Builders FirstSource (NYSE:BLDR) to Buyback $1.00 billion in Shares

Builders FirstSource (NYSE:BLDR) declared that its Board of Directors has initiated a stock repurchase program on Tuesday, August 6th, RTT News reports. The company plans to repurchase $1.00 billion in shares. This repurchase authorization permits the company to buy up to 5.3% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on BLDR. Robert W. Baird raised shares of Builders FirstSource from a “neutral” rating to an “outperform” rating and raised their target price for the company from $185.00 to $190.00 in a research note on Wednesday. Zelman & Associates reaffirmed a “hold” rating on shares of Builders FirstSource in a research report on Monday, June 17th. Truist Financial reduced their price target on shares of Builders FirstSource from $190.00 to $180.00 and set a “hold” rating for the company in a research note on Wednesday, May 8th. StockNews.com downgraded shares of Builders FirstSource from a “buy” rating to a “hold” rating in a report on Monday, July 22nd. Finally, Wedbush reissued an “outperform” rating and issued a $175.00 target price on shares of Builders FirstSource in a report on Tuesday. Six investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $188.07.

Builders FirstSource Stock Up 3.2 %

BLDR opened at $160.64 on Wednesday. The company has a market capitalization of $19.61 billion, a PE ratio of 13.33, a price-to-earnings-growth ratio of 2.57 and a beta of 2.04. The firm has a 50-day simple moving average of $149.67 and a two-hundred day simple moving average of $173.50. The company has a quick ratio of 1.45, a current ratio of 2.21 and a debt-to-equity ratio of 0.75. Builders FirstSource has a 52 week low of $105.24 and a 52 week high of $214.70.

Builders FirstSource (NYSE:BLDR) last released its quarterly earnings results on Tuesday, August 6th. The company reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.02 by $0.48. Builders FirstSource had a return on equity of 38.66% and a net margin of 8.57%. The business had revenue of $4.46 billion during the quarter, compared to analysts’ expectations of $4.48 billion. During the same quarter last year, the business posted $3.89 EPS. The firm’s revenue for the quarter was down 1.6% compared to the same quarter last year. Analysts forecast that Builders FirstSource will post 12.91 earnings per share for the current fiscal year.

Insider Activity at Builders FirstSource

In related news, insider Paul M. Mccrobie sold 9,118 shares of the company’s stock in a transaction on Friday, May 24th. The shares were sold at an average price of $170.11, for a total transaction of $1,551,062.98. Following the sale, the insider now owns 22,667 shares of the company’s stock, valued at $3,855,883.37. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. In other Builders FirstSource news, insider Paul M. Mccrobie sold 9,118 shares of the business’s stock in a transaction that occurred on Friday, May 24th. The stock was sold at an average price of $170.11, for a total transaction of $1,551,062.98. Following the sale, the insider now directly owns 22,667 shares of the company’s stock, valued at $3,855,883.37. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Michael Hiller sold 4,875 shares of the company’s stock in a transaction that occurred on Thursday, May 30th. The shares were sold at an average price of $159.25, for a total value of $776,343.75. Following the sale, the insider now owns 30,106 shares in the company, valued at $4,794,380.50. The disclosure for this sale can be found here. 1.80% of the stock is currently owned by insiders.

Builders FirstSource Company Profile

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.