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

Key Points

• Wells Fargo cut Builders FirstSource’s price target from $85 to $65 and maintained an “equal weight” rating, implying roughly 2.34% downside from the reported $66.56 share price.
• Analyst sentiment is mixed, with nine Buy, twelve Hold and two Sell ratings; the consensus target remains $94.69, well above the current price.
• Recent operating results were weaker than expected: quarterly EPS came in at $1.17 versus $1.25 expected, revenue was $3.86 billion versus $3.91 billion expected, and revenue declined 8.8% year over year.

Builders FirstSource (NYSE:BLDR - Get Free Report) had its price target dropped by equities researchers at Wells Fargo & Company from $85.00 to $65.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's target price suggests a potential downside of 2.34% from the stock's current price.

Other equities research analysts also recently issued research reports about the company. Stephens decreased their price objective on Builders FirstSource from $125.00 to $100.00 and set an "equal weight" rating for the company in a report on Monday, April 27th. Zacks Research upgraded Builders FirstSource from a "strong sell" rating to a "hold" rating in a report on Friday, July 3rd. Royal Bank Of Canada reduced their price target on shares of Builders FirstSource from $110.00 to $107.00 and set an "outperform" rating for the company in a research report on Friday, May 1st. Stifel Nicolaus decreased their price target on shares of Builders FirstSource from $76.00 to $70.00 and set a "hold" rating for the company in a research note on Thursday, July 23rd. Finally, The Goldman Sachs Group lowered their price objective on shares of Builders FirstSource from $110.00 to $101.00 in a report on Friday, May 1st. Nine research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Builders FirstSource presently has an average rating of "Hold" and an average target price of $94.69.

Builders FirstSource Stock Up 0.8%

Shares of BLDR traded up $0.55 during trading hours on Friday, hitting $66.56. The stock had a trading volume of 598,852 shares, compared to its average volume of 2,445,342. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.09. The firm has a 50 day simple moving average of $77.08 and a 200-day simple moving average of $90.01. The firm has a market capitalization of $7.16 billion, a P/E ratio of 25.50, a price-to-earnings-growth ratio of 1.67 and a beta of 1.42. Builders FirstSource has a 1-year low of $65.10 and a 1-year high of $151.03.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.17 EPS for the quarter, missing analysts' consensus estimates of $1.25 by ($0.08). The firm had revenue of $3.86 billion during the quarter, compared to the consensus estimate of $3.91 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The business's quarterly revenue was down 8.8% on a year-over-year basis. During the same period in the previous year, the firm earned $2.38 earnings per share. Sell-side analysts predict that Builders FirstSource will post 4.16 EPS for the current fiscal year.

Builders FirstSource announced that its Board of Directors has approved a stock repurchase program on Thursday, April 30th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to purchase up to 5.4% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. State Street Corp lifted its stake in Builders FirstSource by 2.3% during the 4th quarter. State Street Corp now owns 5,108,120 shares of the company's stock valued at $525,574,000 after acquiring an additional 115,857 shares in the last quarter. Wellington Management Group LLP grew its stake in shares of Builders FirstSource by 2.3% in the 4th quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company's stock worth $341,265,000 after acquiring an additional 73,835 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Builders FirstSource by 12.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,967,744 shares of the company's stock valued at $244,301,000 after purchasing an additional 325,935 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Builders FirstSource by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 2,817,958 shares of the company's stock valued at $288,789,000 after purchasing an additional 14,420 shares during the last quarter. Finally, Sands Capital Management LLC raised its holdings in shares of Builders FirstSource by 13.5% in the fourth quarter. Sands Capital Management LLC now owns 2,757,969 shares of the company's stock valued at $283,767,000 after purchasing an additional 327,067 shares during the last quarter. Hedge funds and other institutional investors own 95.53% of the company's stock.

Builders FirstSource News Roundup

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Truist Financial lowered its price target from $115 to $90 but maintained a Buy rating, implying substantial potential upside from current levels. The revised target reflects a more cautious outlook while still indicating confidence in a longer-term recovery. Benzinga
• Positive Sentiment: An insider reportedly purchased 50,000 BLDR shares, an investment that may signal confidence that the recent selloff has created value. Quiver Quantitative analysis
• Neutral Sentiment: Analyst sentiment remains mixed but not broadly bearish: BMO Capital Markets and Stifel Nicolaus maintained Hold ratings, while Truist retained its Buy recommendation. BMO Capital Markets report
• Negative Sentiment: BLDR’s second-quarter results missed expectations, with earnings of $1.17 per share versus the $1.25 consensus and revenue of $3.86 billion versus $3.91 billion expected. Revenue declined 8.8% year over year, while EPS fell from $2.38 a year earlier. Builders FirstSource earnings report
• Negative Sentiment: Management issued fiscal 2026 revenue guidance of $14.0 billion to $14.8 billion, below the $14.8 billion analyst consensus at the midpoint-to-low end, reinforcing concerns about slowing demand. Zacks earnings outlook
• Negative Sentiment: Softening single-family housing starts and building permits are weighing on expectations for construction-material suppliers. Investors are also concerned that the housing recovery may be delayed, pressuring sales and profitability. Housing and earnings analysis

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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