Builders FirstSource (NYSE:BLDR) Shares Up 10.5% – What’s Next?

Builders FirstSource, Inc. (NYSE:BLDR) shot up 10.5% during mid-day trading on Wednesday . The company traded as high as $85.40 and last traded at $84.7760. 291,741 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 2,452,264 shares. The stock had previously closed at $76.73.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Robert W. Baird lowered their price objective on Builders FirstSource from $125.00 to $95.00 in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft decreased their target price on Builders FirstSource from $102.00 to $81.00 and set a “hold” rating on the stock in a research note on Monday, May 4th. UBS Group lowered their price target on Builders FirstSource from $143.00 to $122.00 and set a “buy” rating on the stock in a report on Friday, May 1st. Stephens dropped their price target on Builders FirstSource from $125.00 to $100.00 and set an “equal weight” rating for the company in a research note on Monday, April 27th. Finally, Truist Financial cut their price objective on shares of Builders FirstSource from $145.00 to $115.00 and set a “buy” rating for the company in a report on Thursday, April 30th. Nine equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $101.88.

Builders FirstSource Price Performance

The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.09. The firm has a market cap of $9.16 billion, a P/E ratio of 32.62, a PEG ratio of 1.85 and a beta of 1.44. The stock’s 50-day simple moving average is $78.79 and its two-hundred day simple moving average is $95.50.

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

Builders FirstSource announced that its board has approved a stock repurchase plan on Thursday, April 30th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 5.4% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Institutional Trading of Builders FirstSource

Several 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. Cromwell Holdings LLC raised its holdings in Builders FirstSource by 1,323.5% in the 4th quarter. Cromwell Holdings LLC now owns 242 shares of the company’s stock worth $25,000 after purchasing an additional 225 shares during the period. CYBER HORNET ETFs LLC acquired a new position in Builders FirstSource in the 2nd quarter worth about $38,000. MUFG Securities EMEA plc purchased a new position in Builders FirstSource during the second quarter worth approximately $38,000. Finally, Sunbelt Securities Inc. boosted its position in Builders FirstSource by 508.5% during the first quarter. Sunbelt Securities Inc. now owns 359 shares of the company’s stock worth $30,000 after purchasing an additional 300 shares in the last quarter. Hedge funds and other institutional investors own 95.53% of the company’s stock.

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.