Builders FirstSource (NYSE:BLDR) Stock Rating Lowered by Zacks Research

Builders FirstSource (NYSE:BLDR) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Thursday,Zacks.com reports.

A number of other brokerages have also weighed in on BLDR. Royal Bank Of Canada restated a “sector perform” rating and issued a $111.00 target price on shares of Builders FirstSource in a research note on Friday, January 9th. Loop Capital decreased their price objective on shares of Builders FirstSource from $145.00 to $140.00 in a research report on Friday, October 31st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Builders FirstSource in a research report on Wednesday, January 21st. Jefferies Financial Group boosted their price target on shares of Builders FirstSource from $110.00 to $112.00 and gave the stock a “hold” rating in a research note on Monday, January 26th. Finally, BMO Capital Markets dropped their price objective on shares of Builders FirstSource from $123.00 to $120.00 and set a “market perform” rating for the company in a report on Friday. Eight analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $129.02.

Builders FirstSource Stock Performance

Builders FirstSource stock opened at $110.38 on Thursday. Builders FirstSource has a 1-year low of $94.35 and a 1-year high of $151.03. The company has a current ratio of 1.86, a quick ratio of 1.15 and a debt-to-equity ratio of 1.02. The firm has a market capitalization of $12.21 billion, a PE ratio of 28.45, a price-to-earnings-growth ratio of 14.32 and a beta of 1.56. The firm’s 50 day simple moving average is $114.70 and its 200 day simple moving average is $120.26.

Builders FirstSource (NYSE:BLDR) last released its quarterly earnings results on Tuesday, February 17th. The company reported $1.12 EPS for the quarter, missing analysts’ consensus estimates of $1.30 by ($0.18). Builders FirstSource had a net margin of 2.87% and a return on equity of 17.89%. The firm had revenue of $3.36 billion for the quarter, compared to analysts’ expectations of $3.46 billion. During the same quarter last year, the firm earned $2.31 earnings per share. The firm’s revenue for the quarter was down 12.1% on a year-over-year basis. As a group, analysts expect that Builders FirstSource will post 11.59 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Builders FirstSource

Several institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp lifted its stake in Builders FirstSource by 2.3% in the fourth quarter. State Street Corp now owns 5,108,120 shares of the company’s stock worth $525,574,000 after purchasing an additional 115,857 shares during the last quarter. Capital International Investors bought a new stake in shares of Builders FirstSource in the 3rd quarter valued at about $429,640,000. Wellington Management Group LLP boosted its holdings in Builders FirstSource by 2.3% during the 4th quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company’s stock valued at $341,265,000 after acquiring an additional 73,835 shares during the period. Geode Capital Management LLC grew its position in Builders FirstSource by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 2,817,958 shares of the company’s stock worth $288,789,000 after acquiring an additional 14,420 shares during the last quarter. Finally, Sands Capital Management LLC grew its position in Builders FirstSource by 13.5% during the 4th quarter. Sands Capital Management LLC now owns 2,757,969 shares of the company’s stock worth $283,767,000 after acquiring an additional 327,067 shares during the last quarter. Institutional investors own 95.53% of the company’s stock.

Builders FirstSource News Roundup

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Benchmark cut its target but kept a Buy rating, leaving a sizable ~25% upside vs. the current share price, which supports upside potential if fundamentals stabilize. Benchmark keeps Buy, lowers PT to $138
• Positive Sentiment: Barclays lowered its PT to $124 but maintained an Overweight rating, implying continued analyst conviction that shares have mid‑teens upside if housing demand improves. Barclays lowers PT to $124, keeps Overweight
• Positive Sentiment: Company commentary/press coverage highlights that management is balancing a tough Q4 with a solid 2025 outlook, which could support medium‑term recovery if volumes and margins improve. Builders FirstSource balances Q4 hit with solid 2025
• Neutral Sentiment: BMO trimmed its PT to $120 and kept a Market Perform rating, signaling limited near‑term upside from their view. BMO lowers PT to $120, Market Perform
• Neutral Sentiment: RBC and Bank of America-related notes reiterated Hold/Hold-like stances (RBC hold; BofA hold with $123 PT), reflecting a mixed/valuations-driven view rather than outright bullishness. RBC Hold on BLDR BofA reiterates Hold
• Negative Sentiment: Analyst downgrades/pessimistic notes from Stephens and Robert W. Baird raise downside risk in the near term by lowering investor expectations for revenue/earnings recovery. Stephens issues pessimistic forecast Robert W. Baird lowers expectations
• Negative Sentiment: Q4 coverage and the earnings call highlight declining volumes and cost controls as defining the quarter — the operational weakness and revenue miss are the clearest near‑term negative drivers for the stock. Deep dive: declining volumes and cost controls Q4 earnings call transcript

About Builders FirstSource

Builders FirstSource, Inc is a leading supplier of structural and value-added building products and services to professional contractors, homebuilders and remodelers. The company provides a comprehensive range of materials and prefabricated components that support all phases of residential construction, from site development and framing to finishing and installation.

The company’s core offerings include lumber and lumber sheet goods, windows and doors, millwork, roofing and siding, and engineered wood products such as roof and floor trusses.