Builders FirstSource (BLDR) Shares Gap Up After Strong Earnings

Shares of Builders FirstSource, Inc. (NASDAQ:BLDR) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $12.16, but opened at $13.08. Builders FirstSource shares last traded at $14.58, with a volume of 5557500 shares changing hands.

The company reported $0.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.59 by $0.08. The firm had revenue of $2.12 billion for the quarter, compared to analysts’ expectations of $2.08 billion. Builders FirstSource had a net margin of 1.03% and a return on equity of 44.19%. The business’s revenue was up 12.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.39 EPS.

Several analysts have recently issued reports on the stock. BidaskClub cut shares of Builders FirstSource from a “sell” rating to a “strong sell” rating in a research report on Saturday, July 14th. Wedbush upped their target price on shares of Builders FirstSource from $27.00 to $30.00 and gave the company an “outperform” rating in a research report on Tuesday, July 17th. Zacks Investment Research upgraded shares of Builders FirstSource from a “hold” rating to a “buy” rating and set a $20.00 target price on the stock in a research report on Monday, July 16th. ValuEngine upgraded shares of Builders FirstSource from a “sell” rating to a “hold” rating in a research report on Tuesday, July 31st. Finally, Stephens set a $21.00 target price on shares of Builders FirstSource and gave the company a “buy” rating in a research report on Monday, August 6th. Three 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 target price of $21.31.

In other news, Director Paul S. Levy acquired 100,000 shares of Builders FirstSource stock in a transaction that occurred on Thursday, September 6th. The shares were bought at an average cost of $15.98 per share, with a total value of $1,598,000.00. Following the transaction, the director now directly owns 1,117,984 shares of the company’s stock, valued at approximately $17,865,384.32. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Robert C. Griffin sold 16,756 shares of the 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 sale, the director now directly owns 30,104 shares in the company, valued at $516,283.60. The disclosure for this sale can be found here. Corporate insiders own 2.30% of the company’s stock.

Institutional investors have recently bought and sold shares of the stock. Putnam Investments LLC purchased a new position in shares of Builders FirstSource during the second quarter worth approximately $6,936,000. Lonestar Capital Management LLC increased its position in shares of Builders FirstSource by 5.3% during the second quarter. Lonestar Capital Management LLC now owns 1,000,000 shares of the company’s stock worth $18,290,000 after acquiring an additional 50,000 shares during the period. Schwab Charles Investment Management Inc. increased its position in shares of Builders FirstSource by 26.1% during the second quarter. Schwab Charles Investment Management Inc. now owns 818,836 shares of the company’s stock worth $14,977,000 after acquiring an additional 169,325 shares during the period. Principal Financial Group Inc. increased its position in shares of Builders FirstSource by 7.4% during the first quarter. Principal Financial Group Inc. now owns 81,790 shares of the company’s stock worth $1,623,000 after acquiring an additional 5,610 shares during the period. Finally, Royal Bank of Canada increased its position in shares of Builders FirstSource by 140.2% during the first quarter. Royal Bank of Canada now owns 10,965 shares of the company’s stock worth $218,000 after acquiring an additional 6,401 shares during the period. 91.59% of the stock is currently owned by institutional investors.

The stock has a market capitalization of $1.42 billion, a P/E ratio of 11.48, a P/E/G ratio of 1.38 and a beta of 1.93. The company has a debt-to-equity ratio of 4.23, a quick ratio of 1.12 and a current ratio of 2.04.

Builders FirstSource Company Profile (NASDAQ:BLDR)

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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