Builders FirstSource (NYSE:BLDR) Shares Gap Down – Here’s What Happened

Shares of Builders FirstSource, Inc. (NYSE:BLDR) gapped down prior to trading on Tuesday . The stock had previously closed at $184.80, but opened at $175.11. Builders FirstSource shares last traded at $171.51, with a volume of 233,187 shares.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Loop Capital lifted their target price on shares of Builders FirstSource from $190.00 to $230.00 and gave the company a “buy” rating in a report on Friday, September 20th. Oppenheimer reiterated an “outperform” rating and issued a $225.00 price objective on shares of Builders FirstSource in a report on Tuesday. The Goldman Sachs Group initiated coverage on Builders FirstSource in a research report on Thursday, October 10th. They issued a “buy” rating and a $225.00 target price for the company. StockNews.com raised shares of Builders FirstSource from a “hold” rating to a “buy” rating in a research report on Monday, September 23rd. Finally, Bank of America raised their price target on shares of Builders FirstSource from $165.00 to $198.00 and gave the company a “neutral” rating in a research report on Thursday, September 19th. Four equities research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $200.35.

Builders FirstSource Stock Performance

The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.14 and a current ratio of 1.83. The stock has a market cap of $21.07 billion, a PE ratio of 14.78, a P/E/G ratio of 11.48 and a beta of 2.06. The firm’s 50-day moving average is $184.49 and its 200 day moving average is $168.64.

Builders FirstSource (NYSE:BLDR) last announced its earnings results on Tuesday, August 6th. The company reported $3.50 earnings per share for the quarter, topping the consensus estimate of $3.02 by $0.48. The business had revenue of $4.46 billion during the quarter, compared to the consensus estimate of $4.48 billion. Builders FirstSource had a net margin of 8.25% and a return on equity of 37.05%. The business’s quarterly revenue was down 1.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.89 earnings per share. As a group, research analysts anticipate that Builders FirstSource, Inc. will post 11.68 EPS for the current year.

Builders FirstSource declared that its board has initiated a share buyback plan on Tuesday, August 6th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 5.3% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Insider Activity

In related news, Director Craig Arthur Steinke sold 30,000 shares of Builders FirstSource stock in a transaction on Thursday, August 8th. The shares were sold at an average price of $153.68, for a total value of $4,610,400.00. Following the transaction, the director now directly owns 95,333 shares in the company, valued at $14,650,775.44. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Corporate insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Builders FirstSource

Several institutional investors have recently made changes to their positions in BLDR. Cyndeo Wealth Partners LLC lifted its stake in shares of Builders FirstSource by 3.7% in the third quarter. Cyndeo Wealth Partners LLC now owns 1,571 shares of the company’s stock valued at $305,000 after purchasing an additional 56 shares during the period. World Equity Group Inc. lifted its position in shares of Builders FirstSource by 4.1% during the 3rd quarter. World Equity Group Inc. now owns 1,632 shares of the company’s stock valued at $316,000 after acquiring an additional 64 shares during the period. Vanguard Personalized Indexing Management LLC boosted its stake in shares of Builders FirstSource by 0.7% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 10,240 shares of the company’s stock worth $1,417,000 after acquiring an additional 74 shares in the last quarter. First Horizon Advisors Inc. grew its holdings in shares of Builders FirstSource by 42.1% in the 2nd quarter. First Horizon Advisors Inc. now owns 253 shares of the company’s stock worth $35,000 after acquiring an additional 75 shares during the period. Finally, Team Hewins LLC increased its stake in Builders FirstSource by 6.5% in the 1st quarter. Team Hewins LLC now owns 1,313 shares of the company’s stock valued at $274,000 after purchasing an additional 80 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, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.