Stephens Issues Pessimistic Forecast for Builders FirstSource (NYSE:BLDR) Stock Price

Key Points

• Stephens cut its price target on Builders FirstSource from $125 to $100 and kept an "equal weight" rating, joining several other brokers that have trimmed targets; the consensus analyst rating is "Hold" with an average price target of $117.62.
• The company missed recent quarterly expectations, reporting EPS of $1.12 versus $1.30 expected and revenue of $3.36 billion (down 12.1% year‑over‑year), signaling weakening near‑term fundamentals.
• Insider Director Paul S. Levy purchased 50,000 shares at ~$87.73, while insiders own 2.70% and institutional investors control about 95.53% of the stock, indicating significant institutional ownership despite analyst caution.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price objective reduced by Stephens from $125.00 to $100.00 in a note issued to investors on Monday,MarketScreener reports. The brokerage presently has an "equal weight" rating on the stock. Stephens' price objective would indicate a potential upside of 10.76% from the stock's previous close.

BLDR has been the subject of a number of other research reports. Jefferies Financial Group dropped their price objective on Builders FirstSource from $110.00 to $85.00 and set a "hold" rating for the company in a report on Monday, April 13th. DA Davidson decreased their target price on Builders FirstSource from $115.00 to $111.00 and set a "neutral" rating for the company in a research report on Monday, February 2nd. Robert W. Baird reduced their price target on shares of Builders FirstSource from $135.00 to $125.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 18th. Weiss Ratings cut shares of Builders FirstSource from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, March 20th. Finally, BMO Capital Markets dropped their price target on Builders FirstSource from $120.00 to $100.00 and set a "market perform" rating on the stock in a research report on Monday, April 20th. Nine investment 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, the stock currently has an average rating of "Hold" and a consensus price target of $117.62.

Builders FirstSource Stock Performance

Shares of NYSE BLDR opened at $90.28 on Monday. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.86 and a quick ratio of 1.16. The firm has a fifty day moving average price of $91.52 and a 200-day moving average price of $105.89. The stock has a market cap of $9.99 billion, a PE ratio of 23.22, a price-to-earnings-growth ratio of 2.71 and a beta of 1.63. Builders FirstSource has a 1 year low of $76.50 and a 1 year high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its quarterly earnings data 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 return on equity of 17.89% and a net margin of 2.87%.The firm had revenue of $3.36 billion for the quarter, compared to analysts' expectations of $3.46 billion. During the same period last year, the company earned $2.31 earnings per share. The firm's revenue was down 12.1% on a year-over-year basis. Equities analysts anticipate that Builders FirstSource will post 5.58 earnings per share for the current fiscal year.

Insider Activity

In other Builders FirstSource news, Director Paul S. Levy acquired 50,000 shares of the firm's 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 in the company, valued at approximately $151,526,466.43. This trade represents a 2.98% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 2.70% of the company's stock.

Hedge Funds Weigh In On Builders FirstSource

Several hedge funds and other institutional investors have recently modified their holdings of BLDR. Capital International Investors acquired a new stake in shares of Builders FirstSource during the third quarter worth $429,640,000. Northwestern Mutual Wealth Management Co. increased its holdings in Builders FirstSource by 99,084.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company's stock worth $230,634,000 after buying an additional 2,239,301 shares during the period. Franklin Resources Inc. raised its position in Builders FirstSource by 2,498.8% during the 3rd quarter. Franklin Resources Inc. now owns 1,854,525 shares of the company's stock worth $224,861,000 after buying an additional 1,783,164 shares during the last quarter. Sands Capital Management LLC lifted its stake in Builders FirstSource by 139.1% during the 3rd quarter. Sands Capital Management LLC now owns 2,430,902 shares of the company's stock valued at $294,747,000 after acquiring an additional 1,414,129 shares during the period. Finally, Victory Capital Management Inc. increased its stake in shares of Builders FirstSource by 235.1% in the third quarter. Victory Capital Management Inc. now owns 1,893,483 shares of the company's stock worth $229,585,000 after acquiring an additional 1,328,363 shares during the period. 95.53% of the stock is owned by hedge funds and other institutional investors.

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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