Builders FirstSource (NYSE:BLDR) Lowered to “Strong Sell” Rating by Zacks Research

Zacks Research lowered shares of Builders FirstSource (NYSE:BLDR) from a hold rating to a strong sell rating in a research report released on Monday morning,Zacks.com reports.

Several other equities research analysts have also weighed in on BLDR. Stifel Nicolaus dropped their target price on Builders FirstSource from $76.00 to $70.00 and set a “hold” rating on the stock in a research report on Thursday, July 23rd. Jefferies Financial Group reduced their price target on shares of Builders FirstSource from $85.00 to $80.00 and set a “hold” rating for the company in a report on Monday, May 4th. Raymond James Financial lowered their price target on shares of Builders FirstSource from $140.00 to $100.00 in a research report on Friday, May 1st. UBS Group cut their price objective on shares of Builders FirstSource from $122.00 to $88.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Benchmark reduced their target price on shares of Builders FirstSource from $105.00 to $100.00 and set a “buy” rating for the company in a research note on Thursday, July 23rd. Nine investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $90.59.

Builders FirstSource Stock Performance

Shares of NYSE BLDR 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’s 50-day moving average price is $76.91 and its two-hundred day moving average price is $88.87. Builders FirstSource has a 52-week low of $65.10 and a 52-week high of $151.03. The stock has a market capitalization of $8.11 billion, a P/E ratio of 82.86, a P/E/G ratio of 2.25 and a beta of 1.44.

Builders FirstSource (NYSE:BLDR) last posted its earnings results on Thursday, July 30th. The company reported $1.17 EPS for the quarter, missing the consensus estimate of $1.25 by ($0.08). The company had revenue of $3.86 billion for the quarter, compared to the consensus estimate of $3.91 billion. Builders FirstSource had a net margin of 0.71% and a return on equity of 11.73%. The firm’s revenue for the quarter was down 8.8% compared to the same quarter last year. During the same period last year, the company posted $2.38 earnings per share. As a group, sell-side analysts forecast that Builders FirstSource will post 3.29 earnings per share for the current year.

Builders FirstSource announced that its board has approved a share repurchase program on Thursday, April 30th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its shares are undervalued.

Institutional Trading of Builders FirstSource

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd boosted its stake in shares of Builders FirstSource by 167.1% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company’s stock worth $26,000 after acquiring an additional 132 shares in the last quarter. Sunbelt Securities Inc. lifted its holdings in shares of Builders FirstSource by 508.5% during the first quarter. Sunbelt Securities Inc. now owns 359 shares of the company’s stock valued at $30,000 after purchasing an additional 300 shares during the last quarter. Root Financial Partners LLC increased its stake in Builders FirstSource by 43.6% in the 1st quarter. Root Financial Partners LLC now owns 372 shares of the company’s stock worth $31,000 after purchasing an additional 113 shares in the last quarter. Transamerica Financial Advisors LLC raised its holdings in Builders FirstSource by 90.2% during the 4th quarter. Transamerica Financial Advisors LLC now owns 369 shares of the company’s stock worth $38,000 after buying an additional 175 shares during the period. Finally, CYBER HORNET ETFs LLC purchased a new stake in Builders FirstSource during the second quarter valued at about $38,000. 95.53% of the stock is currently owned by institutional investors.

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.