Builders FirstSource (NYSE:BLDR) Trading 10.5% Higher – Here’s What Happened

Builders FirstSource, Inc. (NYSE:BLDR) shares were up 10.5% on Wednesday . The company traded as high as $85.40 and last traded at $84.7760. Approximately 291,741 shares were traded during trading, a decline of 88% from the average session volume of 2,452,264 shares. The stock had previously closed at $76.73.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Raymond James Financial cut their price objective on shares of Builders FirstSource from $140.00 to $100.00 in a report on Friday, May 1st. Deutsche Bank Aktiengesellschaft lowered their target price on Builders FirstSource from $102.00 to $81.00 and set a “hold” rating for the company in a research note on Monday, May 4th. Barclays dropped 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. DA Davidson reduced their price target on Builders FirstSource from $111.00 to $84.00 and set a “neutral” rating for the company in a report on Friday, May 1st. Finally, Jefferies Financial Group reduced their price target on Builders FirstSource from $85.00 to $80.00 and set a “hold” rating for the company in a report on Monday, May 4th. Nine investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $101.88.

Builders FirstSource Stock Up 3.6%

The stock has a market capitalization of $9.52 billion, a P/E ratio of 33.91, a P/E/G ratio of 2.05 and a beta of 1.44. 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’s 50 day simple moving average is $78.76 and its 200 day simple moving average is $95.17.

Builders FirstSource (NYSE:BLDR) last released its earnings results on Thursday, April 30th. The company reported $0.27 earnings per share 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 during the quarter, compared to the consensus estimate of $3.17 billion. During the same period in the previous year, the firm posted $1.51 EPS. Builders FirstSource’s revenue for the quarter was down 10.1% on a year-over-year basis. As a group, research analysts predict that Builders FirstSource, Inc. will post 4.26 EPS for the current fiscal year.

Builders FirstSource declared that its Board of Directors has approved a stock repurchase program on Thursday, April 30th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to buy up to 5.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Builders FirstSource

Several large investors have recently added to or reduced their stakes in BLDR. Daiwa Securities Group Inc. raised its holdings 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 purchasing an additional 78 shares during the period. Aprio Wealth Management LLC grew its position in shares of Builders FirstSource by 2.7% during the 3rd quarter. Aprio Wealth Management LLC now owns 3,680 shares of the company’s stock valued at $446,000 after buying an additional 98 shares during the last quarter. Ramirez Asset Management Inc. grew its position in shares of Builders FirstSource by 25.0% during the 3rd quarter. Ramirez Asset Management Inc. now owns 500 shares of the company’s stock valued at $61,000 after buying an additional 100 shares during the last quarter. New Mexico Educational Retirement Board raised its stake 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 acquiring an additional 100 shares during the period. Finally, Moors & Cabot Inc. raised its stake in Builders FirstSource by 1.5% during the fourth quarter. Moors & Cabot Inc. now owns 7,388 shares of the company’s stock worth $760,000 after acquiring an additional 109 shares during the period. 95.53% of the stock is currently owned by institutional investors.

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.