Builders FirstSource (NYSE:BLDR) Trading Down 6.2% – Should You Sell?

Builders FirstSource, Inc. (NYSE:BLDR) shares were down 6.2% on Wednesday . The stock traded as low as $103.13 and last traded at $102.8310. Approximately 821,683 shares traded hands during mid-day trading, a decline of 62% from the average daily volume of 2,189,003 shares. The stock had previously closed at $109.68.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Stephens reduced their price objective on Builders FirstSource from $137.00 to $125.00 and set an “equal weight” rating for the company in a research note on Wednesday, February 18th. Jefferies Financial Group reduced their price target on Builders FirstSource from $112.00 to $110.00 and set a “hold” rating for the company in a research report on Monday. Benchmark decreased their price objective on Builders FirstSource from $142.00 to $138.00 and set a “buy” rating on the stock in a research note on Friday, February 20th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Builders FirstSource in a research report on Wednesday, January 21st. Finally, DA Davidson reduced their target price on shares of Builders FirstSource from $115.00 to $111.00 and set a “neutral” rating for the company in a report on Monday, February 2nd. Eight research analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $127.39.

Builders FirstSource Price Performance

The company has a quick ratio of 1.16, a current ratio of 1.86 and a debt-to-equity ratio of 1.02. The firm’s fifty day moving average price is $114.89 and its 200 day moving average price is $119.77. The stock has a market cap of $11.36 billion, a PE ratio of 26.48, a P/E/G ratio of 1.76 and a beta of 1.56.

Builders FirstSource (NYSE:BLDR) last announced its quarterly earnings results on Tuesday, February 17th. The company reported $1.12 EPS for the quarter, missing the consensus estimate of $1.30 by ($0.18). Builders FirstSource had a return on equity of 17.89% and a net margin of 2.87%.The company had revenue of $3.36 billion during the quarter, compared to analysts’ expectations of $3.46 billion. During the same quarter in the previous year, the firm earned $2.31 EPS. The firm’s revenue for the quarter was down 12.1% compared to the same quarter last year. As a group, equities analysts expect that Builders FirstSource, Inc. will post 11.59 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd lifted 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 valued at $26,000 after purchasing an additional 132 shares during the last quarter. Cromwell Holdings LLC increased its stake in Builders FirstSource by 1,323.5% during the fourth quarter. Cromwell Holdings LLC now owns 242 shares of the company’s stock worth $25,000 after acquiring an additional 225 shares during the last quarter. TD Waterhouse Canada Inc. bought a new stake in shares of Builders FirstSource in the 3rd quarter valued at approximately $34,000. CYBER HORNET ETFs LLC bought a new position in shares of Builders FirstSource during the 2nd quarter valued at approximately $38,000. Finally, MUFG Securities EMEA plc bought a new stake in Builders FirstSource in the second quarter worth $38,000. 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.