Builders FirstSource (NYSE:BLDR) Hits New 52-Week Low - What's Next?

Key Points

• Builders FirstSource shares fell to a new 52-week low of $56.20, well below their 50-day and 200-day moving averages of $66.34 and $75.21, respectively.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and an average price target of $87.27, with recent actions ranging from “strong sell” to “outperform.”
• The company missed quarterly expectations, reporting $1.17 in EPS versus $1.25 expected and revenue of $3.86 billion versus $3.91 billion; revenue declined 8.8% year over year.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Thursday. The stock traded as low as $56.20 and last traded at $55.6630, with a volume of 69033 shares trading hands. The stock had previously closed at $57.01.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on BLDR. DA Davidson set a $68.00 price target on Builders FirstSource in a report on Friday, July 31st. Oppenheimer cut their price objective on shares of Builders FirstSource from $110.00 to $90.00 and set an "outperform" rating on the stock in a report on Friday, July 31st. Robert W. Baird set a $75.00 price objective on shares of Builders FirstSource in a research report on Friday, July 31st. Zacks Research cut shares of Builders FirstSource from a "hold" rating to a "strong sell" rating in a research note on Monday, August 3rd. Finally, Citizens Jmp initiated coverage on shares of Builders FirstSource in a research report on Friday, August 21st. They set a "market perform" rating on the stock. Nine research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $87.27.

Builders FirstSource Price Performance

The stock has a 50 day simple moving average of $66.34 and a two-hundred day simple moving average of $75.21. The firm has a market cap of $5.93 billion, a PE ratio of 60.35, a price-to-earnings-growth ratio of 1.85 and a beta of 1.41. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.09 and a current ratio of 1.79.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.17 EPS for the quarter, missing analysts' consensus estimates of $1.25 by ($0.08). The company had revenue of $3.86 billion during the quarter, compared to analysts' expectations of $3.91 billion. Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%.The firm's quarterly revenue was down 8.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.38 EPS. Sell-side analysts expect that Builders FirstSource, Inc. will post 3.19 earnings per share for the current year.

Institutional Investors Weigh In On Builders FirstSource

Several hedge funds have recently bought and sold shares of BLDR. BlackRock Inc. acquired a new position in shares of Builders FirstSource in the 2nd quarter valued at $700,934,000. Dimensional Fund Advisors LP grew 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 buying an additional 325,935 shares during the period. Sands Capital Management LLC grew its position in Builders FirstSource by 13.5% during the fourth quarter. Sands Capital Management LLC now owns 2,757,969 shares of the company's stock valued at $283,767,000 after buying an additional 327,067 shares during the period. Diamond Hill Capital Management LLC Investment Advisor purchased a new position in Builders FirstSource in the second quarter valued at $134,908,000. Finally, Pictet Asset Management Holding SA increased its holdings in Builders FirstSource by 74.6% in the first quarter. Pictet Asset Management Holding SA now owns 1,378,332 shares of the company's stock valued at $113,478,000 after buying an additional 588,987 shares in the last quarter. Hedge funds and other institutional investors own 95.53% of the company's stock.

Builders FirstSource Company Profile

Builders FirstSource, Inc NYSE: BLDR is a supplier and manufacturer of building materials, manufactured components and construction services for professional homebuilders, contractors, remodelers and other construction professionals in the United States. The company serves customers through a network of locations across the country and supports both residential and selected commercial construction projects.

Its product offerings include lumber and other structural materials, engineered wood products, windows, interior and exterior doors, roofing, siding, cabinets, flooring and related building supplies.

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