Builders FirstSource (NYSE:BLDR) Downgraded by StockNews.com to “Hold”

StockNews.com downgraded shares of Builders FirstSource (NYSE:BLDR) from a buy rating to a hold rating in a research report released on Tuesday morning.

Other equities analysts have also recently issued research reports about the company. The Goldman Sachs Group began coverage on Builders FirstSource in a report on Thursday, October 10th. They issued a “buy” rating and a $225.00 price objective for the company. Stephens upped their price objective on Builders FirstSource from $178.00 to $200.00 and gave the stock an “overweight” rating in a research report on Thursday, November 7th. Jefferies Financial Group lifted their target price on shares of Builders FirstSource from $185.00 to $223.00 and gave the company a “buy” rating in a report on Wednesday, October 9th. UBS Group started coverage on shares of Builders FirstSource in a research report on Friday, October 25th. They set a “buy” rating and a $232.00 price target on the stock. Finally, Robert W. Baird lifted their price objective on shares of Builders FirstSource from $190.00 to $222.00 and gave the company an “outperform” rating in a report on Wednesday, October 16th. Five investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $206.47.

Builders FirstSource Price Performance

Shares of NYSE:BLDR opened at $178.84 on Tuesday. Builders FirstSource has a twelve month low of $121.43 and a twelve month high of $214.70. The company has a current ratio of 1.77, a quick ratio of 1.14 and a debt-to-equity ratio of 0.83. The company has a market cap of $20.58 billion, a PE ratio of 17.46, a price-to-earnings-growth ratio of 0.99 and a beta of 2.08. The company’s 50 day moving average is $185.19 and its 200 day moving average is $168.18.

Builders FirstSource (NYSE:BLDR) last released its quarterly earnings data on Tuesday, November 5th. The company reported $3.07 EPS for the quarter, missing the consensus estimate of $3.09 by ($0.02). The business had revenue of $4.23 billion during the quarter, compared to analysts’ expectations of $4.44 billion. Builders FirstSource had a net margin of 7.40% and a return on equity of 33.55%. The firm’s revenue was down 6.7% on a year-over-year basis. During the same period last year, the company earned $4.24 earnings per share. On average, sell-side analysts forecast that Builders FirstSource will post 11.56 EPS for the current year.

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

Insiders Place Their Bets

In other news, Director Cleveland A. Christophe sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, November 7th. The shares were sold at an average price of $178.41, for a total value of $1,784,100.00. Following the transaction, the director now directly owns 33,083 shares in the company, valued at approximately $5,902,338.03. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 1.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Baillie Gifford & Co. purchased a new stake in shares of Builders FirstSource in the third quarter valued at about $267,132,000. Diamond Hill Capital Management Inc. purchased a new stake in Builders FirstSource during the 3rd quarter valued at approximately $255,867,000. Massachusetts Financial Services Co. MA lifted its position in Builders FirstSource by 339.8% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 1,180,358 shares of the company’s stock worth $163,373,000 after acquiring an additional 911,990 shares during the period. Robeco Institutional Asset Management B.V. grew its stake in shares of Builders FirstSource by 109.7% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 904,600 shares of the company’s stock valued at $175,366,000 after purchasing an additional 473,238 shares during the last quarter. Finally, Bessemer Group Inc. increased its holdings in shares of Builders FirstSource by 477,028.7% in the first quarter. Bessemer Group Inc. now owns 448,501 shares of the company’s stock valued at $93,535,000 after purchasing an additional 448,407 shares during the period. Hedge funds and other 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.