Builders FirstSource, Inc. (NYSE:BLDR) Receives $181.57 Average Price Target from Brokerages

Builders FirstSource, Inc. (NYSE:BLDR) has been assigned an average recommendation of “Moderate Buy” from the sixteen research firms that are currently covering the firm, MarketBeat Ratings reports. Five analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $181.57.

BLDR has been the topic of several recent analyst reports. StockNews.com downgraded Builders FirstSource from a “buy” rating to a “hold” rating in a research note on Monday, July 22nd. Stifel Nicolaus reduced their price objective on Builders FirstSource from $217.00 to $195.00 and set a “buy” rating for the company in a report on Thursday, August 8th. Barclays decreased their target price on Builders FirstSource from $188.00 to $182.00 and set an “overweight” rating for the company in a research report on Wednesday, August 7th. Zelman & Associates reaffirmed a “hold” rating on shares of Builders FirstSource in a report on Monday, June 17th. Finally, Benchmark decreased their price objective on shares of Builders FirstSource from $220.00 to $200.00 and set a “buy” rating for the company in a report on Wednesday, August 7th.

Builders FirstSource Price Performance

Shares of BLDR opened at $175.89 on Tuesday. Builders FirstSource has a fifty-two week low of $105.24 and a fifty-two week high of $214.70. The firm’s 50-day simple moving average is $160.51 and its two-hundred day simple moving average is $171.12. The stock has a market cap of $21.47 billion, a PE ratio of 15.06, a price-to-earnings-growth ratio of 9.76 and a beta of 2.06. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.14 and a current ratio of 1.83.

Builders FirstSource (NYSE:BLDR) last issued its earnings results on Tuesday, August 6th. The company reported $3.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.02 by $0.48. Builders FirstSource had a net margin of 8.25% and a return on equity of 37.05%. The business had revenue of $4.46 billion during the quarter, compared to analysts’ expectations of $4.48 billion. During the same period in the previous year, the company earned $3.89 earnings per share. The business’s revenue for the quarter was down 1.6% compared to the same quarter last year. Analysts anticipate that Builders FirstSource will post 11.91 earnings per share for the current fiscal year.

Builders FirstSource announced that its board has initiated a stock buyback plan on Tuesday, August 6th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to buy up to 5.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Craig Arthur Steinke sold 30,000 shares of the business’s stock in a transaction that occurred on Thursday, August 8th. The stock was sold at an average price of $153.68, for a total transaction of $4,610,400.00. Following the completion of the transaction, the director now directly owns 95,333 shares in the company, valued at approximately $14,650,775.44. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Company insiders own 1.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Sanctuary Advisors LLC purchased a new position in shares of Builders FirstSource in the second quarter valued at about $4,859,000. Clearbridge Investments LLC bought a new stake in Builders FirstSource during the 2nd quarter valued at approximately $49,000,000. New Century Financial Group LLC purchased a new position in Builders FirstSource in the 2nd quarter worth approximately $241,000. 3Chopt Investment Partners LLC bought a new position in Builders FirstSource in the 2nd quarter worth approximately $441,000. Finally, B. Riley Wealth Advisors Inc. purchased a new stake in Builders FirstSource during the 2nd quarter valued at approximately $383,000. Institutional investors 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.