Short Interest in Builders FirstSource, Inc. (NYSE:BLDR) Increases By 18.4%

Key Points

• Short interest in Builders FirstSource rose 18.4% to 6,603,493 shares as of March 13, equal to about 6.1% of shares sold short and a days-to-cover ratio of 2.2.
• Director Paul S. Levy purchased 50,000 shares at $87.73 on March 13 (≈$4.39M), raising his holding to 1,727,191 shares; company insiders own 1.80% of the stock.
• The company missed the quarter with $1.12 EPS versus $1.30 expected and revenue down 12.1% year-over-year, while shares trade near the 52-week low (~$82) and analysts carry a consensus "Hold" with an average target of $126.65.

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) saw a significant increase in short interest in March. As of March 13th, there was short interest totaling 6,603,493 shares, an increase of 18.4% from the February 26th total of 5,576,445 shares. Based on an average daily volume of 3,009,664 shares, the days-to-cover ratio is presently 2.2 days. Currently, 6.1% of the shares of the company are sold short.

Insider Activity at Builders FirstSource

In other Builders FirstSource news, Director Paul S. Levy purchased 50,000 shares of the stock in a transaction dated Friday, March 13th. The shares were bought at an average cost of $87.73 per share, with a total value of $4,386,500.00. Following the completion of the acquisition, the director owned 1,727,191 shares of the company's stock, valued at approximately $151,526,466.43. This trade represents a 2.98% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.80% of the company's stock.

Institutional Trading of Builders FirstSource

A number of hedge funds have recently bought and sold shares of the company. State Street Corp boosted its position in Builders FirstSource by 2.3% during the 4th quarter. State Street Corp now owns 5,108,120 shares of the company's stock worth $525,574,000 after acquiring an additional 115,857 shares during the period. Capital International Investors purchased a new stake in shares of Builders FirstSource in the third quarter worth approximately $429,640,000. Wellington Management Group LLP boosted its holdings in shares of Builders FirstSource by 2.3% during the fourth quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company's stock worth $341,265,000 after purchasing an additional 73,835 shares during the period. Geode Capital Management LLC grew its position in Builders FirstSource by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 2,817,958 shares of the company's stock valued at $288,789,000 after purchasing an additional 14,420 shares in the last quarter. Finally, Sands Capital Management LLC increased its stake in Builders FirstSource by 13.5% in the 4th quarter. Sands Capital Management LLC now owns 2,757,969 shares of the company's stock valued at $283,767,000 after buying an additional 327,067 shares during the period. 95.53% of the stock is owned by hedge funds and other institutional investors.

Builders FirstSource Price Performance

Shares of NYSE BLDR traded up $3.42 during trading on Tuesday, hitting $82.27. The company had a trading volume of 2,146,829 shares, compared to its average volume of 2,562,824. Builders FirstSource has a 52 week low of $78.55 and a 52 week high of $151.03. The business's 50-day moving average is $104.21 and its 200 day moving average is $111.01. The company has a market cap of $9.10 billion, a P/E ratio of 21.20, a PEG ratio of 1.90 and a beta of 1.56. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.16 and a current ratio of 1.86.

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

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. William Blair started coverage on shares of Builders FirstSource in a research note on Thursday, February 26th. They set an "outperform" rating on the stock. Benchmark decreased their price objective on shares of Builders FirstSource from $142.00 to $138.00 and set a "buy" rating for the company in a report on Friday, February 20th. DA Davidson lowered their price objective on shares of Builders FirstSource from $115.00 to $111.00 and set a "neutral" rating on the stock in a research note on Monday, February 2nd. Stephens restated an "equal weight" rating and issued a $125.00 target price on shares of Builders FirstSource in a research report on Tuesday, March 24th. Finally, Barclays decreased their price target on Builders FirstSource from $136.00 to $124.00 and set an "overweight" rating for the company in a research note on Friday, February 20th. Ten equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, Builders FirstSource currently has a consensus rating of "Hold" and an average price target of $126.65.

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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