Builders FirstSource (NYSE:BLDR) Stock Price Down 5.5% - Time to Sell?

Key Points

• Builders FirstSource shares fell 5.5% to about $64.06, with trading volume roughly 75% below the average session volume.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and an average price target of $75.55, with recent target changes ranging from $56 to $100.
• The company exceeded quarterly earnings expectations, reporting $1.51 in EPS versus the $1.06 consensus and $3.85 billion in revenue, though revenue declined 2.2% year over year.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report)'s share price traded down 5.5% during trading on Tuesday. The stock traded as low as $64.07 and last traded at $64.0590. Approximately 650,683 shares traded hands during trading, a decline of 75% from the average session volume of 2,551,864 shares. The stock had previously closed at $67.82.

Analysts Set New Price Targets

A number of research analysts have issued reports on BLDR shares. Benchmark reduced their target price on shares of Builders FirstSource from $105.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday, July 23rd. William Blair cut Builders FirstSource from an "outperform" rating to a "market perform" rating in a report on Thursday, October 22nd. Truist Financial boosted their price objective on Builders FirstSource from $70.00 to $75.00 and gave the stock a "buy" rating in a research report on Friday. DA Davidson set a $68.00 price objective on Builders FirstSource in a report on Friday, July 31st. Finally, Royal Bank Of Canada lowered their target price on Builders FirstSource from $62.00 to $56.00 and set a "sector perform" rating on the stock in a research report on Friday. Seven research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $75.55.

Builders FirstSource Price Performance

The stock has a market capitalization of $6.86 billion, a price-to-earnings ratio of 171.95, a P/E/G ratio of 1.91 and a beta of 1.41. The company has a quick ratio of 1.09, a current ratio of 1.79 and a debt-to-equity ratio of 1.14. The business has a 50-day simple moving average of $59.24 and a two-hundred day simple moving average of $80.43.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. 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 analysts' expectations of $3.75 billion. During the same period last year, the firm earned $1.88 EPS. The firm's revenue for the quarter was down 2.2% on a year-over-year basis. As a group, research analysts predict that Builders FirstSource, Inc. will post 3.09 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Builders FirstSource

Several hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in shares of Builders FirstSource in the 2nd quarter worth approximately $700,934,000. Dimensional Fund Advisors LP lifted its stake in Builders FirstSource by 12.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,967,744 shares of the company's stock valued at $244,301,000 after purchasing an additional 325,935 shares during the last quarter. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Builders FirstSource during the second quarter valued at approximately $134,908,000. Bank of America Corp DE bought a new stake in Builders FirstSource during the second quarter worth approximately $83,832,000. Finally, Daily Journal Corp bought a new stake in Builders FirstSource during the third quarter worth approximately $80,555,000. 95.53% of the stock is currently owned by institutional investors.

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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