Builders FirstSource (NYSE:BLDR) Rating Increased to Buy at Truist Financial

Builders FirstSource (NYSE:BLDR) was upgraded by stock analysts at Truist Financial from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, MarketBeat.com reports. The firm currently has a $220.00 price objective on the stock, up from their prior price objective of $165.00. Truist Financial’s price target suggests a potential upside of 13.47% from the company’s current price.

Other research analysts have also recently issued reports about the stock. Royal Bank of Canada dropped their price objective on shares of Builders FirstSource from $193.00 to $178.00 and set an “outperform” rating for the company in a research note on Wednesday, August 7th. Wedbush reissued an “outperform” rating and set a $175.00 price objective on shares of Builders FirstSource in a research note on Tuesday, August 6th. Jefferies Financial Group reissued a “buy” rating and set a $185.00 price objective (down from $205.00) on shares of Builders FirstSource in a research note on Friday, August 9th. B. Riley dropped their price objective on shares of Builders FirstSource from $197.00 to $187.00 and set a “buy” rating for the company in a research note on Wednesday, August 7th. Finally, Benchmark lowered their target price on shares of Builders FirstSource from $220.00 to $200.00 and set a “buy” rating for the company in a research note on Wednesday, August 7th. Four investment analysts have rated the stock with a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $184.43.

Builders FirstSource Price Performance

BLDR stock opened at $193.89 on Monday. The firm has a 50 day moving average of $163.42 and a 200-day moving average of $170.74. Builders FirstSource has a 12-month low of $105.24 and a 12-month high of $214.70. The company has a current ratio of 1.83, a quick ratio of 1.14 and a debt-to-equity ratio of 0.88. The company has a market cap of $23.67 billion, a price-to-earnings ratio of 16.60, a PEG ratio of 10.06 and a beta of 2.06.

Builders FirstSource (NYSE:BLDR) last posted its quarterly earnings results on Tuesday, August 6th. The company reported $3.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.02 by $0.48. Builders FirstSource had a net margin of 8.25% and a return on equity of 37.05%. The company had revenue of $4.46 billion during the quarter, compared to the consensus estimate of $4.48 billion. During the same period last year, the firm earned $3.89 EPS. The company’s revenue for the quarter was down 1.6% on a year-over-year basis. As a group, equities analysts expect that Builders FirstSource will post 11.65 EPS for the current fiscal year.

Builders FirstSource announced that its Board of Directors has initiated a stock buyback plan on Tuesday, August 6th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to purchase up to 5.3% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are 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 transaction of $4,610,400.00. Following the transaction, the director now owns 95,333 shares in the company, valued at approximately $14,650,775.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Builders FirstSource

Hedge funds and other institutional investors have recently made changes to their positions in the business. Innealta Capital LLC acquired a new position in Builders FirstSource in the 2nd quarter worth $27,000. Westside Investment Management Inc. acquired a new position in Builders FirstSource in the 1st quarter worth $31,000. Principal Securities Inc. acquired a new position in Builders FirstSource in the 4th quarter worth $32,000. ORG Partners LLC acquired a new position in Builders FirstSource in the 1st quarter worth $33,000. Finally, American Capital Advisory LLC acquired a new position in Builders FirstSource in the 1st quarter worth $34,000. Institutional investors and hedge funds own 95.53% of the company’s stock.

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.