Builders FirstSource, Inc. (NYSE:BLDR) has received a consensus rating of “Moderate Buy” from fourteen research firms, according to Bloomberg reports. Out of the fourteen analysts covering the company, four have recommended holding the stock, while ten have given it a buy recommendation. This indicates a generally positive sentiment towards Builders FirstSource among industry experts.
The average 12-month target price among analysts who have issued ratings on the stock in the past year is $149.69, which suggests potential growth in the company’s share price.
On September 26, 2023, NYSE BLDR opened at $123.09. The company’s fifty-day moving average stands at $139.51, while its two-hundred-day moving average is $122.59. These figures provide insights into recent trends and indicate that Builders FirstSource has experienced some fluctuations in its stock value over time.
With a market capitalization of $15.39 billion and a beta of 2.02, Builders FirstSource demonstrates stability and resilience in the market. Moreover, it boasts a price-to-earnings ratio of 9.53, suggesting investors may find it an attractive option due to its relatively low valuation compared to its earnings.
Examining its financial health further reveals that Builders FirstSource has a debt-to-equity ratio of 0.85 which indicates moderate leverage. Additionally, the company possesses a current ratio of 1.84 and quick ratio of 1.15—both healthy indicators of its short-term liquidity position.
It is worth noting that both institutional investors and hedge funds have shown interest in Builders FirstSource recently. Some have increased their stakes in the company while others have reduced them accordingly.
For instance, BOKF NA acquired new shares during Q1 valued at approximately $27,000, showcasing their confidence in Builders FirstSource’s potential growth prospects. Meanwhile, UMB Bank n.a., another institutional investor, also purchased shares during the first quarter, worth around $28,000. These moves reinforce the positive sentiment surrounding the company.
Moreover, Massmutual Trust Co. FSB ADV expanded their holdings in Builders FirstSource by 179.0% during Q1 and currently owns 332 shares valued at $29,000. Similarly, Bessemer Group Inc. raised its stake by 93.6% in Q2 and now holds 242 shares worth $33,000.
Lastly, Financial Management Professionals Inc., recorded a significant increase of 1,447.1% in its holdings during Q2—now owning 263 shares of Builders FirstSource valued at $36,000. Collectively, institutional investors own approximately 94.73% of the stock.
Builders FirstSource reported its quarterly earnings results on August 2nd with impressive performance. The company exceeded expectations by posting an EPS of $3.89 for the quarter—a $1.20 beat compared to the consensus estimate of $2.69 EPS. This indicates strong financial management and operational efficiency within the organization.
Additionally, Builders FirstSource achieved a return on equity of 45.73% and a net margin of 10.04%, further emphasizing its profitability and ability to generate returns for shareholders even during challenging economic conditions.
Furthermore, the company’s revenue for the quarter stood at $4.50 billion—an improvement compared to analysts’ projections of $4.24 billion—an impressive feat considering that revenues were down by 35% year-over-year for the same period.
Looking forward, equities research analysts anticipate that Builders FirstSource will continue to perform well with projected earnings per share (EPS) expected to be around $13.69 for this year.
In conclusion, it is evident that Builders FirstSource has garnered positive attention from industry experts with a “Moderate Buy” consensus rating from fourteen research firms covering the stock. The company’s recently reported earnings, healthy financial ratios, and interest from institutional investors further reinforce its potential for long-term growth and profitability. Investors should keep a close eye on Builders FirstSource as it continues to expand in the construction industry.
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Analysts and Insiders Show Optimism for Builders FirstSource’s Future Performance
Builders FirstSource (BLDR) has recently captured the attention of various analysts, with several reports shedding light on the company’s performance and potential. Wedbush, in particular, has reissued an “outperform” rating for Builders FirstSource and designated a price target of $175.00 in its report released on Thursday, August 3rd. This affirmation from Wedbush indicates a positive outlook for the company’s future prospects.
Moreover, Benchmark has expressed its optimism towards Builders FirstSource by raising their price target from $153.00 to $220.00. The research note provided by Benchmark also labeled the stock as a “buy,” suggesting that there is significant potential for growth and value appreciation.
Adding to this growing sentiment, Loop Capital recently initiated coverage on Builders FirstSource with a “buy” rating and set a target price of $180.00 for the company. This further strengthens the argument that Builders FirstSource is viewed favorably by industry experts.
Furthermore, Royal Bank of Canada (RBC) boosted their price target on the company’s shares from $162.00 to $188.00 and assigned an “outperform” rating. RBC’s positive evaluation underscores confidence in Builders FirstSource and signifies an endorsement of its overall performance.
Stephens has also expressed its bullishness towards Builders FirstSource by raising its target price for the stock from $130.00 to $175.00, while maintaining an “overweight” rating for the company. This indicates that Stephens expects Builders FirstSource to outperform market expectations.
In addition to analyst reports, recent news regarding insider trading activities at Builders FirstSource have also caught investors’ attention. EVP Timothy D. Johnson sold 5,000 shares of BLDR stock on Monday, August 7th at an average price of $151.69 per share, generating total proceeds amounting to $758,450.
Following this transaction, Johnson now holds 65,748 shares of Builders FirstSource’s stock, which are valued at approximately $9,973,314.12. Another insider, Michael Hiller, also participated in selling the company’s shares. He sold 5,965 shares on Monday, August 14th at an average price of $147.91 per share.
The disclosure by insiders Timothy D. Johnson and Michael Hiller can be found on the website of the Securities & Exchange Commission (SEC), containing essential information for investors interested in tracking developments within Builders FirstSource.
It is pertinent to note that approximately 1.90% of Builders FirstSource’s stock is owned by insiders, reinforcing their belief in the company and its future prospects.
Builders FirstSource operates within a dynamic industry and has been pivotal in providing essential supplies to the construction sector. These reports from analysts signify positive sentiments towards the company’s performance in recent times and serve as encouraging indicators for potential investors seeking growth opportunities in this industry.
Investors are advised to conduct their own due diligence before making any investment decisions regarding Builders FirstSource stock.
