Builders FirstSource (NYSE:BLDR) Stock Rating Lowered by Zacks Research

Builders FirstSource (NYSE:BLDR) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday,Zacks.com reports.

Several other brokerages have also recently weighed in on BLDR. Oppenheimer lowered their price target on shares of Builders FirstSource from $110.00 to $90.00 and set an “outperform” rating on the stock in a research report on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $66.00 price objective on shares of Builders FirstSource in a research report on Friday. Royal Bank Of Canada decreased their target price on shares of Builders FirstSource from $107.00 to $88.00 and set an “outperform” rating on the stock in a report on Friday, July 31st. Loop Capital reduced their price target on shares of Builders FirstSource from $140.00 to $110.00 in a research report on Friday, May 1st. Finally, BMO Capital Markets lowered their price objective on Builders FirstSource from $93.00 to $85.00 and set a “market perform” rating for the company in a research report on Tuesday, July 28th. Nine research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $90.59.

Builders FirstSource Price Performance

NYSE:BLDR opened at $75.40 on Monday. Builders FirstSource has a one year low of $65.10 and a one year high of $151.03. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.09 and a current ratio of 1.79. The stock has a market cap of $8.11 billion, a PE ratio of 82.86, a P/E/G ratio of 2.25 and a beta of 1.44. The stock has a 50 day moving average price of $76.91 and a 200 day moving average price of $88.87.

Builders FirstSource (NYSE:BLDR) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.17 EPS for the quarter, missing analysts’ consensus estimates of $1.25 by ($0.08). The company had revenue of $3.86 billion for the quarter, compared to analysts’ expectations of $3.91 billion. Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%.The business’s quarterly revenue was down 8.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.38 EPS. Equities research analysts expect that Builders FirstSource will post 3.29 EPS for the current fiscal year.

Builders FirstSource declared that its Board of Directors has approved a stock buyback plan on Thursday, April 30th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to reacquire up to 5.4% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Schwartz Investment Counsel Inc. lifted its stake in Builders FirstSource by 17.1% in the fourth quarter. Schwartz Investment Counsel Inc. now owns 95,800 shares of the company’s stock worth $9,857,000 after acquiring an additional 14,000 shares during the last quarter. Eagle Global Advisors LLC increased its position in shares of Builders FirstSource by 46.3% in the 4th quarter. Eagle Global Advisors LLC now owns 60,242 shares of the company’s stock valued at $6,198,000 after purchasing an additional 19,062 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Builders FirstSource by 10.3% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 238,867 shares of the company’s stock valued at $24,993,000 after purchasing an additional 22,270 shares during the last quarter. Diamond Hill Capital Management Inc. raised its holdings in shares of Builders FirstSource by 13.4% in the 4th quarter. Diamond Hill Capital Management Inc. now owns 1,872,708 shares of the company’s stock valued at $192,683,000 after purchasing an additional 221,641 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in shares of Builders FirstSource by 99,084.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company’s stock valued at $230,634,000 after purchasing an additional 2,239,301 shares in the last quarter. 95.53% of the stock is currently owned by hedge funds and other 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.