Builders FirstSource (NYSE:BLDR) Hits New 12-Month Low Following Analyst Downgrade

Builders FirstSource, Inc. (NYSE:BLDR)’s share price hit a new 52-week low during trading on Tuesday after Stifel Nicolaus lowered their price target on the stock from $125.00 to $118.00. Stifel Nicolaus currently has a hold rating on the stock. Builders FirstSource traded as low as $109.05 and last traded at $110.09, with a volume of 110652 shares. The stock had previously closed at $111.86.

Several other research analysts have also weighed in on the company. UBS Group reduced their target price on Builders FirstSource from $180.00 to $163.00 and set a “buy” rating on the stock in a report on Friday, May 2nd. BMO Capital Markets reduced their price objective on shares of Builders FirstSource from $146.00 to $135.00 and set a “market perform” rating for the company in a research note on Monday. Loop Capital dropped their price target on shares of Builders FirstSource from $190.00 to $170.00 and set a “buy” rating on the stock in a research report on Monday, April 14th. Benchmark reduced their target price on shares of Builders FirstSource from $200.00 to $170.00 and set a “buy” rating for the company in a report on Friday, February 21st. Finally, Royal Bank of Canada lowered their target price on Builders FirstSource from $162.00 to $132.00 and set an “outperform” rating on the stock in a research note on Friday, May 2nd. Six analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $167.58.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BLDR. IMA Advisory Services Inc. bought a new position in Builders FirstSource during the first quarter valued at about $31,000. E Fund Management Hong Kong Co. Ltd. bought a new position in shares of Builders FirstSource during the 4th quarter valued at approximately $33,000. SBI Securities Co. Ltd. bought a new stake in shares of Builders FirstSource in the 4th quarter worth approximately $34,000. Sentry Investment Management LLC purchased a new position in Builders FirstSource in the first quarter valued at approximately $40,000. Finally, CX Institutional bought a new position in Builders FirstSource during the first quarter valued at $45,000. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

Builders FirstSource Stock Down 1.0 %

The firm has a market capitalization of $12.06 billion, a PE ratio of 11.70, a P/E/G ratio of 0.80 and a beta of 1.79. The stock has a 50-day simple moving average of $122.90 and a 200-day simple moving average of $149.62. The company has a quick ratio of 1.16, a current ratio of 1.77 and a debt-to-equity ratio of 0.86.

Builders FirstSource (NYSE:BLDR) last announced its quarterly earnings data on Thursday, May 1st. The company reported $1.51 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.01. The company had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.67 billion. Builders FirstSource had a return on equity of 30.54% and a net margin of 6.57%. The firm’s revenue for the quarter was down 6.0% on a year-over-year basis. During the same quarter last year, the firm posted $2.65 EPS. Analysts forecast that Builders FirstSource, Inc. will post 11.59 EPS for the current year.

Builders FirstSource declared that its board has approved a share buyback program on Thursday, May 1st that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 3.9% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

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.