The Goldman Sachs Group Has Lowered Expectations for Builders FirstSource (NYSE:BLDR) Stock Price

Key Points

• Goldman Sachs cut its price target on Builders FirstSource to $110 from $142 while maintaining a "buy" rating, implying roughly a 29% upside from the stock's current price.
• Builders FirstSource recently missed earnings and revenue expectations (EPS $1.12 vs. $1.30 expected; revenue $3.36B vs. $3.46B expected) and reported a 12.1% year-over-year revenue decline.
• Director Paul S. Levy bought 50,000 shares (~$4.39M at $87.73), increasing his stake by about 2.98%, signaling insider confidence despite mixed analyst sentiment and target cuts.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its target price lowered by The Goldman Sachs Group from $142.00 to $110.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The brokerage currently has a "buy" rating on the stock. The Goldman Sachs Group's price objective points to a potential upside of 29.12% from the stock's current price.

A number of other analysts also recently issued reports on BLDR. Barclays decreased their target price on Builders FirstSource from $124.00 to $114.00 and set an "overweight" rating for the company in a research report on Wednesday. Royal Bank Of Canada raised shares of Builders FirstSource from a "sector perform" rating to an "outperform" rating and set a $119.00 price objective on the stock in a report on Thursday, March 5th. William Blair initiated coverage on shares of Builders FirstSource in a research note on Thursday, February 26th. They issued an "outperform" rating for the company. Robert W. Baird dropped 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. Finally, Jefferies Financial Group reduced their price objective on shares of Builders FirstSource from $112.00 to $110.00 and set a "hold" rating for the company in a research note on Monday, February 23rd. Ten analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $122.71.

Builders FirstSource Stock Up 2.5%

BLDR stock opened at $85.20 on Friday. Builders FirstSource has a fifty-two week low of $76.50 and a fifty-two week high of $151.03. The stock's 50 day simple moving average is $98.70 and its 200 day simple moving average is $108.83. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.16 and a current ratio of 1.86. The company has a market cap of $9.42 billion, a P/E ratio of 21.96, a price-to-earnings-growth ratio of 2.07 and a beta of 1.63.

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

Insider Activity at Builders FirstSource

In other news, Director Paul S. Levy purchased 50,000 shares of the firm's stock in a transaction dated Friday, March 13th. The shares were purchased at an average price 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 in the company, valued at $151,526,466.43. This trade represents a 2.98% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. 2.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Builders FirstSource

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BLDR. Cromwell Holdings LLC boosted its position 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 valued at $25,000 after acquiring an additional 225 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its position in Builders FirstSource by 167.1% during the third quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company's stock valued at $26,000 after purchasing an additional 132 shares during the last quarter. TD Waterhouse Canada Inc. purchased a new position in Builders FirstSource in the 3rd quarter worth approximately $34,000. Transamerica Financial Advisors LLC increased its holdings in shares of Builders FirstSource by 90.2% in the 4th quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company's stock worth $38,000 after buying an additional 175 shares during the last quarter. Finally, CYBER HORNET ETFs LLC bought a new position in shares of Builders FirstSource in the 2nd quarter worth $38,000. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

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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