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

Key Points

• Royal Bank of Canada lowered its Builders FirstSource price target from $107 to $88 but maintained an “Outperform” rating, implying 33.45% upside from the stock’s previous close.
• BLDR shares traded near $65.94, close to their 52-week low, after the company reported second-quarter EPS of $1.17 and revenue of $3.86 billion—both below estimates. Revenue fell 8.8% year over year, while EPS declined from $2.38 a year earlier.
• Analyst sentiment remains mixed: MarketBeat reports a consensus “Hold” rating and average target of $90.59, while the company has authorized a $500 million share buyback covering up to 5.4% of outstanding shares.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price objective reduced by equities researchers at Royal Bank Of Canada from $107.00 to $88.00 in a research note issued on Friday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target suggests a potential upside of 33.45% from the stock's previous close.

BLDR has been the subject of several other research reports. Benchmark lowered their target price on shares of Builders FirstSource from $105.00 to $100.00 and set a "buy" rating for the company in a report on Thursday, July 23rd. Wells Fargo & Company cut their price target on shares of Builders FirstSource from $85.00 to $65.00 and set an "equal weight" rating on the stock in a report on Friday. BMO Capital Markets reduced their price objective on shares of Builders FirstSource from $93.00 to $85.00 and set a "market perform" rating for the company in a research report on Tuesday. Weiss Ratings downgraded shares of Builders FirstSource from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, July 21st. Finally, Deutsche Bank Aktiengesellschaft set a $66.00 price objective on shares of Builders FirstSource in a research note on Friday. Nine investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Builders FirstSource has a consensus rating of "Hold" and an average price target of $90.59.

Builders FirstSource Stock Down 0.1%

Builders FirstSource stock traded down $0.07 during trading on Friday, hitting $65.94. 1,616,066 shares of the company were exchanged, compared to its average volume of 2,453,510. The business's 50 day moving average is $77.08 and its 200 day moving average is $90.01. Builders FirstSource has a 52 week low of $65.10 and a 52 week high of $151.03. The company has a market capitalization of $7.09 billion, a P/E ratio of 25.20, a PEG ratio of 1.67 and a beta of 1.42. The company has a current ratio of 1.76, a quick ratio of 1.09 and a debt-to-equity ratio of 1.15.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued 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). The company had revenue of $3.86 billion for the quarter, compared to the consensus estimate of $3.91 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. Builders FirstSource's revenue was down 8.8% on a year-over-year basis. During the same quarter last year, the business posted $2.38 earnings per share. Analysts predict that Builders FirstSource will post 4.16 earnings per share for the current year.

Builders FirstSource announced that its board has approved a share buyback program on Thursday, April 30th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 5.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Builders FirstSource

Several institutional investors have recently added to or reduced their stakes in BLDR. Daiwa Securities Group Inc. raised its position in shares of Builders FirstSource by 0.4% in the second quarter. Daiwa Securities Group Inc. now owns 17,630 shares of the company's stock valued at $2,057,000 after buying an additional 78 shares during the last quarter. New Mexico Educational Retirement Board boosted its position in Builders FirstSource by 2.0% during the fourth quarter. New Mexico Educational Retirement Board now owns 5,100 shares of the company's stock worth $525,000 after acquiring an additional 100 shares during the last quarter. Moors & Cabot Inc. grew its stake in Builders FirstSource by 1.5% during the 4th quarter. Moors & Cabot Inc. now owns 7,388 shares of the company's stock valued at $760,000 after acquiring an additional 109 shares in the last quarter. Root Financial Partners LLC grew its stake in Builders FirstSource by 43.6% during the 1st quarter. Root Financial Partners LLC now owns 372 shares of the company's stock valued at $31,000 after acquiring an additional 113 shares in the last quarter. Finally, CIBC Private Wealth Group LLC raised its holdings in Builders FirstSource by 5.9% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,272 shares of the company's stock valued at $275,000 after acquiring an additional 126 shares during the last quarter. Institutional investors own 95.53% of the company's stock.

Builders FirstSource News Summary

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Truist Financial lowered its price target to $90 from $115 but maintained a Buy rating, implying approximately 37% upside from recent levels. Benzinga analyst action
• Positive Sentiment: Oppenheimer cut its target to $90 from $110 while retaining an Outperform rating, also indicating roughly 37% potential upside. Benzinga analyst action
• Neutral Sentiment: Wells Fargo reduced its target to $65 from $85 and shifted to an Equal Weight rating, suggesting limited near-term upside at current prices. Tickerreport analyst action
• Neutral Sentiment: BMO Capital Markets and Stifel Nicolaus maintained Hold ratings, reflecting continued caution toward the building-products sector. BMO analyst action
• Negative Sentiment: BLDR reported second-quarter EPS of $1.17, below the $1.25 consensus, while revenue of $3.86 billion missed estimates of $3.91 billion. EPS fell sharply from $2.38 a year earlier, and revenue declined 8.8% year over year. Builders FirstSource earnings report
• Negative Sentiment: Management’s fiscal 2026 revenue outlook of $14.0 billion to $14.8 billion trails the $14.8 billion consensus at the upper end, reinforcing concerns about weaker housing demand and a delayed recovery. Zacks earnings analysis

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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