Wells Fargo & Company Has Lowered Expectations for Builders FirstSource (NYSE:BLDR) Stock Price

Key Points

• Wells Fargo cut its price target for Builders FirstSource from $120 to $87, keeping an "equal weight" rating and implying roughly a 10.3% upside from the current share price.
• Builders FirstSource missed quarterly expectations, reporting $1.12 EPS versus $1.30 expected and revenue of $3.36 billion (down 12.1% YoY); shares opened at $78.85 and were down about 3.9%.
• Analyst sentiment is mixed: MarketBeat shows a consensus "Hold" with an average price target of $124.39 and analyst ratings split (~10 buys, 10 holds, 3 sells).

Builders FirstSource (NYSE:BLDR - Get Free Report) had its target price dropped by research analysts at Wells Fargo & Company from $120.00 to $87.00 in a note issued to investors on Wednesday,MarketScreener reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target would suggest a potential upside of 10.33% from the company's current price.

A number of other research analysts also recently weighed in on the company. Benchmark cut their price target on Builders FirstSource from $142.00 to $138.00 and set a "buy" rating on the stock in a research note on Friday, February 20th. Robert W. Baird dropped their price objective on Builders FirstSource from $135.00 to $125.00 and set a "neutral" rating for the company in a report on Wednesday, February 18th. Weiss Ratings lowered Builders FirstSource from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 20th. Barclays reduced their target price on Builders FirstSource from $124.00 to $114.00 and set an "overweight" rating on the stock in a report on Wednesday. Finally, The Goldman Sachs Group decreased their target price on Builders FirstSource from $150.00 to $142.00 and set a "buy" rating for the company in a research report on Wednesday, February 18th. Ten investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Builders FirstSource currently has a consensus rating of "Hold" and an average price target of $124.39.

Builders FirstSource Stock Down 3.9%

Shares of NYSE BLDR opened at $78.85 on Wednesday. Builders FirstSource has a 1 year low of $76.50 and a 1 year high of $151.03. The firm's 50-day moving average is $99.98 and its 200-day moving average is $109.18. The company has a current ratio of 1.86, a quick ratio of 1.16 and a debt-to-equity ratio of 1.02. The firm has a market capitalization of $8.72 billion, a PE ratio of 20.32, a price-to-earnings-growth ratio of 1.91 and a beta of 1.63.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced 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). Builders FirstSource had a net margin of 2.87% and a return on equity of 17.89%. The business had revenue of $3.36 billion during the quarter, compared to analyst estimates of $3.46 billion. During the same quarter in the prior year, the company earned $2.31 earnings per share. The company's quarterly revenue was down 12.1% on a year-over-year basis. Equities analysts expect that Builders FirstSource will post 11.59 EPS for the current year.

Insider Buying and Selling

In other Builders FirstSource news, Director Paul S. Levy bought 50,000 shares of Builders FirstSource stock in a transaction on Friday, March 13th. The shares were purchased at an average cost of $87.73 per share, for a total transaction of $4,386,500.00. Following the completion of the acquisition, the director owned 1,727,191 shares in the company, valued at approximately $151,526,466.43. The trade was a 2.98% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On Builders FirstSource

A number of hedge funds have recently modified their holdings of BLDR. Daiwa Securities Group Inc. increased its position in shares of Builders FirstSource by 0.4% during the second quarter. Daiwa Securities Group Inc. now owns 17,630 shares of the company's stock worth $2,057,000 after acquiring an additional 78 shares in the last quarter. Aprio Wealth Management LLC raised its holdings in shares of Builders FirstSource by 2.7% in the 3rd quarter. Aprio Wealth Management LLC now owns 3,680 shares of the company's stock valued at $446,000 after purchasing an additional 98 shares during the period. Ramirez Asset Management Inc. lifted its stake in Builders FirstSource by 25.0% in the 3rd quarter. Ramirez Asset Management Inc. now owns 500 shares of the company's stock valued at $61,000 after purchasing an additional 100 shares during the last quarter. New Mexico Educational Retirement Board grew its holdings in Builders FirstSource by 2.0% during the fourth quarter. New Mexico Educational Retirement Board now owns 5,100 shares of the company's stock worth $525,000 after purchasing an additional 100 shares during the period. Finally, IMA Advisory Services Inc. raised its stake in Builders FirstSource by 40.9% in the third quarter. IMA Advisory Services Inc. now owns 355 shares of the company's stock valued at $43,000 after buying an additional 103 shares during the period. Institutional investors and hedge funds 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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