B. Riley Analysts Lower Earnings Projections for Builders FirstSource

On November 6th, 2024, B. Riley analysts reported a decrease in their earnings per share (EPS) estimates for Builders FirstSource, Inc. (NYSE:BLDR). Analyst A. Rygiel has revised the expected earnings for the fiscal year 2024 from $11.75 to $11.66 per share. Despite this adjustment, B. Riley maintains a “Buy” rating for the company's stock, with a price target set at $187.00. The consensus earnings estimate for Builders FirstSource for the current full year stands at $11.69 per share.

On November 5th, Builders FirstSource released its quarterly earnings report, revealing earnings of $3.07 per share for the quarter, slightly below analysts' expectations of $3.09 by $0.02. The company reported a return on equity of 37.05% and a net margin of 8.25%. Revenue for the quarter was $4.23 billion, which fell short of the anticipated $4.44 billion. In the same quarter last year, Builders FirstSource had earnings of $4.24 per share. This year’s quarterly revenue saw a decline of 6.7% compared to the same period in 2023.

In addition to B. Riley, other research firms have also expressed their views on Builders FirstSource. On October 25th, UBS Group initiated coverage with a “buy” rating and a price objective of $232.00. Wedbush reaffirmed an “outperform” rating with a price target of $230.00 on November 6th. Earlier, Goldman Sachs began coverage on October 10th, assigning a “buy” rating with a price target of $225.00. Truist Financial upgraded the stock from “hold” to “buy” on September 16th and increased their target price from $165.00 to $220.00. Barclays raised their price target from $182.00 to $211.00 and rated the stock as “overweight” on October 9th. Currently, the market depicts a favorable outlook for Builders FirstSource, with five analysts rating it as a hold, fourteen as a buy, and one as a strong buy. Data from MarketBeat.com reflects an average rating of “Moderate Buy” and an average target price of $206.47.

Builders FirstSource Stock Performance

As of Thursday morning, Builders FirstSource stock opened at $179.09. The company boasts a market capitalization of $20.86 billion, a price-to-earnings ratio of 15.72, a P/E/G ratio of 10.17, and a beta of 2.08. The stock has a fifty-day moving average of $184.71 and a two-hundred-day average of $168.52. Over the past year, the stock has experienced a low of $120.80 and a high of $214.70. Builders FirstSource maintains a debt-to-equity ratio of 0.88 and current and quick ratios of 1.83 and 1.14, respectively.

Additionally, Builders FirstSource’s board approved a significant share repurchase program on August 6th, allowing the company to repurchase up to $1.00 billion of outstanding shares, which indicates the board's belief that the stock is undervalued.

Institutional Investment Activity

Recently, several large institutional investors have made moves in the stock. Innealta Capital LLC purchased a new position valued at approximately $27,000 in the second quarter, while Armstrong Advisory Group Inc. made a similar investment of around $30,000 in the third quarter. ORG Partners LLC bought a stake in Builders FirstSource worth about $33,000 during the first quarter. First Horizon Advisors Inc. increased their position by 42.1% in the second quarter, and New Millennium Group LLC acquired new shares also in the second quarter valued at approximately $38,000. Currently, institutional investors control about 95.53% of Builders FirstSource’s stock.

About Builders FirstSource

Builders FirstSource, Inc. operates in the construction sector, providing building materials, manufactured components, and construction services primarily to professional homebuilders, subcontractors, remodelers, and consumers in the United States. The company offers a variety of products, including lumber, engineered wood products, windows, doors, and custom building products, serving as a key player in the construction industry.

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