Builders FirstSource, Inc.

(New York Stock Exchange)
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Somewhat Bearish -35

Builders FirstSource, Inc. (NYSE:BLDR) Given Average Recommendation of ...

AI-generated analysis

πŸ“Š Analysts maintain an average 'Hold' recommendation for Builders FirstSource with a consensus twelve-month price target of $101.45.

πŸ“‰ Multiple major institutions including Benchmark, Robert W. Baird, Goldman Sachs, and Deutsche Bank recently lowered their price targets on the stock.

πŸ’° The company reported quarterly EPS of $0.27, missing analyst consensus estimates of $0.39 by $0.12.

πŸ“ˆ Revenue for the quarter reached $3.29 billion, slightly exceeding the consensus estimate of $3.17 billion.

πŸ“‰ Year-over-year revenue declined by 10.1% during the reported quarter.

πŸ’΅ The company declared a new share buyback plan authorizing the repurchase of up to $500 million in outstanding shares.

πŸ—οΈ Builders FirstSource supplies structural and value-added building products including lumber, windows, doors, and engineered wood products.

πŸ“‰ The stock trades at a P/E ratio of 29.97 with a market capitalization of $8.41 billion.

πŸ“‰ Shares opened at $78.23 on Friday, trading below the 200-day moving average of $92.59.

Bullish Signals
  • Revenue of $3.29 billion beat analyst consensus estimates of $3.17 billion.
  • The Board of Directors authorized a $500 million share buyback plan, indicating confidence in the stock's valuation.
  • Return on equity stands at 14.89%.
Risk Factors
  • EPS of $0.27 missed analyst consensus estimates of $0.39 by $0.12.
  • Year-over-year revenue declined by 10.1%.
  • Recent price target cuts from Benchmark, Robert W. Baird, Goldman Sachs, Deutsche Bank, and KeyCorp suggest near-term downside pressure.
Full Analysis
Builders FirstSource, Inc. (NYSE:BLDR) recently received an average analyst recommendation of 'Hold' based on coverage from twenty-three analysts. The consensus twelve-month price target stands at $101.45, though recent activity shows mixed sentiment with three sell ratings, twelve hold ratings, and eight buy ratings. Notably, several major institutions including Benchmark, Robert W. Baird, Goldman Sachs, Deutsche Bank, and KeyCorp lowered their individual price targets on the stock in early May. The company reported its quarterly earnings on April 30th, posting EPS of $0.27 which missed analyst consensus estimates of $0.39 by $0.12. Despite the earnings miss, revenue came in at $3.29 billion, slightly beating the consensus estimate of $3.17 billion. However, year-over-year revenue declined by 10.1%, and the company reported a net margin of 1.97% with a return on equity of 14.89%. The stock currently trades at a P/E ratio of 29.97. In response to market conditions, Builders FirstSource's Board of Directors authorized a new share buyback plan on April 30th, permitting the repurchase of up to $500 million in outstanding shares, which represents approximately 5.4% of its total share count. This initiative signals management's belief that the stock is undervalued. The company operates as a leading supplier of structural building products and services to professional contractors and homebuilders.