Royal Bank Of Canada Has Lowered Expectations for Builders FirstSource (NYSE:BLDR) Stock Price

Key Points

• Royal Bank of Canada cut its price target on Builders FirstSource to $110 (from $119) but kept an Outperform rating, implying roughly a 23.9% upside from the prior close.
• Multiple brokers have trimmed targets (Deutsche Bank, Jefferies, Benchmark among them), leaving a consensus rating of Hold (9 Buy, 11 Hold, 3 Sell) and an average price target of $118.87.
• Builders FirstSource recently missed quarterly estimates (EPS $1.12 vs. $1.30) with revenue down 12.1% y/y, while director Paul S. Levy purchased 50,000 shares at $87.73, increasing insider ownership.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its target price dropped by investment analysts at Royal Bank Of Canada from $119.00 to $110.00 in a report released on Monday,MarketScreener reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's price target would indicate a potential upside of 23.86% from the company's previous close.

BLDR has been the topic of several other research reports. Deutsche Bank Aktiengesellschaft reduced their price objective on shares of Builders FirstSource from $117.00 to $102.00 and set a "hold" rating on the stock in a research report on Monday, February 23rd. Jefferies Financial Group cut their target price on shares of Builders FirstSource from $110.00 to $85.00 and set a "hold" rating for the company in a research note on Monday, April 13th. Benchmark decreased their price target on shares of Builders FirstSource from $142.00 to $138.00 and set a "buy" rating on the stock in a research note on Friday, February 20th. Zacks Research raised shares of Builders FirstSource from a "strong sell" rating to a "hold" rating in a report on Friday, March 20th. Finally, William Blair assumed coverage on Builders FirstSource in a report on Thursday, February 26th. They issued an "outperform" rating on the stock. Nine research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, Builders FirstSource currently has an average rating of "Hold" and an average price target of $118.87.

Builders FirstSource Stock Performance

NYSE BLDR opened at $88.81 on Monday. The company has a quick ratio of 1.16, a current ratio of 1.86 and a debt-to-equity ratio of 1.02. Builders FirstSource has a twelve month low of $76.50 and a twelve month high of $151.03. The business has a 50-day moving average price of $94.78 and a 200-day moving average price of $107.22. The firm has a market cap of $9.82 billion, a price-to-earnings ratio of 23.09, a price-to-earnings-growth ratio of 2.20 and a beta of 1.63.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its earnings results on Tuesday, February 17th. The company reported $1.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.30 by ($0.18). Builders FirstSource had a net margin of 2.87% and a return on equity of 17.89%. The business had revenue of $3.36 billion for the quarter, compared to the consensus estimate of $3.46 billion. During the same period last year, the business posted $2.31 EPS. The firm's revenue for the quarter was down 12.1% compared to the same quarter last year. As a group, equities research analysts predict that Builders FirstSource will post 11.59 EPS for the current fiscal year.

Insider Buying and Selling at Builders FirstSource

In other news, Director Paul S. Levy bought 50,000 shares of the stock in a transaction dated Friday, March 13th. The stock was purchased at an average price of $87.73 per share, for a total transaction of $4,386,500.00. Following the acquisition, the director owned 1,727,191 shares of the company's stock, valued at $151,526,466.43. The trade was a 2.98% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 2.70% of the company's stock.

Institutional Trading of Builders FirstSource

Several institutional investors have recently added to or reduced their stakes in BLDR. State Street Corp boosted its position in shares of Builders FirstSource by 2.3% during the fourth quarter. State Street Corp now owns 5,108,120 shares of the company's stock valued at $525,574,000 after buying an additional 115,857 shares during the period. Capital International Investors bought a new position in shares of Builders FirstSource during the third quarter valued at approximately $429,640,000. Wellington Management Group LLP raised its holdings in shares of Builders FirstSource by 2.3% in the fourth quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company's stock worth $341,265,000 after buying an additional 73,835 shares during the period. Geode Capital Management LLC lifted its stake in shares of Builders FirstSource by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 2,817,958 shares of the company's stock worth $288,789,000 after acquiring an additional 14,420 shares during the last quarter. Finally, Sands Capital Management LLC lifted its stake in shares of Builders FirstSource by 13.5% during the 4th quarter. Sands Capital Management LLC now owns 2,757,969 shares of the company's stock worth $283,767,000 after acquiring an additional 327,067 shares during the last quarter. Institutional investors own 95.53% of the company's stock.

About Builders FirstSource

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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