Oppenheimer Lowers Builders FirstSource (NYSE:BLDR) Price Target to $90.00

Key Points

• Oppenheimer lowered Builders FirstSource’s price target from $110 to $90 while maintaining an “outperform” rating, implying 36.43% upside from the prior close. The broader analyst consensus is “Hold,” with an average target of $91.50.
• Builders FirstSource reported quarterly EPS of $1.17, missing the $1.25 consensus estimate, while revenue fell 8.8% year over year to $3.86 billion and also missed expectations.
• The stock traded near its 52-week low at $65.97, amid continued housing-market concerns. The company has authorized a $500 million share buyback, and institutional investors own 95.53% of its shares.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price target cut by investment analysts at Oppenheimer from $110.00 to $90.00 in a research note issued on Friday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Oppenheimer's price target would suggest a potential upside of 36.43% from the stock's previous close.

A number of other brokerages have also commented on BLDR. Wells Fargo & Company decreased their price target on shares of Builders FirstSource from $85.00 to $65.00 and set an "equal weight" rating on the stock in a research note on Friday. Barclays reduced their price objective on Builders FirstSource from $93.00 to $81.00 and set an "overweight" rating for the company in a report on Friday. Deutsche Bank Aktiengesellschaft set a $66.00 target price on Builders FirstSource in a research report on Friday. Loop Capital dropped their price target on Builders FirstSource from $140.00 to $110.00 in a report on Friday, May 1st. Finally, Royal Bank Of Canada decreased their price objective on Builders FirstSource from $110.00 to $107.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. Nine investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $91.50.

Builders FirstSource Stock Performance

Builders FirstSource stock traded down $0.04 during mid-day trading on Friday, hitting $65.97. 1,021,858 shares of the company's stock traded hands, compared to its average volume of 2,448,875. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.09. The firm has a 50 day simple moving average of $77.08 and a two-hundred day simple moving average of $90.01. Builders FirstSource has a fifty-two week low of $65.10 and a fifty-two week high of $151.03. The stock has a market cap of $7.10 billion, a price-to-earnings ratio of 25.27, a P/E/G ratio of 1.67 and a beta of 1.42.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.17 EPS for the quarter, missing the consensus estimate of $1.25 by ($0.08). The company had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.91 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. Builders FirstSource's revenue for the quarter was down 8.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.38 earnings per share. On average, research analysts expect that Builders FirstSource will post 4.16 EPS for the current fiscal year.

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. State Street Corp raised its position in shares of Builders FirstSource by 2.3% in the 4th quarter. State Street Corp now owns 5,108,120 shares of the company's stock valued at $525,574,000 after buying an additional 115,857 shares in the last quarter. Wellington Management Group LLP raised its position in Builders FirstSource by 2.3% during the fourth quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company's stock valued at $341,265,000 after purchasing an additional 73,835 shares in the last quarter. Dimensional Fund Advisors LP raised its position in Builders FirstSource by 12.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,967,744 shares of the company's stock valued at $244,301,000 after purchasing an additional 325,935 shares in the last quarter. Geode Capital Management LLC lifted its stake in 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 boosted its holdings in shares of Builders FirstSource by 13.5% in the 4th quarter. Sands Capital Management LLC now owns 2,757,969 shares of the company's stock valued at $283,767,000 after purchasing an additional 327,067 shares in the last quarter. Institutional investors own 95.53% of the company's stock.

Trending Headlines about Builders FirstSource

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Truist Financial maintained a Buy rating despite reducing its price target from $115 to $90. The new target still implies substantial potential upside, suggesting the firm expects a recovery in housing-related demand over time. Benzinga analyst update
• Neutral Sentiment: BMO Capital Markets and Stifel Nicolaus reportedly retained Hold ratings, reflecting a wait-and-see stance following the earnings release and uncertainty around the timing of a housing-market recovery. BMO analyst update
• Negative Sentiment: Wells Fargo lowered its price target from $85 to $65 and shifted to an Equal Weight rating. The revised target indicates limited near-term upside and reinforces concerns that earnings recovery may take longer than previously expected. Wells Fargo analyst update
• Negative Sentiment: Builders FirstSource reported second-quarter EPS of $1.17, below the $1.25 consensus estimate and down sharply from $2.38 a year earlier. Revenue of $3.86 billion also missed expectations of $3.91 billion and declined 8.8% year over year. Builders FirstSource Q2 earnings report
• Negative Sentiment: Management issued 2026 revenue guidance of $14.0 billion to $14.8 billion, below the $14.8 billion consensus at the midpoint and signaling continued softness in construction demand. Weaker housing activity and reduced profitability are the main drivers of the negative investor reaction. Builders FirstSource outlook report

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.