Builders FirstSource (NYSE:BLDR) Stock Price Down 4% on Analyst Downgrade

Shares of Builders FirstSource, Inc. (NYSE:BLDR) dropped 4% on Tuesday after Wedbush lowered their price target on the stock from $215.00 to $175.00. Wedbush currently has an outperform rating on the stock. Builders FirstSource traded as low as $136.35 and last traded at $136.59. Approximately 384,302 shares changed hands during trading, a decline of 75% from the average daily volume of 1,535,307 shares. The stock had previously closed at $142.22.

Other research analysts have also recently issued research reports about the stock. StockNews.com cut shares of Builders FirstSource from a “buy” rating to a “hold” rating in a research report on Friday, June 21st. Zelman & Associates reaffirmed a “hold” rating on shares of Builders FirstSource in a research report on Monday, June 17th. Barclays decreased their target price on shares of Builders FirstSource from $240.00 to $200.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 8th. Jefferies Financial Group upped their target price on shares of Builders FirstSource from $226.00 to $237.00 and gave the company a “buy” rating in a research report on Thursday, April 18th. Finally, DA Davidson reaffirmed a “neutral” rating and issued a $185.00 target price on shares of Builders FirstSource in a research report on Thursday, March 28th. Six analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $192.47.

Insider Buying and Selling

In related news, insider Michael Hiller sold 4,875 shares of the company’s stock in a transaction that occurred on Thursday, May 30th. The shares were sold at an average price of $159.25, for a total transaction of $776,343.75. Following the sale, the insider now directly owns 30,106 shares in the company, valued at $4,794,380.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In related news, insider Paul M. Mccrobie sold 9,118 shares of the company’s stock in a transaction that occurred on Friday, May 24th. The shares were sold at an average price of $170.11, for a total transaction of $1,551,062.98. Following the sale, the insider now directly owns 22,667 shares in the company, valued at $3,855,883.37. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Michael Hiller sold 4,875 shares of the company’s stock in a transaction that occurred on Thursday, May 30th. The stock was sold at an average price of $159.25, for a total transaction of $776,343.75. Following the sale, the insider now owns 30,106 shares in the company, valued at $4,794,380.50. The disclosure for this sale can be found here. Insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Builders FirstSource

Hedge funds have recently added to or reduced their stakes in the stock. EdgeRock Capital LLC purchased a new position in Builders FirstSource in the fourth quarter valued at approximately $25,000. Contravisory Investment Management Inc. purchased a new position in Builders FirstSource in the fourth quarter valued at approximately $28,000. Rakuten Securities Inc. purchased a new position in Builders FirstSource in the fourth quarter valued at approximately $29,000. Raleigh Capital Management Inc. increased its stake in Builders FirstSource by 134.0% in the third quarter. Raleigh Capital Management Inc. now owns 248 shares of the company’s stock valued at $31,000 after purchasing an additional 142 shares during the last quarter. Finally, Westside Investment Management Inc. purchased a new position in Builders FirstSource in the first quarter valued at approximately $31,000. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

Builders FirstSource Price Performance

The company has a market capitalization of $16.66 billion, a PE ratio of 11.69, a price-to-earnings-growth ratio of 2.30 and a beta of 2.08. The company has a debt-to-equity ratio of 0.75, a current ratio of 2.21 and a quick ratio of 1.45. The company’s 50 day simple moving average is $165.14 and its 200 day simple moving average is $176.41.

Builders FirstSource (NYSE:BLDR) last posted its quarterly earnings data on Tuesday, May 7th. The company reported $2.65 earnings per share for the quarter, beating the consensus estimate of $2.42 by $0.23. The business had revenue of $3.89 billion during the quarter, compared to the consensus estimate of $3.83 billion. Builders FirstSource had a return on equity of 38.66% and a net margin of 8.57%. The company’s revenue was up .2% compared to the same quarter last year. During the same period in the prior year, the company earned $2.96 earnings per share. As a group, sell-side analysts predict that Builders FirstSource, Inc. will post 12.93 earnings per share for the current year.

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.