Builders FirstSource (NYSE:BLDR) Downgraded to “Hold” Rating by StockNews.com

StockNews.com lowered shares of Builders FirstSource (NYSE:BLDR) from a buy rating to a hold rating in a research report report published on Tuesday.

Other equities analysts have also issued research reports about the stock. Barclays increased their price objective on shares of Builders FirstSource from $182.00 to $211.00 and gave the company an “overweight” rating in a research report on Wednesday, October 9th. Benchmark dropped their price target on Builders FirstSource from $220.00 to $200.00 and set a “buy” rating for the company in a research report on Wednesday, August 7th. Jefferies Financial Group boosted their price objective on Builders FirstSource from $185.00 to $223.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. UBS Group assumed coverage on Builders FirstSource in a research note on Friday, October 25th. They issued a “buy” rating and a $232.00 price objective for the company. Finally, Stifel Nicolaus cut their target price on Builders FirstSource from $217.00 to $195.00 and set a “buy” rating on the stock in a research report on Thursday, August 8th. Five investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $206.47.

Builders FirstSource Price Performance

NYSE:BLDR opened at $180.80 on Tuesday. The business’s 50-day simple moving average is $185.68 and its two-hundred day simple moving average is $168.35. Builders FirstSource has a 52 week low of $129.80 and a 52 week high of $214.70. The stock has a market cap of $20.81 billion, a PE ratio of 17.70, a P/E/G ratio of 1.00 and a beta of 2.08. The company has a quick ratio of 1.16, a current ratio of 1.77 and a debt-to-equity ratio of 0.83.

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

Builders FirstSource announced that its Board of Directors has initiated a share buyback program on Tuesday, August 6th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 5.3% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Cleveland A. Christophe sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $178.41, for a total transaction of $1,784,100.00. Following the completion of the sale, the director now owns 33,083 shares in the company, valued at $5,902,338.03. The trade was a 23.21 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.80% of the stock is owned by insiders.

Institutional Trading of Builders FirstSource

A number of large investors have recently made changes to their positions in BLDR. Innealta Capital LLC acquired a new stake in shares of Builders FirstSource in the 2nd quarter worth $27,000. Brooklyn Investment Group acquired a new stake in Builders FirstSource in the third quarter valued at about $28,000. Armstrong Advisory Group Inc. purchased a new stake in Builders FirstSource in the 3rd quarter valued at approximately $30,000. First Horizon Advisors Inc. increased its position in Builders FirstSource by 42.1% during the 2nd quarter. First Horizon Advisors Inc. now owns 253 shares of the company’s stock worth $35,000 after purchasing an additional 75 shares during the period. Finally, New Millennium Group LLC purchased a new position in shares of Builders FirstSource during the 2nd quarter worth approximately $38,000. 95.53% of the stock is owned by institutional investors and hedge funds.

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.