of $203.14. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.79 and a quick ratio of 1.08. The stock has a 50 day moving average price of $127.70 and a 200 day moving average price of $125.37.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released 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. The company had revenue of $4.23 billion during 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 firm's quarterly revenue was down 5.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.50 earnings per share. Builders FirstSource has set its FY 2025 guidance at EPS. Equities research analysts forecast that Builders FirstSource, Inc. will post 11.59 EPS for the current fiscal year.

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

Insider Buying and Selling

In related news, Director Dirkson R. Charles acquired 5,000 shares of the company's stock in a transaction that occurred on Tuesday, May 27th. The stock was acquired at an average price of $109.67 per share, for a total transaction of $548,350.00. Following the completion of the acquisition, the director owned 5,000 shares of the company's stock, valued at $548,350. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate 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.