Builders FirstSource (NYSE:BLDR) Sets New 1-Year Low - Here's Why

Key Points

• Builders FirstSource shares fell to a new 52-week low of $64.61, trading about 1.7% lower at roughly $65.02 and well below their 50-day and 200-day moving averages.
• The decline followed a weak quarterly report: earnings per share came in at $1.17 versus the $1.25 consensus estimate, while revenue fell 8.8% year over year to $3.86 billion.
• Analysts have cut several price targets, including RBC’s reduction to $88 and Barclays’ to $81. Despite nine Buy ratings, the overall consensus is Hold, with a $90.35 target price.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) shares hit a new 52-week low during trading on Tuesday . The stock traded as low as $64.61 and last traded at $65.0180, with a volume of 156791 shares traded. The stock had previously closed at $66.40.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Wolfe Research upgraded shares of Builders FirstSource to a "hold" rating in a research note on Thursday, May 14th. BMO Capital Markets reissued a "market perform" rating and issued a $80.00 price objective on shares of Builders FirstSource in a report on Thursday, August 6th. DA Davidson set a $68.00 price target on shares of Builders FirstSource in a research report on Friday, July 31st. Royal Bank Of Canada lowered their price objective 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. Finally, Barclays lowered their price target on Builders FirstSource from $93.00 to $81.00 and set an "overweight" rating on the stock in a research report on Friday, July 31st. Nine analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $90.35.

Builders FirstSource Trading Down 1.7%

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 market capitalization of $7.03 billion, a price-to-earnings ratio of 71.85, a price-to-earnings-growth ratio of 2.20 and a beta of 1.44. The business has a fifty day simple moving average of $74.74 and a 200 day simple moving average of $82.06.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.17 earnings per share 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 company had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.91 billion. During the same period in the prior year, the firm earned $2.38 earnings per share. Builders FirstSource's revenue was down 8.8% on a year-over-year basis. As a group, research analysts expect that Builders FirstSource, Inc. will post 3.15 EPS for the current year.

Institutional Investors Weigh In On Builders FirstSource

Large investors have recently modified their holdings of the business. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Builders FirstSource in the 2nd quarter valued at approximately $644,000. CYBER HORNET ETFs LLC raised its position in shares of Builders FirstSource by 3,154.1% during the second quarter. CYBER HORNET ETFs LLC now owns 9,925 shares of the company's stock worth $885,000 after acquiring an additional 9,620 shares during the last quarter. California State Teachers Retirement System boosted its holdings in Builders FirstSource by 6,687.9% in the second quarter. California State Teachers Retirement System now owns 11,177,842 shares of the company's stock valued at $1,000,193,000 after acquiring an additional 11,013,170 shares during the last quarter. NEOS Investment Management LLC lifted its position in shares of Builders FirstSource by 12.8% in the 2nd quarter. NEOS Investment Management LLC now owns 17,226 shares of the company's stock worth $1,541,000 after purchasing an additional 1,948 shares during the period. Finally, Continuum Advisory LLC bought a new position in Builders FirstSource during the second quarter worth $48,000. Institutional investors and hedge funds own 95.53% of the company's stock.

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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