Builders FirstSource (NYSE:BLDR) Reaches New 52-Week Low - Should You Sell?

Key Points

• Builders FirstSource shares fell 4.9% to a new 52-week low of $53.50, well below their 50-day moving average of $65.06 and 200-day moving average of $74.31.
• Analyst sentiment is mixed, with a consensus rating of “Hold” from 25 analysts and an average price target of $85.45; targets range from $65 to $88 among recent reports.
• The company’s latest quarter showed pressure on results: EPS of $1.17 missed estimates by $0.08, revenue declined 8.8% year over year to $3.86 billion, and last year’s EPS was $2.38.

Shares of Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) hit a new 52-week low on Wednesday. The stock traded as low as $53.50 and last traded at $53.4880, with a volume of 166035 shares traded. The stock had previously closed at $56.22.

Analyst Upgrades and Downgrades

BLDR has been the topic of a number of recent analyst reports. Royal Bank Of Canada decreased their target price on Builders FirstSource from $107.00 to $88.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. DA Davidson set a $68.00 price target on shares of Builders FirstSource in a research note on Friday, July 31st. UBS Group set a $85.00 price objective on shares of Builders FirstSource in a research report on Thursday, October 1st. Citigroup assumed coverage on shares of Builders FirstSource in a research report on Friday, August 21st. They issued a "market perform" rating on the stock. Finally, Stifel Nicolaus set a $65.00 target price on shares of Builders FirstSource in a research note on Friday, September 18th. Nine investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $85.45.

Builders FirstSource Trading Down 4.9%

The business's fifty day moving average is $65.06 and its 200-day moving average is $74.31. 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 firm has a market cap of $5.75 billion, a P/E ratio of 58.80, a price-to-earnings-growth ratio of 1.78 and a beta of 1.45.

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

Institutional Investors Weigh In On Builders FirstSource

Several institutional investors and hedge funds have recently made changes to their positions in BLDR. Sunbelt Securities Inc. lifted its stake in 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 during the period. Root Financial Partners LLC grew its position in shares of Builders FirstSource by 43.6% during the 1st quarter. Root Financial Partners LLC now owns 372 shares of the company's stock worth $31,000 after buying an additional 113 shares during the period. Allworth Financial LP bought a new stake in shares of Builders FirstSource in the 2nd quarter valued at $42,000. Continuum Advisory LLC bought a new stake in shares of Builders FirstSource in the 2nd quarter valued at $48,000. Finally, Global Retirement Partners LLC acquired a new position in shares of Builders FirstSource during the 2nd quarter valued at $49,000. Institutional investors and hedge funds 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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