Builders FirstSource (NYSE:BLDR) Hits New 1-Year Low Following Analyst Downgrade

Builders FirstSource, Inc. (NYSE:BLDR) shares hit a new 52-week low during mid-day 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 changing hands. The stock had previously closed at $111.86.

A number of other research analysts have also recently commented on BLDR. StockNews.com cut Builders FirstSource from a “buy” rating to a “hold” rating in a research note on Monday, January 13th. Royal Bank of Canada dropped their price objective on Builders FirstSource from $162.00 to $132.00 and set an “outperform” rating for the company in a research note on Friday. UBS Group dropped their price target on shares of Builders FirstSource from $180.00 to $163.00 and set a “buy” rating for the company in a research report on Friday. BMO Capital Markets decreased their target price on Builders FirstSource from $146.00 to $135.00 and set a “market perform” rating for the company in a research report on Monday. Finally, Barclays decreased their price objective on Builders FirstSource from $151.00 to $137.00 and set an “overweight” rating for the company in a report on Friday. 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. Based on data from MarketBeat.com, Builders FirstSource currently has a consensus rating of “Moderate Buy” and a consensus price target of $167.58.

Institutional Trading of Builders FirstSource

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of Builders FirstSource during the fourth quarter valued at $199,890,000. Voya Investment Management LLC grew its holdings in Builders FirstSource by 174.2% during the 4th quarter. Voya Investment Management LLC now owns 1,416,280 shares of the company’s stock worth $202,374,000 after acquiring an additional 899,841 shares in the last quarter. FMR LLC raised its holdings in shares of Builders FirstSource by 7.3% in the 4th quarter. FMR LLC now owns 10,898,366 shares of the company’s stock valued at $1,557,703,000 after purchasing an additional 740,214 shares in the last quarter. Proficio Capital Partners LLC lifted its position in shares of Builders FirstSource by 15,533.9% in the 4th quarter. Proficio Capital Partners LLC now owns 649,903 shares of the company’s stock worth $92,891,000 after purchasing an additional 645,746 shares during the period. Finally, Diamond Hill Capital Management Inc. increased its holdings in Builders FirstSource by 47.2% during the fourth quarter. Diamond Hill Capital Management Inc. now owns 1,943,439 shares of the company’s stock valued at $277,776,000 after buying an additional 623,583 shares during the period. 95.53% of the stock is owned by hedge funds and other institutional investors.

Builders FirstSource Stock Performance

The company has a debt-to-equity ratio of 0.86, a current ratio of 1.77 and a quick ratio of 1.16. The company has a market cap of $12.50 billion, a PE ratio of 12.13, a price-to-earnings-growth ratio of 0.80 and a beta of 1.79. The business has a fifty day simple moving average of $124.20 and a two-hundred day simple moving average of $150.22.

Builders FirstSource (NYSE:BLDR) last issued its quarterly earnings data on Thursday, May 1st. The company reported $1.51 earnings per share for the quarter, beating analysts’ consensus estimates of $1.50 by $0.01. The company had revenue of $3.66 billion for the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same quarter last year, the company earned $2.65 earnings per share. Research analysts anticipate that Builders FirstSource, Inc. will post 11.59 earnings per share for the current year.

Builders FirstSource declared that its Board of Directors has authorized a stock buyback program on Thursday, May 1st that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 3.9% of its stock through open market purchases. Stock buyback programs are generally an indication 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.