Short Interest in Builders FirstSource, Inc. (NYSE:BLDR) Rises By 11.0%

Builders FirstSource, Inc. (NYSE:BLDR) was the target of a large increase in short interest during the month of August. As of August 31st, there was short interest totalling 3,620,000 shares, an increase of 11.0% from the August 15th total of 3,260,000 shares. Currently, 3.2% of the company’s stock are short sold. Based on an average daily trading volume, of 1,780,000 shares, the days-to-cover ratio is presently 2.0 days.

Builders FirstSource Stock Performance

Shares of NYSE:BLDR traded up $2.09 during trading on Wednesday, reaching $195.98. 1,356,622 shares of the stock were exchanged, compared to its average volume of 1,611,538. The company has a current ratio of 1.83, a quick ratio of 1.14 and a debt-to-equity ratio of 0.88. The firm has a market cap of $23.92 billion, a PE ratio of 16.60, a PEG ratio of 10.06 and a beta of 2.06. The stock has a 50-day moving average price of $164.61 and a 200-day moving average price of $170.70. Builders FirstSource has a 12 month low of $105.24 and a 12 month high of $214.70.

Builders FirstSource (NYSE:BLDR) last released its quarterly earnings results on Tuesday, August 6th. The company reported $3.50 EPS for the quarter, beating the consensus estimate of $3.02 by $0.48. The business had revenue of $4.46 billion for the quarter, compared to the consensus estimate of $4.48 billion. Builders FirstSource had a net margin of 8.25% and a return on equity of 37.05%. Builders FirstSource’s revenue was down 1.6% compared to the same quarter last year. During the same period in the prior year, the company posted $3.89 earnings per share. Research analysts expect that Builders FirstSource will post 11.65 EPS for the current fiscal year.

Builders FirstSource announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, August 6th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to purchase up to 5.3% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. Wedbush reiterated an “outperform” rating and set a $175.00 target price on shares of Builders FirstSource in a report on Tuesday, August 6th. Zelman & Associates reiterated a “hold” rating on shares of Builders FirstSource in a research note on Monday, June 17th. Jefferies Financial Group restated a “buy” rating and set a $185.00 target price (down from $205.00) on shares of Builders FirstSource in a report on Friday, August 9th. Bank of America cut shares of Builders FirstSource from a “buy” rating to a “neutral” rating and cut their price target for the company from $183.00 to $180.00 in a research note on Friday, August 2nd. Finally, StockNews.com raised shares of Builders FirstSource from a “hold” rating to a “buy” rating in a research report on Tuesday. Four equities research analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $185.86.

Insider Activity at Builders FirstSource

In other news, Director Craig Arthur Steinke sold 30,000 shares of the business’s stock in a transaction on Thursday, August 8th. The shares were sold at an average price of $153.68, for a total value of $4,610,400.00. Following the sale, the director now owns 95,333 shares of the company’s stock, valued at $14,650,775.44. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 1.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Builders FirstSource

A number of large investors have recently added to or reduced their stakes in the stock. Allianz Asset Management GmbH increased its holdings in Builders FirstSource by 73.9% in the 4th quarter. Allianz Asset Management GmbH now owns 128,348 shares of the company’s stock valued at $21,426,000 after buying an additional 54,557 shares during the period. Boulder Hill Capital Management LP acquired a new position in Builders FirstSource during the fourth quarter valued at approximately $851,000. Westfield Capital Management Co. LP raised its position in Builders FirstSource by 11.2% during the fourth quarter. Westfield Capital Management Co. LP now owns 1,416,611 shares of the company’s stock valued at $236,489,000 after purchasing an additional 143,041 shares in the last quarter. New Mexico Educational Retirement Board lifted its stake in Builders FirstSource by 512.3% during the first quarter. New Mexico Educational Retirement Board now owns 39,800 shares of the company’s stock worth $8,300,000 after purchasing an additional 33,300 shares during the last quarter. Finally, Pitcairn Co. boosted its holdings in shares of Builders FirstSource by 37.2% in the 4th quarter. Pitcairn Co. now owns 21,051 shares of the company’s stock valued at $3,514,000 after purchasing an additional 5,704 shares in the last quarter. Institutional investors and hedge funds own 95.53% of the company’s stock.

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.