Builders FirstSource (NYSE:BLDR) Reaches New 52-Week Low - Time to Sell?

Key Points

• Builders FirstSource shares fell to a new 52-week low of $57.93, well below their 50-day and 200-day moving averages of $69.47 and $77.79, respectively.
• Analysts have become more cautious: the consensus rating is “Hold,” with 12 Holds, 9 Buys and 3 Sells, while the average price target is $87.52. Zacks Research downgraded the stock to “Strong Sell,” and several firms reduced their targets.
• The company’s latest quarter missed expectations, reporting $1.17 in EPS versus $1.25 expected and revenue of $3.86 billion versus $3.91 billion forecast; revenue declined 8.8% year over year.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report)'s share price hit a new 52-week low during trading on Thursday . The company traded as low as $57.93 and last traded at $58.07, with a volume of 1084152 shares. The stock had previously closed at $59.65.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Wells Fargo & Company cut their target price on Builders FirstSource from $65.00 to $63.00 and set an "equal weight" rating on the stock in a research report on Friday, September 11th. Robert W. Baird set a $75.00 price target on shares of Builders FirstSource in a report on Friday, July 31st. Royal Bank Of Canada dropped their price objective on Builders FirstSource from $107.00 to $88.00 and set an "outperform" rating on the stock in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $66.00 price target on Builders FirstSource in a research report on Friday, July 31st. Finally, Zacks Research downgraded shares of Builders FirstSource from a "hold" rating to a "strong sell" rating in a report on Monday, August 3rd. Nine equities 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's stock. According to MarketBeat.com, Builders FirstSource presently has an average rating of "Hold" and a consensus target price of $87.52.

Builders FirstSource Price Performance

The company has a debt-to-equity ratio of 1.14, a current ratio of 1.79 and a quick ratio of 1.09. The firm has a market capitalization of $6.19 billion, a price-to-earnings ratio of 63.21, a PEG ratio of 1.93 and a beta of 1.41. The stock has a 50 day moving average price of $69.47 and a two-hundred day moving average price of $77.79.

Builders FirstSource (NYSE:BLDR - Get Free Report) last posted 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). 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 analysts' expectations of $3.91 billion. During the same period in the previous year, the business posted $2.38 EPS. The company's revenue for the quarter was down 8.8% compared to the same quarter last year. As a group, analysts expect that Builders FirstSource, Inc. will post 3.19 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Sunbelt Securities Inc. lifted its holdings in Builders FirstSource by 508.5% during the 1st quarter. Sunbelt Securities Inc. now owns 359 shares of the company's stock worth $30,000 after buying an additional 300 shares during the last quarter. Root Financial Partners LLC increased its holdings in shares of Builders FirstSource by 43.6% in the first quarter. Root Financial Partners LLC now owns 372 shares of the company's stock valued at $31,000 after purchasing an additional 113 shares during the period. Clearstead Advisors LLC increased its stake in Builders FirstSource by 100.0% in the 4th quarter. Clearstead Advisors LLC now owns 466 shares of the company's stock valued at $48,000 after buying an additional 233 shares during the period. Allworth Financial LP acquired a new position in shares of Builders FirstSource during the second quarter worth about $42,000. Finally, Continuum Advisory LLC purchased a new position in shares of Builders FirstSource during the 2nd quarter worth approximately $48,000. Hedge funds and other institutional investors 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 customers. The company serves customers primarily across the United States through a network of locations and distribution facilities.

Its product offerings include lumber and engineered wood products, windows, doors, siding, roofing, insulation, cabinets, countertops, stairs and other construction materials.

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