Builders FirstSource, Inc. (NYSE:BLDR) Sees Significant Decrease in Short Interest

Builders FirstSource, Inc. (NYSE:BLDR) was the target of a significant decrease in short interest in November. As of November 15th, there was short interest totalling 2,280,000 shares, a decrease of 8.1% from the October 31st total of 2,480,000 shares. Based on an average daily trading volume, of 1,370,000 shares, the days-to-cover ratio is currently 1.7 days. Currently, 2.0% of the shares of the stock are sold short.

Builders FirstSource Stock Down 1.0 %

BLDR traded down $1.82 during trading on Monday, reaching $184.65. The stock had a trading volume of 727,899 shares, compared to its average volume of 1,547,255. The stock’s 50 day moving average is $185.33 and its two-hundred day moving average is $168.49. The company has a current ratio of 1.77, a quick ratio of 1.16 and a debt-to-equity ratio of 0.83. The company has a market capitalization of $21.25 billion, a price-to-earnings ratio of 18.10, a P/E/G ratio of 1.04 and a beta of 2.08. Builders FirstSource has a one year low of $130.75 and a one year high of $214.70.

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

Builders FirstSource announced that its board has approved a share repurchase program on Tuesday, August 6th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 5.3% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other Builders FirstSource 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 value of $1,784,100.00. Following the completion of the sale, the director now owns 33,083 shares in the company, valued at approximately $5,902,338.03. The trade was a 23.21 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Builders FirstSource

A number of institutional investors have recently modified their holdings of the stock. Innealta Capital LLC bought a new position in Builders FirstSource during the 2nd quarter valued at about $27,000. Brooklyn Investment Group bought a new position in Builders FirstSource during the 3rd quarter valued at about $28,000. Armstrong Advisory Group Inc. bought a new position in Builders FirstSource during the 3rd quarter valued at about $30,000. First Horizon Advisors Inc. lifted its stake in Builders FirstSource by 42.1% during the 2nd quarter. First Horizon Advisors Inc. now owns 253 shares of the company’s stock valued at $35,000 after acquiring an additional 75 shares during the period. Finally, New Millennium Group LLC bought a new position in Builders FirstSource during the 2nd quarter valued at about $38,000. 95.53% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. Benchmark lowered their price objective 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. DA Davidson boosted their price objective on Builders FirstSource from $169.00 to $175.00 and gave the company a “neutral” rating in a research report on Wednesday, November 6th. UBS Group assumed coverage on Builders FirstSource in a research report on Friday, October 25th. They issued a “buy” rating and a $232.00 price objective for the company. Royal Bank of Canada boosted their price objective on Builders FirstSource from $178.00 to $187.00 and gave the company an “outperform” rating in a research report on Wednesday, November 6th. Finally, Stifel Nicolaus decreased their target price on Builders FirstSource from $217.00 to $195.00 and set a “buy” rating for the company in a report on Thursday, August 8th. Five analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $206.47.

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.