Builders FirstSource (NYSE:BLDR) Reaches New 52-Week Low Following Weak Earnings

Shares of Builders FirstSource, Inc. (NYSE:BLDR) hit a new 52-week low during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $65.10 and last traded at $66.7660, with a volume of 170666 shares trading hands. The stock had previously closed at $66.01.

The company reported $1.17 EPS for the quarter, missing analysts’ consensus estimates of $1.25 by ($0.08). Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The business had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.91 billion. During the same period in the previous year, the firm earned $2.38 earnings per share. The business’s revenue was down 8.8% compared to the same quarter last year.

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

Key Builders FirstSource News

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Truist Financial lowered its price target from $115 to $90 but maintained a Buy rating, implying substantial potential upside from current levels. The revised target reflects a more cautious outlook while still indicating confidence in a longer-term recovery. Benzinga
• Positive Sentiment: An insider reportedly purchased 50,000 BLDR shares, an investment that may signal confidence that the recent selloff has created value. Quiver Quantitative analysis
• Neutral Sentiment: Analyst sentiment remains mixed but not broadly bearish: BMO Capital Markets and Stifel Nicolaus maintained Hold ratings, while Truist retained its Buy recommendation. BMO Capital Markets report
• Negative Sentiment: BLDR’s second-quarter results missed expectations, with earnings of $1.17 per share versus the $1.25 consensus and revenue of $3.86 billion versus $3.91 billion expected. Revenue declined 8.8% year over year, while EPS fell from $2.38 a year earlier. Builders FirstSource earnings report
• Negative Sentiment: Management issued fiscal 2026 revenue guidance of $14.0 billion to $14.8 billion, below the $14.8 billion analyst consensus at the midpoint-to-low end, reinforcing concerns about slowing demand. Zacks earnings outlook
• Negative Sentiment: Softening single-family housing starts and building permits are weighing on expectations for construction-material suppliers. Investors are also concerned that the housing recovery may be delayed, pressuring sales and profitability. Housing and earnings analysis

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on BLDR. Raymond James Financial decreased their target price on shares of Builders FirstSource from $140.00 to $100.00 in a research note on Friday, May 1st. Bank of America dropped their price target on Builders FirstSource from $123.00 to $100.00 and set a “neutral” rating on the stock in a research report on Monday, April 20th. Loop Capital decreased their price objective on Builders FirstSource from $140.00 to $110.00 in a research report on Friday, May 1st. Jefferies Financial Group decreased their price objective on Builders FirstSource from $85.00 to $80.00 and set a “hold” rating for the company in a research report on Monday, May 4th. Finally, Wells Fargo & Company lowered their target price on Builders FirstSource from $87.00 to $85.00 and set an “equal weight” rating on the stock in a research note on Friday, May 1st. Nine analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $95.64.

Institutional Trading of Builders FirstSource

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd grew its position in Builders FirstSource by 167.1% during the third quarter. Caitong International Asset Management Co. Ltd now owns 211 shares of the company’s stock worth $26,000 after buying an additional 132 shares during the period. Cromwell Holdings LLC lifted its position in shares of Builders FirstSource by 1,323.5% during the 4th quarter. Cromwell Holdings LLC now owns 242 shares of the company’s stock valued at $25,000 after acquiring an additional 225 shares during the period. CYBER HORNET ETFs LLC acquired a new stake in shares of Builders FirstSource during the 2nd quarter valued at approximately $38,000. MUFG Securities EMEA plc purchased a new stake in shares of Builders FirstSource during the 2nd quarter worth approximately $38,000. Finally, Sunbelt Securities Inc. boosted its stake in shares of Builders FirstSource by 508.5% during the 1st quarter. Sunbelt Securities Inc. now owns 359 shares of the company’s stock worth $30,000 after acquiring an additional 300 shares in the last quarter. Institutional investors and hedge funds own 95.53% of the company’s stock.

Builders FirstSource Price Performance

The firm has a market cap of $7.07 billion, a PE ratio of 25.20, a price-to-earnings-growth ratio of 1.67 and a beta of 1.42. The company has a current ratio of 1.76, a quick ratio of 1.09 and a debt-to-equity ratio of 1.15. The company has a 50 day moving average price of $77.08 and a 200 day moving average price of $90.01.

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.