Builders FirstSource, Inc.

(New York Stock Exchange)
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Somewhat Bearish -25

Public Employees Retirement System of Ohio Makes New $2.67 Million Investment in Builders FirstSource, Inc. $BLDR - MarketBeat

AI-generated analysis

πŸ›οΈ Public Employees Retirement System of Ohio purchased $2.67 million worth of BLDR shares in the second quarter.

πŸ“‰ Builders FirstSource reported quarterly EPS of $1.17, missing analyst estimates by $0.08.

πŸ’° Revenue fell 8.8% year over year to $3.86 billion, trailing expectations of $3.91 billion.

🏦 Institutional ownership stands at 95.53%, with multiple hedge funds adding new stakes recently.

πŸ“Š The stock trades at a PE ratio of 72.24 with a market capitalization of $7.07 billion.

🎯 Analysts maintain a consensus 'Hold' rating with an average price target of $90.35.

πŸ“‰ Oppenheimer, UBS, and Stifel recently lowered their price targets following the earnings miss.

πŸ—οΈ The company supplies structural building products to professional contractors and homebuilders.

πŸ“‰ BLDR opened at $65.74, trading well below its 52-week high of $151.03.

πŸ” MarketBeat lists five alternative stocks as better buys than Builders FirstSource currently.

Bullish Signals
  • Public Employees Retirement System of Ohio and several other institutional investors, including Littlejohn & Co. LLC and Hauser Brothers GmbH, established new positions in the company during the second quarter.
  • The company maintains a strong balance sheet with a current ratio of 1.79 and a quick ratio of 1.09.
Risk Factors
  • Builders FirstSource missed quarterly earnings estimates by $0.08 per share, reporting $1.17 EPS against a consensus of $1.25.
  • Revenue declined 8.8% year over year to $3.86 billion, failing to meet analyst expectations of $3.91 billion.
  • Major analysts including Oppenheimer, UBS, and Stifel recently decreased their price targets following the disappointing earnings report.
  • The stock is trading at a high PE ratio of 72.24 while significantly below its 52-week high of $151.03.
Full Analysis
Public Employees Retirement System of Ohio (PERS) increased its stake in Builders FirstSource, Inc. (BLDR) by purchasing 29,865 shares worth approximately $2.67 million during the second quarter. This transaction contributes to a high level of institutional ownership, with funds now controlling 95.53% of the company's outstanding stock. Builders FirstSource reported mixed financial results for the quarter ended July 30, posting earnings per share of $1.17, which missed analyst estimates by $0.08. Revenue declined 8.8% year over year to $3.86 billion, falling short of the consensus expectation of $3.91 billion. The company reported a net margin of 0.71% and a return on equity of 11.73%. Wall Street sentiment remains cautious with a consensus 'Hold' rating and an average price target of $90.35, significantly above the current trading price of roughly $65.74. Major analysts including Oppenheimer, UBS, and Stifel have recently lowered their price targets following the earnings miss, though ratings vary from 'Buy' to 'Sell'. The article notes that several other institutional investors, including Littlejohn & Co. LLC and Hauser Brothers GmbH, also established new positions in BLDR during the second quarter. Despite these inflows, MarketBeat suggests there are five alternative stocks currently preferred by top analysts over Builders FirstSource.