Builders FirstSource (NYSE:BLDR) Reaches New 52-Week Low – Here’s Why

Builders FirstSource, Inc. (NYSE:BLDR)’s share price reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $67.00 and last traded at $68.2040, with a volume of 212106 shares trading hands. The stock had previously closed at $70.18.

Analysts Set New Price Targets

A number of research firms have recently issued reports on BLDR. Loop Capital reduced their price target on shares of Builders FirstSource from $140.00 to $110.00 in a research note on Friday, May 1st. Stifel Nicolaus reduced their price target on shares of Builders FirstSource from $115.00 to $93.00 and set a “hold” rating on the stock in a research note on Monday, March 16th. Weiss Ratings downgraded shares of Builders FirstSource from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, March 20th. DA Davidson cut their target price on shares of Builders FirstSource from $111.00 to $84.00 and set a “neutral” rating on the stock in a research note on Friday, May 1st. Finally, Raymond James Financial cut their target price on shares of Builders FirstSource from $140.00 to $100.00 in a research note on Friday, May 1st. Nine investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $101.88.

Builders FirstSource Stock Performance

The firm’s 50 day moving average is $83.60 and its two-hundred day moving average is $101.34. The stock has a market capitalization of $7.26 billion, a PE ratio of 25.91, a P/E/G ratio of 1.69 and a beta of 1.49. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.09 and a current ratio of 1.76.

Builders FirstSource (NYSE:BLDR) last announced its earnings results on Thursday, April 30th. The company reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.12). Builders FirstSource had a return on equity of 14.89% and a net margin of 1.97%.The business had revenue of $3.29 billion for the quarter, compared to analysts’ expectations of $3.17 billion. During the same period in the previous year, the company earned $1.51 earnings per share. Builders FirstSource’s quarterly revenue was down 10.1% on a year-over-year basis. As a group, research analysts predict that Builders FirstSource, Inc. will post 4.26 earnings per share for the current year.

Builders FirstSource announced that its Board of Directors has approved a share buyback plan on Thursday, April 30th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.4% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Insider Activity at Builders FirstSource

In other news, Director Paul S. Levy acquired 50,000 shares of the company’s stock in a transaction on Friday, March 13th. The shares were bought at an average cost of $87.73 per share, with a total value of $4,386,500.00. Following the transaction, the director owned 1,727,191 shares in the company, valued at approximately $151,526,466.43. This trade represents a 2.98% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.70% of the company’s stock.

Institutional Investors Weigh In On Builders FirstSource

A number of large investors have recently modified their holdings of BLDR. Capital International Investors purchased a new stake in shares of Builders FirstSource in the 3rd quarter valued at approximately $429,640,000. Northwestern Mutual Wealth Management Co. boosted 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 buying an additional 2,239,301 shares in the last quarter. Franklin Resources Inc. boosted its holdings in shares of Builders FirstSource by 2,498.8% in the 3rd quarter. Franklin Resources Inc. now owns 1,854,525 shares of the company’s stock valued at $224,861,000 after buying an additional 1,783,164 shares in the last quarter. Sands Capital Management LLC boosted its holdings in shares of Builders FirstSource by 139.1% in the 3rd quarter. Sands Capital Management LLC now owns 2,430,902 shares of the company’s stock valued at $294,747,000 after buying an additional 1,414,129 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its holdings in shares of Builders FirstSource by 235.1% in the 3rd quarter. Victory Capital Management Inc. now owns 1,893,483 shares of the company’s stock valued at $229,585,000 after buying an additional 1,328,363 shares in the last quarter. 95.53% of the stock is 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.