Stifel Nicolaus Forecasts Strong Price Appreciation for Builders FirstSource (NYSE:BLDR) Stock

Key Points

• Stifel Nicolaus raised the target price for Builders FirstSource (NYSE:BLDR) from $118.00 to $128.00, indicating a potential downside of 0.22% from the company's last close and maintaining a "hold" rating on the stock.
• Despite a range of ratings from various research firms, Builders FirstSource has an average rating of "Moderate Buy" and an average target price of $158.79 according to MarketBeat.com.
• The company recently authorized a $500 million stock buyback plan, which is typically seen as a sign that the board believes the stock is undervalued.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its target price raised by stock analysts at Stifel Nicolaus from $118.00 to $128.00 in a report released on Friday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. Stifel Nicolaus' price target indicates a potential downside of 0.22% from the company's previous close.

Several other research firms have also commented on BLDR. Zelman & Associates reaffirmed an "underperform" rating on shares of Builders FirstSource in a report on Friday, July 18th. Raymond James Financial reissued an "outperform" rating and set a $140.00 price target (down from $170.00) on shares of Builders FirstSource in a research report on Friday, May 2nd. UBS Group reduced their price objective on shares of Builders FirstSource from $180.00 to $163.00 and set a "buy" rating for the company in a research note on Friday, May 2nd. Wedbush reduced their price objective on shares of Builders FirstSource from $190.00 to $145.00 and set an "outperform" rating for the company in a research note on Friday, June 20th. Finally, BMO Capital Markets reduced their price objective on shares of Builders FirstSource from $146.00 to $135.00 and set a "market perform" rating for the company in a research note on Monday, May 5th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, Builders FirstSource presently has an average rating of "Moderate Buy" and an average target price of $158.79.

Builders FirstSource Stock Up 0.9%

BLDR stock traded up $1.15 during trading on Friday, reaching $128.28. The stock had a trading volume of 1,302,369 shares, compared to its average volume of 1,936,507. Builders FirstSource has a one year low of $102.60 and a one year high of $203.14. The company has a quick ratio of 1.07, a current ratio of 1.82 and a debt-to-equity ratio of 1.02. The company's 50 day moving average is $120.07 and its two-hundred day moving average is $129.26. The company has a market capitalization of $14.18 billion, a price-to-earnings ratio of 16.55, a P/E/G ratio of 11.53 and a beta of 1.69.

Builders FirstSource (NYSE:BLDR - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $2.38 earnings per share for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. The firm had revenue of $4.23 billion for the quarter, compared to analysts' expectations of $4.29 billion. Builders FirstSource had a net margin of 5.66% and a return on equity of 28.02%. The company's quarterly revenue was down 5.0% on a year-over-year basis. During the same period in the previous year, the company earned $3.50 earnings per share. Equities research analysts forecast that Builders FirstSource will post 11.59 EPS for the current year.

Builders FirstSource announced that its Board of Directors has authorized a stock repurchase plan on Thursday, May 1st that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to buy up to 3.9% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Builders FirstSource

In other news, Director Paul S. Levy acquired 283,517 shares of the company's stock in a transaction dated Thursday, May 8th. The shares were bought at an average price of $111.21 per share, with a total value of $31,529,925.57. Following the purchase, the director owned 1,672,687 shares of the company's stock, valued at approximately $186,019,521.27. This represents a 20.41% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Dirkson R. Charles acquired 5,000 shares of the company's stock in a transaction dated Tuesday, May 27th. The stock was purchased at an average cost of $109.67 per share, for a total transaction of $548,350.00. Following the purchase, the director directly owned 5,000 shares in the company, valued at approximately $548,350. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. Insiders have acquired a total of 505,000 shares of company stock worth $56,032,120 in the last ninety days. 2.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Builders FirstSource

A number of hedge funds and other institutional investors have recently bought and sold shares of BLDR. Brave Warrior Advisors LLC bought a new position in shares of Builders FirstSource in the 1st quarter worth $155,123,000. Wellington Management Group LLP raised its stake in shares of Builders FirstSource by 42.6% in the 1st quarter. Wellington Management Group LLP now owns 3,217,125 shares of the company's stock valued at $401,948,000 after purchasing an additional 960,603 shares during the period. Voya Investment Management LLC increased its position in shares of Builders FirstSource by 174.2% in the fourth quarter. Voya Investment Management LLC now owns 1,416,280 shares of the company's stock valued at $202,374,000 after acquiring an additional 899,841 shares during the last quarter. FMR LLC increased its position in shares of Builders FirstSource by 7.3% in the fourth quarter. FMR LLC now owns 10,898,366 shares of the company's stock valued at $1,557,703,000 after acquiring an additional 740,214 shares during the last quarter. Finally, Kovitz Investment Group Partners LLC increased its position in shares of Builders FirstSource by 957.1% in the first quarter. Kovitz Investment Group Partners LLC now owns 528,984 shares of the company's stock valued at $66,091,000 after acquiring an additional 478,942 shares during the last quarter. 95.53% of the stock is owned by institutional investors and hedge funds.

About Builders FirstSource

Builders FirstSource, Inc, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.

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