Builders FirstSource (NYSE:BLDR) Hits New 1-Year Low - Should You Sell?

Key Points

• Builders FirstSource shares fell to a new 52-week low of $61.51, well below their 50-day and 200-day moving averages of $72.02 and $79.79, respectively.
• Analyst sentiment is mixed but leans cautious: the stock carries an average “Hold” rating and a $90.35 price target, while recent firms lowered targets and one downgraded the shares to “Strong Sell.”
• The company missed quarterly expectations, reporting $1.17 in EPS versus $1.25 expected and $3.86 billion in revenue versus $3.91 billion forecast; revenue declined 8.8% year over year.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) hit a new 52-week low on Wednesday . The stock traded as low as $61.51 and last traded at $61.6510, with a volume of 98447 shares traded. The stock had previously closed at $62.58.

Wall Street Analysts Forecast Growth

BLDR has been the subject of several research analyst reports. Zacks Research lowered Builders FirstSource from a "hold" rating to a "strong sell" rating in a report on Monday, August 3rd. Barclays decreased their target price on shares of Builders FirstSource from $93.00 to $81.00 and set an "overweight" rating for the company in a research report on Friday, July 31st. DA Davidson set a $68.00 price objective on shares of Builders FirstSource in a research note on Friday, July 31st. KeyCorp cut their target price on Builders FirstSource from $100.00 to $91.00 and set an "overweight" rating for the company in a research report on Monday, July 13th. Finally, Citizens Jmp assumed coverage on shares of Builders FirstSource in a research note on Friday, August 21st. They issued a "market perform" rating on the stock. Nine analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $90.35.

Builders FirstSource Stock Performance

The firm's 50-day simple moving average is $72.02 and its two-hundred day simple moving average is $79.79. The company has a current ratio of 1.79, a quick ratio of 1.09 and a debt-to-equity ratio of 1.14. The stock has a market capitalization of $6.71 billion, a PE ratio of 68.67, a PEG ratio of 2.14 and a beta of 1.41.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $1.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.25 by ($0.08). The business had revenue of $3.86 billion during the quarter, compared to analysts' expectations of $3.91 billion. Builders FirstSource had a net margin of 0.71% and a return on equity of 11.73%. Builders FirstSource's revenue for the quarter was down 8.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.38 EPS. On average, equities research analysts expect that Builders FirstSource, Inc. will post 3.15 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. California State Teachers Retirement System lifted its position in Builders FirstSource by 6,687.9% in the 2nd quarter. California State Teachers Retirement System now owns 11,177,842 shares of the company's stock worth $1,000,193,000 after buying an additional 11,013,170 shares in the last quarter. BlackRock Inc. purchased a new position in shares of Builders FirstSource during the 2nd quarter valued at $700,934,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Builders FirstSource by 99,084.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company's stock worth $230,634,000 after acquiring an additional 2,239,301 shares during the last quarter. Diamond Hill Capital Management LLC Investment Advisor acquired a new position in shares of Builders FirstSource in the second quarter worth $134,908,000. Finally, Norges Bank purchased a new stake in shares of Builders FirstSource during the fourth quarter worth $109,269,000. 95.53% of the stock is owned by hedge funds and other institutional investors.

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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