Stock Traders Buy High Volume of Call Options on Builders FirstSource (BLDR)

Builders FirstSource, Inc. (NASDAQ:BLDR) was the target of some unusual options trading on Wednesday. Investors acquired 8,595 call options on the stock. This is an increase of approximately 3,670% compared to the average daily volume of 228 call options.

NASDAQ:BLDR opened at $13.08 on Friday. The company has a debt-to-equity ratio of 4.23, a current ratio of 2.04 and a quick ratio of 1.12. Builders FirstSource has a 1-year low of $11.60 and a 1-year high of $23.28. The firm has a market capitalization of $1.44 billion, a P/E ratio of 10.30, a P/E/G ratio of 1.40 and a beta of 2.01.

Builders FirstSource (NASDAQ:BLDR) last released its quarterly earnings results on Tuesday, August 7th. The company reported $0.54 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.56 by ($0.02). Builders FirstSource had a net margin of 1.03% and a return on equity of 44.19%. The company had revenue of $2.09 billion during the quarter, compared to analyst estimates of $2.06 billion. Research analysts expect that Builders FirstSource will post 1.79 EPS for the current fiscal year.

Several research analysts recently weighed in on the company. BidaskClub cut Builders FirstSource from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 14th. TheStreet cut Builders FirstSource from a “b-” rating to a “c+” rating in a research note on Thursday, October 25th. Zacks Investment Research cut Builders FirstSource from a “buy” rating to a “hold” rating in a research note on Monday, August 6th. Stephens set a $21.00 target price on Builders FirstSource and gave the company a “buy” rating in a research note on Monday, August 6th. Finally, ValuEngine cut Builders FirstSource from a “hold” rating to a “sell” rating in a research note on Tuesday, August 7th. Three research analysts have rated the stock with a sell rating, four have issued a hold rating and eight have given a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $21.31.

In related news, Director Robert C. Griffin sold 16,756 shares of the firm’s stock in a transaction dated Friday, August 10th. The stock was sold at an average price of $17.15, for a total transaction of $287,365.40. Following the completion of the transaction, the director now owns 30,104 shares of the company’s stock, valued at $516,283.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director David Barr bought 60,000 shares of the firm’s stock in a transaction that occurred on Friday, August 31st. The shares were purchased at an average cost of $15.63 per share, with a total value of $937,800.00. Following the purchase, the director now directly owns 79,496 shares of the company’s stock, valued at $1,242,522.48. The disclosure for this purchase can be found here. Company insiders own 2.30% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. Mount Yale Investment Advisors LLC acquired a new position in shares of Builders FirstSource in the 1st quarter valued at $104,000. NumerixS Investment Technologies Inc boosted its position in shares of Builders FirstSource by 229.8% in the 2nd quarter. NumerixS Investment Technologies Inc now owns 5,600 shares of the company’s stock valued at $101,000 after purchasing an additional 3,902 shares during the period. Royal Bank of Canada boosted its position in shares of Builders FirstSource by 140.2% in the 1st quarter. Royal Bank of Canada now owns 10,965 shares of the company’s stock valued at $218,000 after purchasing an additional 6,401 shares during the period. Cubist Systematic Strategies LLC boosted its position in shares of Builders FirstSource by 109.5% in the 1st quarter. Cubist Systematic Strategies LLC now owns 13,123 shares of the company’s stock valued at $260,000 after purchasing an additional 6,858 shares during the period. Finally, Engineers Gate Manager LP acquired a new position in shares of Builders FirstSource in the 3rd quarter valued at $194,000. Institutional investors and hedge funds own 91.59% of the company’s stock.

About Builders FirstSource

Builders FirstSource, Inc manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. The company operates through four segments: Northeast, Southeast, South, and West. Its products include lumber and lumber sheet goods comprising dimensional lumber, plywood, and OSB products that are used in on-site house framing; and windows, and interior and exterior door units, as well as interior trims and custom products under the Synboard brand.

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