Builders Firstsource Inc (BLDR) vs. Its Peers: A Comparison

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Builders Firstsource Inc (NYSE: BLDR) has a price-to-earnings ratio of 14.45x that is above its average ratio. Additionally, the 36-month beta value for BLDR is 2.06. There are mixed opinions on the stock, with 4 analysts rating it as a “buy,” 4 rating it as “overweight,” 2 rating it as “hold,” and 0 rating it as “sell.”

The public float for BLDR is 114.19M and currently, short sellers hold a 2.86% ratio of that float. The average trading volume of BLDR on September 11, 2024 was 1.79M shares.

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BLDR) stock’s latest price update

The stock price of Builders Firstsource Inc (NYSE: BLDR) has dropped by -3.76 compared to previous close of 170.96. Despite this, the company has seen a fall of -2.57% in its stock price over the last five trading days. seekingalpha.com reported 2024-09-11 that BLDR’s strategy is to continue to make acquisitions, have a strong balance sheet, buyback shares, and generate high free cash flow. The company is using significant cash flow to repurchase shares, retiring roughly 40% of shares over the past 3 years. Management is transforming the business from a non-value-added seller of housing materials to a value-added housing supplier.

BLDR’s Market Performance

BLDR’s stock has fallen by -2.57% in the past week, with a monthly rise of 7.33% and a quarterly rise of 14.67%. The volatility ratio for the week is 3.18% while the volatility levels for the last 30 days are 3.23% for Builders Firstsource Inc The simple moving average for the past 20 days is -2.46% for BLDR’s stock, with a -2.82% simple moving average for the past 200 days.

Analysts’ Opinion of BLDR

Many brokerage firms have already submitted their reports for BLDR stocks, with Robert W. Baird repeating the rating for BLDR by listing it as a “Outperform.” The predicted price for BLDR in the upcoming period, according to Robert W. Baird is $190 based on the research report published on August 07, 2024 of the current year 2024.

BofA Securities, on the other hand, stated in their research note that they expect to see BLDR reach a price target of $180, previously predicting the price at $183. The rating they have provided for BLDR stocks is “Neutral” according to the report published on August 02nd, 2024.

BofA Securities gave a rating of “Buy” to BLDR, setting the target price at $200 in the report published on January 29th of the current year.

BLDR Trading at 3.49% from the 50-Day Moving Average

After a stumble in the market that brought BLDR to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -23.37% of loss for the given period.

Volatility was left at 3.23%, however, over the last 30 days, the volatility rate increased by 3.18%, as shares surge +1.88% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +22.34% upper at present.

During the last 5 trading sessions, BLDR fell by -2.93%, which changed the moving average for the period of 200-days by +22.81% in comparison to the 20-day moving average, which settled at $168.83. In addition, Builders Firstsource Inc saw -1.44% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at BLDR starting from Steinke Craig Arthur, who sale 30,000 shares at the price of $153.68 back on Aug 08 ’24. After this action, Steinke Craig Arthur now owns 95,333 shares of Builders Firstsource Inc, valued at $4,610,400 using the latest closing price.

Steinke Craig Arthur, the Director of Builders Firstsource Inc, proposed sale 30,000 shares at $153.68 during a trade that took place back on Aug 08 ’24, which means that Steinke Craig Arthur is holding shares at $4,610,379 based on the most recent closing price.

Stock Fundamentals for BLDR

Current profitability levels for the company are sitting at:

  • 0.12 for the present operating margin
  • 0.34 for the gross margin

The net margin for Builders Firstsource Inc stands at 0.08. The total capital return value is set at 0.23. Equity return is now at value 32.50, with 13.10 for asset returns.

Based on Builders Firstsource Inc (BLDR), the company’s capital structure generated 0.48 points at debt to capital in total, while cash flow to debt ratio is standing at 0.52. The debt to equity ratio resting at 0.91. The interest coverage ratio of the stock is 10.11.

Currently, EBITDA for the company is 2.73 billion with net debt to EBITDA at 1.67. When we switch over and look at the enterprise to sales, we see a ratio of 1.38. The receivables turnover for the company is 8.66for trailing twelve months and the total asset turnover is 1.59. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.83.

Conclusion

In conclusion, Builders Firstsource Inc (BLDR) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high..

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