Builders FirstSource (NYSE:BLDR) Hits New 12-Month Low – Here’s Why

Builders FirstSource, Inc. (NYSE:BLDR)’s share price hit a new 52-week low on Tuesday . The company traded as low as $67.00 and last traded at $68.2040, with a volume of 212106 shares. The stock had previously closed at $70.18.

Analysts Set New Price Targets

BLDR has been the subject of several research analyst reports. Bank of America cut their target price on shares of Builders FirstSource from $123.00 to $100.00 and set a “neutral” rating for the company in a research note on Monday, April 20th. Royal Bank Of Canada lowered their price target on Builders FirstSource from $110.00 to $107.00 and set an “outperform” rating on the stock in a research note on Friday, May 1st. The Goldman Sachs Group lowered their price target on Builders FirstSource from $110.00 to $101.00 in a research note on Friday, May 1st. Weiss Ratings lowered Builders FirstSource from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, March 20th. Finally, Truist Financial lowered their price target on Builders FirstSource from $145.00 to $115.00 and set a “buy” rating on the stock in a research note on Thursday, April 30th. Nine analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $101.88.

Builders FirstSource Trading Up 7.3%

The business’s fifty day simple moving average is $82.58 and its 200 day simple moving average is $100.71. 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 stock has a market cap of $7.66 billion, a P/E ratio of 27.28, a price-to-earnings-growth ratio of 1.59 and a beta of 1.49.

Builders FirstSource (NYSE:BLDR) last issued its earnings results on Thursday, April 30th. The company reported $0.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.12). The business had revenue of $3.29 billion during the quarter, compared to the consensus estimate of $3.17 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The firm’s revenue for the quarter was down 10.1% compared to the same quarter last year. During the same period last year, the business posted $1.51 EPS. As a group, analysts expect that Builders FirstSource, Inc. will post 4.26 EPS for the current year.

Builders FirstSource declared that its board has authorized a stock repurchase program on Thursday, April 30th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Paul S. Levy bought 50,000 shares of the company’s 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 acquisition, the director owned 1,727,191 shares of the company’s stock, valued at approximately $151,526,466.43. This represents a 2.98% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 2.70% of the company’s stock.

Institutional Trading of Builders FirstSource

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Capital International Investors bought a new position in shares of Builders FirstSource in the third quarter worth about $429,640,000. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Builders FirstSource by 99,084.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company’s stock worth $230,634,000 after acquiring an additional 2,239,301 shares during the last quarter. Franklin Resources Inc. increased its stake in shares of Builders FirstSource by 2,498.8% in the third quarter. Franklin Resources Inc. now owns 1,854,525 shares of the company’s stock valued at $224,861,000 after buying an additional 1,783,164 shares during the period. Sands Capital Management LLC increased its stake in shares of Builders FirstSource by 139.1% in the third quarter. Sands Capital Management LLC now owns 2,430,902 shares of the company’s stock valued at $294,747,000 after buying an additional 1,414,129 shares during the period. Finally, Victory Capital Management Inc. increased its stake in shares of Builders FirstSource by 235.1% in the third quarter. Victory Capital Management Inc. now owns 1,893,483 shares of the company’s stock valued at $229,585,000 after buying an additional 1,328,363 shares during the period. 95.53% of the stock is currently owned by institutional investors and hedge funds.

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.