Short Interest in Builders FirstSource, Inc. (NYSE:BLDR) Expands By 11.0%

Builders FirstSource, Inc. (NYSE:BLDR) was the recipient of a large growth in short interest during the month of August. As of August 31st, there was short interest totalling 3,620,000 shares, a growth of 11.0% from the August 15th total of 3,260,000 shares. Approximately 3.2% of the shares of the stock are sold short. Based on an average trading volume of 1,780,000 shares, the days-to-cover ratio is presently 2.0 days.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. Truist Financial upgraded Builders FirstSource from a “hold” rating to a “buy” rating and lifted their target price for the stock from $165.00 to $220.00 in a research report on Monday. Barclays lowered their price objective on shares of Builders FirstSource from $188.00 to $182.00 and set an “overweight” rating for the company in a research report on Wednesday, August 7th. Oppenheimer lifted their price target on shares of Builders FirstSource from $205.00 to $225.00 and gave the company an “outperform” rating in a research note on Wednesday. Robert W. Baird upgraded Builders FirstSource from a “neutral” rating to an “outperform” rating and raised their price objective for the stock from $185.00 to $190.00 in a report on Wednesday, August 7th. Finally, Wedbush reiterated an “outperform” rating and issued a $175.00 target price on shares of Builders FirstSource in a report on Tuesday, August 6th. Four analysts have rated the stock with a hold rating, twelve have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $185.86.

Builders FirstSource Stock Performance

Shares of Builders FirstSource stock traded down $0.50 during midday trading on Wednesday, hitting $193.39. The company had a trading volume of 713,274 shares, compared to its average volume of 1,607,964. The company has a fifty day simple moving average of $164.61 and a 200 day simple moving average of $170.70. The stock has a market cap of $23.60 billion, a price-to-earnings ratio of 16.60, a PEG ratio of 10.06 and a beta of 2.06. The company has a quick ratio of 1.14, a current ratio of 1.83 and a debt-to-equity ratio of 0.88. Builders FirstSource has a 12-month low of $105.24 and a 12-month high of $214.70.

Builders FirstSource (NYSE:BLDR) last announced its quarterly earnings data on Tuesday, August 6th. The company reported $3.50 earnings per share for the quarter, beating analysts’ consensus estimates of $3.02 by $0.48. The firm had revenue of $4.46 billion for the quarter, compared to analyst estimates 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 period in the previous year, the company earned $3.89 earnings per share. As a group, analysts predict that Builders FirstSource will post 11.65 earnings per share for the current fiscal year.

Builders FirstSource announced that its board has approved a share buyback program on Tuesday, August 6th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to buy up to 5.3% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership 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 dated Thursday, August 8th. The stock was sold at an average price of $153.68, for a total value of $4,610,400.00. Following the completion of the transaction, the director now owns 95,333 shares in the company, valued at $14,650,775.44. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Builders FirstSource

A number of large investors have recently bought and sold shares of BLDR. Innealta Capital LLC acquired a new position in shares of Builders FirstSource in the 2nd quarter valued at about $27,000. Westside Investment Management Inc. purchased a new position in shares of Builders FirstSource during the 1st quarter valued at approximately $31,000. Principal Securities Inc. acquired a new position in shares of Builders FirstSource in the 4th quarter valued at $32,000. ORG Partners LLC purchased a new stake in Builders FirstSource during the first quarter worth $33,000. Finally, American Capital Advisory LLC acquired a new stake in Builders FirstSource during the first quarter valued at $34,000. Hedge funds and other institutional investors own 95.53% of the company’s stock.

Builders FirstSource Company Profile

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.