Royal Bank of Canada Grows Stake in Builders FirstSource, Inc. (NYSE:BLDR)

Royal Bank of Canada lifted its position in Builders FirstSource, Inc. (NYSE:BLDR) by 39.1% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 198,709 shares of the company’s stock after buying an additional 55,875 shares during the period. Royal Bank of Canada owned approximately 0.17% of Builders FirstSource worth $28,403,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Rafferty Asset Management LLC boosted its stake in shares of Builders FirstSource by 18.6% in the 4th quarter. Rafferty Asset Management LLC now owns 45,777 shares of the company’s stock worth $6,543,000 after buying an additional 7,180 shares during the last quarter. Raiffeisen Bank International AG purchased a new position in shares of Builders FirstSource in the 4th quarter worth $154,000. Redwood Investment Management LLC purchased a new position in shares of Builders FirstSource in the 4th quarter worth $1,433,000. Rockbridge Capital Management LLC purchased a new position in shares of Builders FirstSource in the 4th quarter worth $2,445,000. Finally, Polar Capital Holdings Plc purchased a new position in shares of Builders FirstSource in the 4th quarter worth $7,531,000. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

Builders FirstSource Trading Down 1.5%

Shares of BLDR stock opened at $108.16 on Friday. Builders FirstSource, Inc. has a 12-month low of $103.81 and a 12-month high of $203.14. The company has a current ratio of 1.77, a quick ratio of 1.16 and a debt-to-equity ratio of 0.86. The stock’s 50-day moving average price is $119.12 and its 200-day moving average price is $144.42. The stock has a market capitalization of $11.95 billion, a price-to-earnings ratio of 11.94, a price-to-earnings-growth ratio of 0.80 and a beta of 1.79.

Builders FirstSource (NYSE:BLDR) last issued its earnings results on Thursday, May 1st. The company reported $1.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.01. Builders FirstSource had a return on equity of 30.54% and a net margin of 6.57%. The firm had revenue of $3.66 billion for the quarter, compared to analysts’ expectations of $3.67 billion. During the same period in the previous year, the firm posted $2.65 earnings per share. The business’s revenue was down 6.0% compared to the same quarter last year. Equities research analysts predict that Builders FirstSource, Inc. will post 11.59 EPS for the current fiscal year.

Builders FirstSource announced that its Board of Directors has initiated a stock buyback program on Thursday, May 1st that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 3.9% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

BLDR has been the topic of several analyst reports. Stifel Nicolaus lowered their target price on Builders FirstSource from $125.00 to $118.00 and set a “hold” rating on the stock in a research report on Monday, May 5th. Raymond James reiterated an “outperform” rating and set a $140.00 target price (down from $170.00) on shares of Builders FirstSource in a research report on Friday, May 2nd. Barclays lowered their target price on Builders FirstSource from $151.00 to $137.00 and set an “overweight” rating on the stock in a research report on Friday, May 2nd. Deutsche Bank Aktiengesellschaft initiated coverage on Builders FirstSource in a research report on Tuesday, April 1st. They set a “buy” rating and a $151.00 target price on the stock. Finally, Truist Financial lowered their target price on Builders FirstSource from $220.00 to $180.00 and set a “buy” rating on the stock in a research report on Friday, February 21st. Six investment analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, Builders FirstSource presently has a consensus rating of “Moderate Buy” and a consensus target price of $167.58.

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.