Builders FirstSource (NYSE:BLDR) Trading Down 4.6% – Time to Sell?

Shares of Builders FirstSource, Inc. (NYSE:BLDR) fell 4.6% during mid-day trading on Wednesday . The company traded as low as $73.06 and last traded at $71.6210. 78,373 shares changed hands during mid-day trading, a decline of 97% from the average session volume of 2,433,148 shares. The stock had previously closed at $75.10.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on BLDR. Stifel Nicolaus decreased their price target on Builders FirstSource from $76.00 to $70.00 and set a “hold” rating for the company in a research note on Thursday, July 23rd. Deutsche Bank Aktiengesellschaft set a $66.00 price target on shares of Builders FirstSource in a research report on Friday, July 31st. Oppenheimer lowered their price objective on Builders FirstSource from $110.00 to $90.00 and set an “outperform” rating on the stock in a research report on Friday, July 31st. The Goldman Sachs Group lowered their target price on shares of Builders FirstSource from $110.00 to $101.00 in a research note on Friday, May 1st. Finally, Benchmark reduced their price target on shares of Builders FirstSource from $105.00 to $100.00 and set a “buy” rating on the stock in a research report on Thursday, July 23rd. Nine investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $90.35.

Builders FirstSource Stock Performance

The firm has a market cap of $7.90 billion, a P/E ratio of 80.72, a PEG ratio of 2.35 and a beta of 1.44. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.09 and a current ratio of 1.79. The stock’s 50-day moving average is $76.61 and its 200 day moving average is $86.31.

Builders FirstSource (NYSE:BLDR) last issued its quarterly earnings data on Thursday, July 30th. The company reported $1.17 EPS for the quarter, missing analysts’ consensus estimates of $1.25 by ($0.08). The company had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.91 billion. Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%.The company’s revenue was down 8.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.38 earnings per share. On average, research analysts predict that Builders FirstSource, Inc. will post 3.15 earnings per share for the current year.

Builders FirstSource declared that its board has approved a share repurchase program on Thursday, April 30th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Builders FirstSource

Several institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new position in Builders FirstSource during the 2nd quarter worth $700,934,000. Northwestern Mutual Wealth Management Co. boosted its position in 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 valued at $230,634,000 after buying an additional 2,239,301 shares in the last quarter. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in shares of Builders FirstSource during the 2nd quarter valued at $134,908,000. Norges Bank acquired a new stake in shares of Builders FirstSource during the fourth quarter valued at about $109,269,000. Finally, Boston Partners grew its holdings in Builders FirstSource by 73.0% during the 3rd quarter. Boston Partners now owns 1,852,292 shares of the company’s stock worth $224,627,000 after acquiring an additional 781,506 shares during the last quarter. Institutional investors and hedge funds own 95.53% of the company’s stock.

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.