Stifel Nicolaus Lowers Builders FirstSource (NYSE:BLDR) Price Target to $70.00

Key Points

• Stifel Nicolaus cut its price target on Builders FirstSource from $76 to $70 and kept a Hold rating, implying only modest downside from the prior close.
• The broader analyst view remains cautious: the stock carries an average Hold rating with a consensus price target of $100.35, though several firms have recently lowered their targets.
• Builders FirstSource shares were trading around $70.50, near the new target and well below the 50-day and 200-day moving averages; the company also recently authorized a $500 million share buyback.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its target price cut by equities researchers at Stifel Nicolaus from $76.00 to $70.00 in a report issued on Thursday,Benzinga reports. The firm presently has a "hold" rating on the stock. Stifel Nicolaus' price target points to a potential downside of 0.71% from the stock's previous close.

Several other brokerages have also recently weighed in on BLDR. KeyCorp decreased their target price on Builders FirstSource from $100.00 to $91.00 and set an "overweight" rating for the company in a research note on Monday, July 13th. Zacks Research upgraded shares of Builders FirstSource from a "strong sell" rating to a "hold" rating in a research note on Friday, July 3rd. Robert W. Baird lowered their price objective on Builders FirstSource from $125.00 to $95.00 in a report on Friday, May 1st. Truist Financial decreased their price target on shares of Builders FirstSource from $145.00 to $115.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Finally, Barclays decreased their target price on Builders FirstSource from $114.00 to $93.00 and set an "overweight" rating on the stock in a research report on Friday, May 1st. Eight equities research 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. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $100.35.

Builders FirstSource Trading Down 0.7%

Shares of BLDR stock opened at $70.50 on Thursday. The company has a current ratio of 1.76, a quick ratio of 1.09 and a debt-to-equity ratio of 1.15. The company has a market capitalization of $7.58 billion, a P/E ratio of 26.81, a price-to-earnings-growth ratio of 1.66 and a beta of 1.42. The business's 50 day moving average is $77.12 and its two-hundred day moving average is $91.71. Builders FirstSource has a twelve month low of $65.10 and a twelve month high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $0.27 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.12). Builders FirstSource had a return on equity of 14.89% and a net margin of 1.97%.The company had revenue of $3.29 billion for the quarter, compared to analysts' expectations of $3.17 billion. During the same quarter in the previous year, the firm posted $1.51 earnings per share. Builders FirstSource's revenue for the quarter was down 10.1% on a year-over-year basis. Equities analysts forecast that Builders FirstSource will post 4.29 EPS for the current year.

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

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Cromwell Holdings LLC raised its holdings in shares of Builders FirstSource by 1,323.5% during the 4th quarter. Cromwell Holdings LLC now owns 242 shares of the company's stock worth $25,000 after buying an additional 225 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in shares of Builders FirstSource by 167.1% in the third quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock worth $26,000 after acquiring an additional 132 shares during the period. Sunbelt Securities Inc. raised its stake in Builders FirstSource by 508.5% during the first quarter. Sunbelt Securities Inc. now owns 359 shares of the company's stock worth $30,000 after buying an additional 300 shares during the last quarter. Root Financial Partners LLC grew its stake in Builders FirstSource by 43.6% during the first quarter. Root Financial Partners LLC now owns 372 shares of the company's stock worth $31,000 after purchasing an additional 113 shares during the period. Finally, Transamerica Financial Advisors LLC boosted its stake in Builders FirstSource by 90.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock worth $38,000 after acquiring an additional 175 shares in 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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