Builders FirstSource, Inc.

(New York Stock Exchange)
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Slightly Bearish -15

Builders FirstSource, Inc. (NYSE:BLDR) Given Consensus Rating of "Hold" by Analysts - MarketBeat

AI-generated analysis

πŸ“‰ Builders FirstSource reported Q2 EPS of $1.17, missing the $1.25 consensus estimate by $0.08.

πŸ’° Revenue fell 8.8% year-over-year to $3.86 billion, also missing the $3.91 billion consensus.

πŸ“Š The stock opened at $65.74, trading well below the average 12-month analyst price target of $90.35.

πŸ† Analysts hold a consensus 'Hold' rating with 13 holds, 9 buys, and 3 sells among twenty-five covers.

πŸ“‰ UBS Group lowered its price target from $122.00 to $88.00 while reaffirming a 'buy' rating.

πŸ›οΈ Institutional ownership is high at 95.53%, led by major players like California State Teachers Retirement System and BlackRock.

πŸ“ˆ California State Teachers Retirement System increased its stake significantly, adding over 11 million shares in Q2.

πŸ”§ The company maintains a healthy liquidity profile with a quick ratio of 1.09 and current ratio of 1.79.

πŸ“‰ The stock trades at a P/E ratio of 72.24, reflecting high valuation multiples relative to current earnings.

πŸ“‰ Builders FirstSource has a beta of 1.41, indicating higher volatility than the broader market.

Bullish Signals
  • Institutional ownership remains substantial at 95.53%, with major investors like California State Teachers Retirement System and BlackRock increasing or maintaining significant positions.
  • The company maintains a strong balance sheet with a quick ratio of 1.09 and a current ratio of 1.79, indicating good short-term liquidity.
  • Despite the recent earnings miss, the average 12-month price target of $90.35 suggests analysts see significant upside potential from the current trading levels.
Risk Factors
  • The company missed quarterly EPS expectations by $0.08 and revenue fell 8.8% year-over-year to $3.86 billion.
  • UBS Group recently lowered its price target from $122.00 to $88.00, reflecting concerns about near-term performance.
  • The stock trades at a high P/E ratio of 72.24, which may limit upside if earnings do not improve rapidly.
Full Analysis
Builders FirstSource, Inc. (NYSE:BLDR) recently reported quarterly earnings that missed analyst expectations, with EPS of $1.17 versus the consensus of $1.25 and revenue declining 8.8% year-over-year to $3.86 billion. The company's net margin was 0.71% and return on equity stood at 11.73%, reflecting a challenging operating environment for this leading supplier of structural building products to professional contractors and homebuilders. Wall Street sentiment remains mixed, with a consensus rating of 'Hold' derived from twenty-five analysts covering the stock. The average 12-month price target is $90.35, significantly above the reported opening price of $65.74. Analyst actions have been varied, including UBS Group lowering its price target to $88.00 while maintaining a 'buy' rating, and Citizens Jmp initiating coverage with a 'market perform' rating. Institutional ownership remains substantial at 95.53%, with major investors like California State Teachers Retirement System and BlackRock making significant position changes in the second quarter. The stock trades with a market cap of $7.07 billion, a P/E ratio of 72.24, and a beta of 1.41, indicating higher volatility relative to the broader market. Despite the recent earnings miss and mixed analyst ratings, the company maintains a strong balance sheet with a quick ratio of 1.09 and a current ratio of 1.79. The substantial institutional interest suggests confidence in the long-term fundamentals of the residential construction supply chain, even as short-term headwinds impact quarterly performance.