Jefferies Financial Group Has Lowered Expectations for Builders FirstSource (NYSE:BLDR) Stock Price

Key Points

• Jefferies cut its target on Builders FirstSource to $80 (from $85) and kept a "hold" rating, implying roughly an 8.2% upside from the current price.
• Several other firms have lowered targets as well, leaving a MarketBeat consensus of "Hold" with a $101.88 target and analyst tallies of 9 Buys, 10 Holds and 4 Sells.
• Builders FirstSource missed Q1 EPS ($0.27 vs. $0.39 est.) and saw revenue fall 10.1% year-over-year, while the board authorized a $500 million buyback (about 5.4% of shares).

Builders FirstSource (NYSE:BLDR - Get Free Report) had its target price dropped by investment analysts at Jefferies Financial Group from $85.00 to $80.00 in a note issued to investors on Monday,MarketScreener reports. The firm presently has a "hold" rating on the stock. Jefferies Financial Group's target price points to a potential upside of 8.19% from the stock's current price.

Several other analysts have also recently commented on BLDR. Zacks Research cut shares of Builders FirstSource from a "hold" rating to a "strong sell" rating in a research note on Friday. Truist Financial lowered their target price on shares of Builders FirstSource from $145.00 to $115.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. The Goldman Sachs Group dropped their target price on shares of Builders FirstSource from $110.00 to $101.00 in a report on Friday. Benchmark decreased their price target on Builders FirstSource from $138.00 to $105.00 and set a "buy" rating on the stock in a research note on Friday. Finally, Stifel Nicolaus lowered their price target on Builders FirstSource from $115.00 to $93.00 and set a "hold" rating on the stock in a report on Monday, March 16th. Nine analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, Builders FirstSource currently has a consensus rating of "Hold" and a consensus target price of $101.88.

Builders FirstSource Trading Up 0.3%

Shares of BLDR stock opened at $73.95 on Monday. The business's fifty day moving average price is $89.22 and its 200 day moving average price is $104.78. The firm has a market capitalization of $8.18 billion, a PE ratio of 28.34, a P/E/G ratio of 2.35 and a beta of 1.49. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.09. Builders FirstSource has a 1-year low of $73.43 and a 1-year high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $0.27 EPS for the quarter, missing analysts' consensus estimates of $0.39 by ($0.12). The business had revenue of $3.29 billion during the quarter, compared to analyst estimates of $3.17 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. Builders FirstSource's revenue was down 10.1% compared to the same quarter last year. During the same period last year, the business posted $1.51 EPS. As a group, sell-side analysts forecast that Builders FirstSource will post 5.43 EPS for the current fiscal year.

Builders FirstSource declared that its board has authorized a stock buyback plan on Thursday, April 30th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Insider Transactions at Builders FirstSource

In other Builders FirstSource news, Director Paul S. Levy purchased 50,000 shares of Builders FirstSource stock in a transaction on Friday, March 13th. The shares were bought at an average price of $87.73 per share, with a total value of $4,386,500.00. Following the completion of the acquisition, the director directly owned 1,727,191 shares of the company's stock, valued at approximately $151,526,466.43. This trade represents a 2.98% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.70% of the company's stock.

Institutional Investors Weigh In On Builders FirstSource

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cromwell Holdings LLC grew its holdings in Builders FirstSource by 1,323.5% during the 4th quarter. Cromwell Holdings LLC now owns 242 shares of the company's stock valued at $25,000 after buying an additional 225 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of Builders FirstSource by 167.1% in the third quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock worth $26,000 after acquiring an additional 132 shares during the last quarter. Root Financial Partners LLC lifted its position in shares of Builders FirstSource by 43.6% in the first quarter. Root Financial Partners LLC now owns 372 shares of the company's stock valued at $31,000 after acquiring an additional 113 shares in the last quarter. TD Waterhouse Canada Inc. acquired a new stake in shares of Builders FirstSource during the third quarter valued at $34,000. Finally, Transamerica Financial Advisors LLC boosted its stake in shares of Builders FirstSource by 90.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock valued at $38,000 after acquiring an additional 175 shares during the last quarter. Hedge funds and other institutional investors own 95.53% of the company's stock.

Builders FirstSource Company Profile

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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