Builders FirstSource (NYSE:BLDR) Stock Jumps 7.8% on Better-Than-Expected Earnings

Key Points

• Builders FirstSource shares rose 7.8% to about $60.25 after the company reported quarterly EPS of $1.51, exceeding expectations of $1.06. Revenue reached $3.85 billion, above estimates but down 2.2% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $79.35; eight analysts rate the stock Buy, 15 Hold, and two Sell.
• Institutional ownership is substantial at 95.53%, with BlackRock, Dimensional Fund Advisors, and other major investors recently building or initiating positions.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) shot up 7.8% on Thursday following a better than expected earnings announcement. The stock traded as high as $60.99 and last traded at $60.2450. Approximately 551,704 shares changed hands during trading, a decline of 78% from the average session volume of 2,518,297 shares. The stock had previously closed at $55.88.

The company reported $1.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.45. Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%. The company had revenue of $3.85 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the previous year, the firm earned $1.88 earnings per share. The firm's quarterly revenue was down 2.2% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several research firms recently commented on BLDR. Benchmark dropped their target price on Builders FirstSource from $105.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday, July 23rd. BMO Capital Markets reiterated a "market perform" rating and issued a $80.00 target price on shares of Builders FirstSource in a report on Thursday, August 6th. Zacks Research upgraded shares of Builders FirstSource from a "strong sell" rating to a "hold" rating in a report on Friday, October 2nd. Royal Bank Of Canada decreased their price target on shares of Builders FirstSource from $107.00 to $88.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Finally, UBS Group set a $85.00 target price on shares of Builders FirstSource in a report on Thursday, October 1st. Eight research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $79.35.

Hedge Funds Weigh In On Builders FirstSource

Large investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Builders FirstSource during the second quarter worth $700,934,000. Dimensional Fund Advisors LP lifted its stake in Builders FirstSource by 12.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,967,744 shares of the company's stock valued at $244,301,000 after acquiring an additional 325,935 shares in the last quarter. Diamond Hill Capital Management LLC Investment Advisor bought a new stake in Builders FirstSource in the 2nd quarter worth about $134,908,000. Bank of America Corp DE bought a new position in Builders FirstSource during the second quarter valued at $83,832,000. Finally, Jupiter Topco LLC purchased a new position in shares of Builders FirstSource in the second quarter worth about $73,935,000. Hedge funds and other institutional investors own 95.53% of the company's stock.

Builders FirstSource Stock Performance

The business has a 50 day moving average of $59.58 and a 200-day moving average of $81.32. 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 company has a market capitalization of $6.47 billion, a P/E ratio of 66.06, a price-to-earnings-growth ratio of 1.89 and a beta of 1.45.

Builders FirstSource Company Profile

Builders FirstSource, Inc is a supplier of building materials, manufactured components and construction services for professional homebuilders, remodelers and other construction customers in the United States. The company provides products used throughout the residential construction process, from structural framing to interior and exterior finishes.

Its offerings include lumber and engineered wood products, roof and floor trusses, wall panels, prefabricated components, windows, doors, millwork, cabinets, roofing, siding, insulation, gypsum and related hardware.

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