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

Builders FirstSource, Inc. (NYSE:BLDR)’s share price gapped down before the market opened 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.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on BLDR shares. The Goldman Sachs Group started coverage on shares of Builders FirstSource in a research note on Thursday, October 10th. They set a “buy” rating and a $225.00 price objective on the stock. 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. Royal Bank of Canada reduced their price objective on shares of Builders FirstSource from $193.00 to $178.00 and set an “outperform” rating on the stock in a research note on Wednesday, August 7th. UBS Group began coverage on shares of Builders FirstSource in a research note on Friday. They issued a “buy” rating and a $232.00 price target on the stock. Finally, Barclays lifted their price target on shares of Builders FirstSource from $182.00 to $211.00 and gave the company an “overweight” rating in a research note on Wednesday, October 9th. Four investment analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $200.35.

Builders FirstSource Stock Performance

The firm has a market capitalization of $21.02 billion, a price-to-earnings ratio of 14.81, a P/E/G ratio of 11.48 and a beta of 2.06. The stock’s fifty day moving average is $184.34 and its two-hundred day moving average is $168.76. 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 (NYSE:BLDR) last issued its earnings results on Tuesday, August 6th. The company reported $3.50 earnings per share for the quarter, topping analysts’ consensus estimates of $3.02 by $0.48. The business had revenue of $4.46 billion for 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% on a year-over-year basis. During the same period in the previous year, the company earned $3.89 earnings per share. On average, analysts predict that Builders FirstSource, Inc. will post 11.68 earnings per share for the current year.

Builders FirstSource declared that its Board of Directors has authorized a share buyback program on Tuesday, August 6th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 5.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Builders FirstSource

In other Builders FirstSource news, Director Craig Arthur Steinke sold 30,000 shares of the company’s 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. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Builders FirstSource

Institutional investors and hedge funds have recently modified their holdings of the stock. SG Americas Securities LLC increased its holdings in shares of Builders FirstSource by 273.0% in the first quarter. SG Americas Securities LLC now owns 62,622 shares of the company’s stock valued at $13,060,000 after purchasing an additional 45,832 shares during the last quarter. Cetera Investment Advisers boosted its position in shares of Builders FirstSource by 762.2% in the first quarter. Cetera Investment Advisers now owns 50,982 shares of the company’s stock valued at $10,632,000 after acquiring an additional 45,069 shares during the period. Janus Henderson Group PLC boosted its position in shares of Builders FirstSource by 21.1% in the first quarter. Janus Henderson Group PLC now owns 20,013 shares of the company’s stock valued at $4,173,000 after acquiring an additional 3,483 shares during the period. Forsta AP Fonden boosted its position in shares of Builders FirstSource by 12.1% in the third quarter. Forsta AP Fonden now owns 26,800 shares of the company’s stock valued at $5,195,000 after acquiring an additional 2,900 shares during the period. Finally, Raymond James Financial Services Advisors Inc. boosted its position in shares of Builders FirstSource by 18.6% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 115,995 shares of the company’s stock valued at $16,055,000 after acquiring an additional 18,223 shares during the period. 95.53% of the stock is currently owned by institutional investors and hedge funds.

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.