StockNews.com Downgrades Builders FirstSource (NYSE:BLDR) to Hold

Builders FirstSource (NYSE:BLDR) was downgraded by research analysts at StockNews.com from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

A number of other analysts have also commented on the stock. Stifel Nicolaus lowered their target price on shares of Builders FirstSource from $217.00 to $195.00 and set a “buy” rating for the company in a report on Thursday, August 8th. Oppenheimer reissued an “outperform” rating and set a $225.00 price target on shares of Builders FirstSource in a research report on Tuesday, October 29th. Robert W. Baird lifted their price target on shares of Builders FirstSource from $190.00 to $222.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 16th. B. Riley reduced their price target on shares of Builders FirstSource from $197.00 to $187.00 and set a “buy” rating on the stock in a research report on Wednesday, August 7th. Finally, Benchmark reduced their price target on shares of Builders FirstSource from $220.00 to $200.00 and set a “buy” rating on the stock in a research report on Wednesday, August 7th. Five analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Builders FirstSource has a consensus rating of “Moderate Buy” and an average price target of $206.47.

Builders FirstSource Stock Performance

Shares of Builders FirstSource stock opened at $183.59 on Tuesday. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.77 and a quick ratio of 1.14. The firm has a market cap of $21.13 billion, a P/E ratio of 17.93, a P/E/G ratio of 0.99 and a beta of 2.08. The firm has a 50 day simple moving average of $184.98 and a 200 day simple moving average of $168.25. Builders FirstSource has a fifty-two week low of $121.43 and a fifty-two week high of $214.70.

Builders FirstSource (NYSE:BLDR) last issued its quarterly earnings results on Tuesday, November 5th. The company reported $3.07 earnings per share for the quarter, missing analysts’ consensus estimates of $3.09 by ($0.02). The company had revenue of $4.23 billion during the quarter, compared to analyst estimates of $4.44 billion. Builders FirstSource had a net margin of 7.40% and a return on equity of 33.55%. The business’s revenue for the quarter was down 6.7% on a year-over-year basis. During the same period in the prior year, the business earned $4.24 EPS. Sell-side analysts predict that Builders FirstSource will post 11.56 earnings per share for the current fiscal year.

Builders FirstSource declared that its Board of Directors has approved a share buyback plan on Tuesday, August 6th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 5.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Insider Activity at Builders FirstSource

In related news, Director Cleveland A. Christophe sold 10,000 shares of the company’s stock in a transaction dated Thursday, November 7th. The shares were sold at an average price of $178.41, for a total value of $1,784,100.00. Following the transaction, the director now owns 33,083 shares in the company, valued at approximately $5,902,338.03. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in BLDR. Innealta Capital LLC bought a new stake in shares of Builders FirstSource during the 2nd quarter worth approximately $27,000. Armstrong Advisory Group Inc. bought a new position in Builders FirstSource in the 3rd quarter valued at approximately $30,000. First Horizon Advisors Inc. lifted its stake in Builders FirstSource by 42.1% in the 2nd quarter. First Horizon Advisors Inc. now owns 253 shares of the company’s stock valued at $35,000 after purchasing an additional 75 shares during the last quarter. New Millennium Group LLC bought a new position in Builders FirstSource in the 2nd quarter valued at approximately $38,000. Finally, Reston Wealth Management LLC bought a new position in Builders FirstSource in the 3rd quarter valued at approximately $39,000. Institutional investors and hedge funds own 95.53% of the company’s stock.

About Builders FirstSource

Builders FirstSource, Inc, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.