Builders FirstSource (NYSE:BLDR) Reaches New 52-Week Low - Here's Why

Key Points

• Builders FirstSource shares fell to a new 52-week low of $51.93, well below their 50-day and 200-day moving averages of $63.86 and $73.46, respectively.
• The company’s latest quarterly results missed expectations, with EPS of $1.17 versus the $1.25 consensus and revenue of $3.86 billion versus $3.91 billion; revenue declined 8.8% year over year.
• Analyst sentiment is mixed, with a consensus rating of “Hold” and an average price target of $84.50, while institutional investors own approximately 95.5% of the stock.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report)'s share price reached a new 52-week low during trading on Tuesday. The stock traded as low as $51.93 and last traded at $52.13, with a volume of 1,613,616 shares changing hands. The stock had previously closed at $52.85.

Analyst Upgrades and Downgrades

A number of analysts have commented on BLDR shares. Deutsche Bank Aktiengesellschaft set a $66.00 price objective on Builders FirstSource in a research report on Friday, July 31st. Barclays reduced their target price on Builders FirstSource from $93.00 to $81.00 and set an "overweight" rating for the company in a research report on Friday, July 31st. Royal Bank Of Canada decreased their price target on shares of Builders FirstSource from $107.00 to $88.00 and set an "outperform" rating on the stock in a research note on Friday, July 31st. BMO Capital Markets reaffirmed a "market perform" rating and set a $80.00 price objective on shares of Builders FirstSource in a report on Thursday, August 6th. Finally, Benchmark decreased their price objective on Builders FirstSource from $105.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday, July 23rd. Nine research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $84.50.

Builders FirstSource Stock Performance

The firm has a market capitalization of $5.61 billion, a P/E ratio of 57.29, a price-to-earnings-growth ratio of 1.70 and a beta of 1.45. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.09 and a current ratio of 1.79. The stock has a 50-day moving average of $63.86 and a 200 day moving average of $73.46.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its quarterly 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 the consensus estimate of $3.91 billion. Builders FirstSource had a net margin of 0.71% and a return on equity of 11.73%. The business's quarterly revenue was down 8.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.38 earnings per share. On average, research analysts anticipate that Builders FirstSource, Inc. will post 3.19 earnings per share for the current year.

Institutional Investors Weigh In On Builders FirstSource

Several institutional investors have recently modified their holdings of the business. Sunbelt Securities Inc. raised its position in shares of Builders FirstSource by 508.5% in the first quarter. Sunbelt Securities Inc. now owns 359 shares of the company's stock valued at $30,000 after buying an additional 300 shares in the last quarter. Root Financial Partners LLC grew its stake in Builders FirstSource by 43.6% during the first quarter. Root Financial Partners LLC now owns 372 shares of the company's stock worth $31,000 after buying an additional 113 shares in the last quarter. Allworth Financial LP acquired a new stake in Builders FirstSource during the second quarter worth about $42,000. Continuum Advisory LLC bought a new position in Builders FirstSource in the 2nd quarter valued at about $48,000. Finally, Global Retirement Partners LLC bought a new position in Builders FirstSource in the 2nd quarter valued at about $49,000. Institutional investors and hedge funds own 95.53% of the company's stock.

About Builders FirstSource

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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