Builders FirstSource (NYSE:BLDR) Shares Gap Up - Should You Buy?

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $154.25, but opened at $165.81. Builders FirstSource shares last traded at $163.07, with a volume of 1,140,103 shares.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on BLDR shares. Barclays increased their target price on shares of Builders FirstSource from $182.00 to $211.00 and gave the company an "overweight" rating in a research report on Wednesday, October 9th. Oppenheimer restated an "outperform" rating and set a $225.00 price objective on shares of Builders FirstSource in a report on Tuesday, October 29th. The Goldman Sachs Group started coverage on Builders FirstSource in a report on Thursday, October 10th. They set a "buy" rating and a $225.00 price target on the stock. Robert W. Baird raised their price objective on Builders FirstSource from $190.00 to $222.00 and gave the stock an "outperform" rating in a research report on Wednesday, October 16th. Finally, Stifel Nicolaus reissued a "buy" rating and issued a $175.00 price target on shares of Builders FirstSource in a research report on Wednesday, January 8th. Four research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $208.75.

Builders FirstSource Stock Performance

The company has a quick ratio of 1.16, a current ratio of 1.77 and a debt-to-equity ratio of 0.83. The stock has a fifty day simple moving average of $164.95 and a 200-day simple moving average of $169.20. The company has a market capitalization of $18.57 billion, a P/E ratio of 15.76, a PEG ratio of 0.96 and a beta of 2.11.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its quarterly earnings results on Tuesday, November 5th. The company reported $3.07 earnings per share for the quarter, missing analysts' consensus estimates of $3.09 by ($0.02). Builders FirstSource had a net margin of 7.40% and a return on equity of 33.55%. The company had revenue of $4.23 billion during the quarter, compared to analyst estimates of $4.44 billion. During the same period in the prior year, the business earned $4.24 EPS. The business's revenue for the quarter was down 6.7% on a year-over-year basis. Equities analysts forecast that Builders FirstSource, Inc. will post 11.55 EPS for the current year.

Insider Activity at Builders FirstSource

In other news, Director Cleveland A. Christophe sold 10,000 shares of the firm's stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $178.41, for a total transaction of $1,784,100.00. Following the sale, the director now owns 33,083 shares of the company's stock, valued at $5,902,338.03. This trade represents a 23.21 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Brooklyn Investment Group bought a new position in Builders FirstSource during the 3rd quarter worth about $28,000. Armstrong Advisory Group Inc. acquired a new stake in Builders FirstSource in the 3rd quarter valued at approximately $30,000. Reston Wealth Management LLC bought a new stake in Builders FirstSource in the 3rd quarter valued at approximately $39,000. Brown Brothers Harriman & Co. acquired a new position in Builders FirstSource during the 3rd quarter worth approximately $46,000. Finally, Mather Group LLC. grew its stake in shares of Builders FirstSource by 340.7% during the 3rd quarter. Mather Group LLC. now owns 260 shares of the company's stock worth $50,000 after acquiring an additional 201 shares in the last quarter. Institutional investors own 95.53% of the company's stock.

About Builders FirstSource

Builders FirstSource, Inc, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.