Builders FirstSource (NYSE:BLDR) Shares Gap Down - Should You Sell?

Builders FirstSource, Inc. (NYSE:BLDR - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $184.80, but opened at $175.11. Builders FirstSource shares last traded at $171.51, with a volume of 233,187 shares trading hands.

Analyst Ratings Changes

BLDR has been the subject of a number of research reports. Barclays raised their target price on shares of Builders FirstSource from $182.00 to $211.00 and gave the company an "overweight" rating in a report on Wednesday, October 9th. B. Riley lowered their price target on shares of Builders FirstSource from $197.00 to $187.00 and set a "buy" rating for the company in a report on Wednesday, August 7th. The Goldman Sachs Group assumed coverage on Builders FirstSource in a research note on Thursday, October 10th. They set a "buy" rating and a $225.00 price objective on the stock. Loop Capital boosted their target price on Builders FirstSource from $190.00 to $230.00 and gave the company a "buy" rating in a research report on Friday, September 20th. Finally, Oppenheimer restated an "outperform" rating and issued a $225.00 price target on shares of Builders FirstSource in a research report on Tuesday. Four research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Builders FirstSource currently has an average rating of "Moderate Buy" and a consensus target price of $200.35.

Builders FirstSource Price Performance

The firm has a market capitalization of $20.95 billion, a price-to-earnings ratio of 14.69, a PEG ratio of 11.48 and a beta of 2.06. The company has a quick ratio of 1.14, a current ratio of 1.83 and a debt-to-equity ratio of 0.88. The stock's 50-day moving average price is $184.34 and its 200 day moving average price is $168.76.

Builders FirstSource (NYSE:BLDR - Get Free Report) last issued its earnings results on Tuesday, August 6th. The company reported $3.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.02 by $0.48. Builders FirstSource had a return on equity of 37.05% and a net margin of 8.25%. The company had revenue of $4.46 billion during the quarter, compared to analysts' expectations of $4.48 billion. During the same period in the prior year, the business earned $3.89 EPS. The firm's quarterly revenue was down 1.6% on a year-over-year basis. Equities research analysts expect that Builders FirstSource, Inc. will post 11.68 earnings per share for the current fiscal year.

Builders FirstSource announced that its board has approved a stock repurchase plan on Tuesday, August 6th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to reacquire up to 5.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

Insider Activity

In related news, Director Craig Arthur Steinke sold 30,000 shares of the business's stock in a transaction dated Thursday, August 8th. The shares were sold at an average price of $153.68, for a total transaction of $4,610,400.00. Following the sale, the director now owns 95,333 shares of the company's stock, valued at approximately $14,650,775.44. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Builders FirstSource

Institutional investors have recently added to or reduced their stakes in the business. Boston Partners lifted its stake in shares of Builders FirstSource by 0.8% in the first quarter. Boston Partners now owns 1,377,335 shares of the company's stock worth $285,794,000 after acquiring an additional 10,551 shares in the last quarter. Massachusetts Financial Services Co. MA grew its holdings in Builders FirstSource by 339.8% during the second quarter. Massachusetts Financial Services Co. MA now owns 1,180,358 shares of the company's stock worth $163,373,000 after acquiring an additional 911,990 shares during the period. Bank of New York Mellon Corp raised its position in Builders FirstSource by 22.7% in the second quarter. Bank of New York Mellon Corp now owns 1,062,488 shares of the company's stock worth $147,059,000 after acquiring an additional 196,571 shares in the last quarter. William Blair Investment Management LLC grew its stake in shares of Builders FirstSource by 1.2% in the 2nd quarter. William Blair Investment Management LLC now owns 1,051,461 shares of the company's stock worth $145,533,000 after purchasing an additional 12,518 shares during the last quarter. Finally, Anomaly Capital Management LP increased its holdings in shares of Builders FirstSource by 22.5% in the second quarter. Anomaly Capital Management LP now owns 1,020,441 shares of the company's stock valued at $141,239,000 after buying an additional 187,371 shares in the last quarter. 95.53% of the stock is currently owned by institutional investors and hedge funds.

Builders FirstSource Company Profile

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.