Inherent Group LP Acquires New Position in Builders FirstSource, Inc. (NYSE:BLDR)

Inherent Group LP acquired a new stake in shares of Builders FirstSource, Inc. (NYSE:BLDR) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 15,000 shares of the company’s stock, valued at approximately $2,076,000. Builders FirstSource makes up about 1.8% of Inherent Group LP’s investment portfolio, making the stock its 11th largest position.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in BLDR. Allianz Asset Management GmbH grew its position in Builders FirstSource by 73.9% in the fourth quarter. Allianz Asset Management GmbH now owns 128,348 shares of the company’s stock worth $21,426,000 after acquiring an additional 54,557 shares in the last quarter. Boulder Hill Capital Management LP bought a new stake in Builders FirstSource in the fourth quarter worth approximately $851,000. New Mexico Educational Retirement Board grew its position in Builders FirstSource by 512.3% in the first quarter. New Mexico Educational Retirement Board now owns 39,800 shares of the company’s stock worth $8,300,000 after acquiring an additional 33,300 shares in the last quarter. Pitcairn Co. grew its position in Builders FirstSource by 37.2% in the fourth quarter. Pitcairn Co. now owns 21,051 shares of the company’s stock worth $3,514,000 after acquiring an additional 5,704 shares in the last quarter. Finally, SG Americas Securities LLC grew its position in Builders FirstSource by 273.0% in the first quarter. SG Americas Securities LLC now owns 62,622 shares of the company’s stock worth $13,060,000 after acquiring an additional 45,832 shares in the last quarter. 95.53% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have commented on BLDR shares. Jefferies Financial Group reissued a “buy” rating and issued a $185.00 target price (down from $205.00) on shares of Builders FirstSource in a research report on Friday, August 9th. Bank of America boosted their price objective on shares of Builders FirstSource from $165.00 to $198.00 and gave the stock a “neutral” rating in a research note on Thursday, September 19th. Baird R W upgraded shares of Builders FirstSource from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, August 7th. Robert W. Baird upgraded shares of Builders FirstSource from a “neutral” rating to an “outperform” rating and boosted their price objective for the stock from $185.00 to $190.00 in a research note on Wednesday, August 7th. Finally, StockNews.com upgraded shares of Builders FirstSource from a “hold” rating to a “buy” rating in a research note on Monday. Four research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $190.00.

Builders FirstSource Price Performance

Shares of Builders FirstSource stock opened at $195.81 on Tuesday. The firm has a fifty day moving average price of $168.61 and a two-hundred day moving average price of $170.60. The company has a market cap of $23.90 billion, a PE ratio of 16.76, a price-to-earnings-growth ratio of 10.06 and a beta of 2.06. Builders FirstSource, Inc. has a fifty-two week low of $105.24 and a fifty-two week high of $214.70. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.83 and a quick ratio of 1.14.

Builders FirstSource (NYSE:BLDR) last released its quarterly earnings data on Tuesday, August 6th. The company reported $3.50 EPS for the quarter, topping analysts’ consensus estimates of $3.02 by $0.48. The company 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 firm’s revenue for the quarter was down 1.6% compared to the same quarter last year. During the same period last year, the firm earned $3.89 EPS. Analysts expect that Builders FirstSource, Inc. will post 11.65 EPS for the current year.

Builders FirstSource announced that its Board of Directors has initiated a share repurchase 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 stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its stock is undervalued.

Insider Transactions at Builders FirstSource

In other news, Director Craig Arthur Steinke sold 30,000 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the director now directly owns 95,333 shares of the company’s stock, valued at approximately $14,650,775.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.80% of the stock is owned by insiders.

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.