Builders FirstSource (NYSE:BLDR) Rating Lowered to Strong Sell at Zacks Research

Builders FirstSource (NYSE:BLDR) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the stock. Wolfe Research raised shares of Builders FirstSource to a “hold” rating in a research note on Thursday, May 14th. Jefferies Financial Group lowered their target price on shares of Builders FirstSource from $85.00 to $80.00 and set a “hold” rating on the stock in a research note on Monday, May 4th. Robert W. Baird set a $75.00 price target on shares of Builders FirstSource in a report on Friday. Weiss Ratings cut shares of Builders FirstSource from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday, July 21st. Finally, Truist Financial lowered their price objective on Builders FirstSource from $115.00 to $90.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Nine research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, Builders FirstSource has a consensus rating of “Hold” and an average target price of $90.59.

Builders FirstSource Stock Up 4.0%

BLDR stock opened at $75.40 on Monday. The company has a quick ratio of 1.09, a current ratio of 1.79 and a debt-to-equity ratio of 1.14. The firm has a market capitalization of $8.11 billion, a PE ratio of 82.86, a PEG ratio of 2.25 and a beta of 1.44. Builders FirstSource has a twelve month low of $65.10 and a twelve month high of $151.03. The stock has a 50-day simple moving average of $76.91 and a two-hundred day simple moving average of $88.87.

Builders FirstSource (NYSE:BLDR) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.17 earnings per share for the quarter, missing the consensus estimate of $1.25 by ($0.08). Builders FirstSource had a net margin of 0.71% and a return on equity of 11.73%. The company had revenue of $3.86 billion for the quarter, compared to the consensus estimate of $3.91 billion. During the same quarter in the prior year, the company earned $2.38 earnings per share. The company’s quarterly revenue was down 8.8% on a year-over-year basis. On average, equities analysts predict that Builders FirstSource will post 3.29 EPS for the current fiscal year.

Builders FirstSource announced that its Board of Directors has initiated a stock repurchase plan on Thursday, April 30th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Institutional Trading of Builders FirstSource

Institutional investors and hedge funds have recently made changes to their positions in the stock. Daiwa Securities Group Inc. lifted its holdings in shares of Builders FirstSource by 0.4% during the 2nd quarter. Daiwa Securities Group Inc. now owns 17,630 shares of the company’s stock worth $2,057,000 after acquiring an additional 78 shares during the last quarter. New Mexico Educational Retirement Board increased its stake in Builders FirstSource by 2.0% in the fourth quarter. New Mexico Educational Retirement Board now owns 5,100 shares of the company’s stock valued at $525,000 after acquiring an additional 100 shares during the last quarter. Moors & Cabot Inc. raised its position in Builders FirstSource by 1.5% during the fourth quarter. Moors & Cabot Inc. now owns 7,388 shares of the company’s stock valued at $760,000 after purchasing an additional 109 shares in the last quarter. Root Financial Partners LLC raised its position in Builders FirstSource by 43.6% during the first quarter. Root Financial Partners LLC now owns 372 shares of the company’s stock valued at $31,000 after purchasing an additional 113 shares in the last quarter. Finally, CIBC Private Wealth Group LLC lifted its stake in Builders FirstSource by 5.9% during the third quarter. CIBC Private Wealth Group LLC now owns 2,272 shares of the company’s stock worth $275,000 after purchasing an additional 126 shares during the last quarter. Hedge funds and other institutional investors own 95.53% of the company’s stock.

About Builders FirstSource

Builders FirstSource, Inc is a leading supplier of structural and value-added building products and services to professional contractors, homebuilders and remodelers. The company provides a comprehensive range of materials and prefabricated components that support all phases of residential construction, from site development and framing to finishing and installation.

The company’s core offerings include lumber and lumber sheet goods, windows and doors, millwork, roofing and siding, and engineered wood products such as roof and floor trusses.