The Goldman Sachs Group Initiates Coverage on Builders FirstSource (NYSE:BLDR)

Equities research analysts at The Goldman Sachs Group started coverage on shares of Builders FirstSource (NYSE:BLDR) in a research report issued to clients and investors on Thursday, MarketBeat Ratings reports. The brokerage set a “buy” rating and a $225.00 price target on the stock. The Goldman Sachs Group’s price objective suggests a potential upside of 16.58% from the stock’s previous close.

Several other research firms have also recently weighed in on BLDR. Jefferies Financial Group upped their price objective on Builders FirstSource from $185.00 to $223.00 and gave the stock a “buy” rating in a research report on Wednesday. Loop Capital upped their price target on Builders FirstSource from $190.00 to $230.00 and gave the stock a “buy” rating in a research report on Friday, September 20th. Zelman & Associates reaffirmed a “hold” rating on shares of Builders FirstSource in a research report on Monday, June 17th. Barclays upped their price target on Builders FirstSource from $182.00 to $211.00 and gave the stock an “overweight” rating in a research report on Wednesday. Finally, Robert W. Baird raised Builders FirstSource from a “neutral” rating to an “outperform” rating and upped their price target for the stock from $185.00 to $190.00 in a research report on Wednesday, August 7th. Four 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. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $196.38.

Builders FirstSource Price Performance

Shares of BLDR opened at $193.00 on Thursday. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.14 and a current ratio of 1.83. The firm has a market capitalization of $23.56 billion, a PE ratio of 16.52, a P/E/G ratio of 11.48 and a beta of 2.06. The stock has a 50 day simple moving average of $177.50 and a 200 day simple moving average of $170.23. Builders FirstSource has a 52-week low of $105.24 and a 52-week high of $214.70.

Builders FirstSource (NYSE:BLDR) last issued its quarterly earnings data 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. The company had revenue of $4.46 billion during the quarter, compared to the consensus estimate of $4.48 billion. Builders FirstSource had a net margin of 8.25% and a return on equity of 37.05%. The firm’s revenue was down 1.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.89 earnings per share. Sell-side analysts predict that Builders FirstSource will post 11.68 EPS for the current fiscal year.

Builders FirstSource announced that its board has authorized a share repurchase plan on Tuesday, August 6th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 5.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its shares are undervalued.

Insider Activity at Builders FirstSource

In related news, Director Craig Arthur Steinke sold 30,000 shares of the stock in a transaction on Thursday, August 8th. The stock was sold at an average price of $153.68, for a total value of $4,610,400.00. Following the sale, the director now owns 95,333 shares in the company, valued at approximately $14,650,775.44. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Builders FirstSource

A number of large investors have recently added to or reduced their stakes in BLDR. Innealta Capital LLC bought a new position in Builders FirstSource during the 2nd quarter worth $27,000. Armstrong Advisory Group Inc. bought a new position in Builders FirstSource during the 3rd quarter worth $30,000. Westside Investment Management Inc. bought a new position in Builders FirstSource during the 1st quarter worth $31,000. ORG Partners LLC bought a new position in Builders FirstSource during the 1st quarter worth $33,000. Finally, American Capital Advisory LLC bought a new position in Builders FirstSource during the 1st quarter worth $34,000. 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.