Benchmark Issues Pessimistic Forecast for Builders FirstSource (NYSE:BLDR) Stock Price

On February 23, 2025, investment analysts at Benchmark lowered their price target for Builders FirstSource (NYSE:BLDR) from $200.00 to $170.00. Despite this reduction, the firm maintains a “buy” rating for the stock. The new target price indicates a potential upside of approximately 23.96% based on the stock's current price.

In recent weeks, various equity research analysts have shared their thoughts on Builders FirstSource. For instance, Wedbush reiterated an “outperform” rating while setting a price target of $230.00 for the shares in a report dated December 18, 2024. Additionally, the Royal Bank of Canada increased its price target for Builders FirstSource from $178.00 to $187.00, also awarding the stock an “outperform” rating on November 6, 2024. Conversely, StockNews.com downgraded the shares from a “buy” to a “hold” rating on January 13, 2025. Stifel Nicolaus reaffirmed a “buy” rating and set a target price of $175.00 on January 8, 2025. Raymond James also reiterated an “outperform” rating but lowered its target price to $170.00, down from $180.00. Overall, while four analysts rate the stock as a hold, fifteen assign a buy rating, and one rates it as a strong buy. According to MarketBeat, the consensus rating for Builders FirstSource is “Moderate Buy,” with an average price target of $196.88.

Recent Stock Performance

On the same day, Builders FirstSource shares opened at $137.14. The company reports a debt-to-equity ratio of 0.86 and maintains a current ratio of 1.77 and a quick ratio of 1.16. Its market capitalization stands at $15.78 billion, with a price-to-earnings (P/E) ratio of 15.14 and a P/E to growth (P/E/G) ratio of 0.80. The stock has seen a beta of 2.12. Over the past few months, Builders FirstSource has maintained a 50-day simple moving average of $154.21 and a 200-day simple moving average of $170.63. Currently, the stock has fluctuated between a fifty-two week low of $130.75 and a high of $214.70.

Financial Results

Builders FirstSource recently reported its earnings on February 20, 2025, revealing an earnings per share (EPS) of $2.31 for the quarter. This result surpassed the analysts’ consensus estimate of $2.18 by $0.13. The company achieved a net margin of 6.57% and a return on equity of 30.54%. Revenue for the quarter was reported at $3.82 billion, slightly short of the expected $3.90 billion. Analysts predict that Builders FirstSource will report earnings of 11.59 per share for the current fiscal year.

Institutional Investments and Changes

Recent institutional activity has seen several investors adjust their positions in Builders FirstSource. AMF Tjanstepension AB bought a new stake in the company valued at approximately $1.47 million in the third quarter. Creative Planning increased its holdings by 35.6%, now owning 12,963 shares worth $2.51 million after acquiring an additional 3,406 shares. Sequoia Financial Advisors also entered the picture by purchasing a new stake valued at about $539,000 in the third quarter. Other institutions like Signaturefd LLC and Greenleaf Trust also increased their stakes, revealing active interest from institutional investors, with 95.53% of the shares currently held by such entities.

Company Overview

Builders FirstSource, Inc. operates as a manufacturer and supplier of building materials and related components. It serves various sectors, including professional homebuilders, subcontractors, remodelers, and individual consumers throughout the United States. Builders FirstSource provides an array of products, including dimensional lumber, plywood, engineered wood products, and custom building solutions under the Synboard brand, which includes doors, windows, and intricate mouldings.

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