Insider Buying: Builders FirstSource (NYSE:BLDR) Director Acquires 50,000 Shares of Stock

Key Points

• Director Paul Levy acquired 50,000 shares on March 13 at an average price of $87.73 for a total of $4,386,500, raising his direct holdings to 1,727,191 shares (a 2.98% increase).
• BLDR shares traded around $87.05, near the 52-week low of $86.18 and well below the 50-day ($112.89) and 200-day ($115.90) moving averages, indicating recent price weakness.
• Builders FirstSource missed Q4 estimates with EPS $1.12 vs. $1.30 expected and revenue $3.36B vs. $3.46B (revenue down 12.1% YoY); analysts are mixed (consensus "Hold", target $126.65) and institutional investors own about 95.5% of the stock.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) Director Paul Levy acquired 50,000 shares of the stock in a transaction on Friday, March 13th. The shares were acquired at an average price of $87.73 per share, with a total value of $4,386,500.00. Following the transaction, the director directly owned 1,727,191 shares of the company's stock, valued at $151,526,466.43. The trade was a 2.98% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Builders FirstSource Price Performance

Shares of NYSE:BLDR traded down $1.04 on Monday, reaching $87.05. The company's stock had a trading volume of 2,405,147 shares, compared to its average volume of 2,395,878. The company has a 50-day simple moving average of $112.89 and a 200 day simple moving average of $115.90. Builders FirstSource, Inc. has a 52-week low of $86.18 and a 52-week high of $151.03. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.16 and a current ratio of 1.86. The company has a market cap of $9.63 billion, a P/E ratio of 22.44, a PEG ratio of 2.13 and a beta of 1.56.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its earnings results on Tuesday, February 17th. The company reported $1.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.30 by ($0.18). The business had revenue of $3.36 billion for the quarter, compared to analysts' expectations of $3.46 billion. Builders FirstSource had a net margin of 2.87% and a return on equity of 17.89%. The firm's quarterly revenue was down 12.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.31 earnings per share. As a group, equities research analysts anticipate that Builders FirstSource, Inc. will post 11.59 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on BLDR shares. Wells Fargo & Company lifted their target price on Builders FirstSource from $115.00 to $120.00 and gave the stock a "cautious" rating in a report on Wednesday, February 11th. UBS Group decreased their price target on Builders FirstSource from $166.00 to $143.00 and set a "buy" rating on the stock in a report on Tuesday, January 6th. Weiss Ratings restated a "hold (c-)" rating on shares of Builders FirstSource in a research report on Wednesday, January 21st. William Blair assumed coverage on shares of Builders FirstSource in a research note on Thursday, February 26th. They set an "outperform" rating for the company. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of Builders FirstSource from $117.00 to $102.00 and set a "hold" rating on the stock in a research report on Monday, February 23rd. Ten analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $126.65.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. State Street Corp boosted its holdings in Builders FirstSource by 2.3% during the 4th quarter. State Street Corp now owns 5,108,120 shares of the company's stock valued at $525,574,000 after acquiring an additional 115,857 shares during the period. Capital International Investors bought a new position in Builders FirstSource in the 3rd quarter valued at $429,640,000. Wellington Management Group LLP increased its stake in Builders FirstSource by 2.3% in the fourth quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company's stock worth $341,265,000 after purchasing an additional 73,835 shares during the period. Geode Capital Management LLC lifted its position in shares of Builders FirstSource by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 2,817,958 shares of the company's stock worth $288,789,000 after purchasing an additional 14,420 shares during the last quarter. Finally, Sands Capital Management LLC lifted its position in shares of Builders FirstSource by 13.5% during the fourth quarter. Sands Capital Management LLC now owns 2,757,969 shares of the company's stock worth $283,767,000 after purchasing an additional 327,067 shares during the last quarter. Institutional investors own 95.53% of the company's stock.

About Builders FirstSource

Builders FirstSource, Inc is a leading supplier of structural and value-added building products and services to professional contractors, homebuilders and remodelers. The company provides a comprehensive range of materials and prefabricated components that support all phases of residential construction, from site development and framing to finishing and installation.

The company's core offerings include lumber and lumber sheet goods, windows and doors, millwork, roofing and siding, and engineered wood products such as roof and floor trusses.

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