Builders FirstSource (NYSE:BLDR) Cut to Strong Sell at Zacks Research

Zacks Research cut shares of Builders FirstSource (NYSE:BLDR) from a hold rating to a strong sell rating in a report published on Thursday morning,Zacks.com reports.

Several other brokerages have also issued reports on BLDR. Robert W. Baird lowered their price target on shares of Builders FirstSource from $135.00 to $125.00 and set a “neutral” rating on the stock in a research note on Wednesday. Jefferies Financial Group upped their price objective on shares of Builders FirstSource from $110.00 to $112.00 and gave the company a “hold” rating in a report on Monday, January 26th. Deutsche Bank Aktiengesellschaft dropped their price target on Builders FirstSource from $134.00 to $131.00 and set a “hold” rating for the company in a report on Monday, November 3rd. Loop Capital cut their price objective on shares of Builders FirstSource from $145.00 to $140.00 in a report on Friday, October 31st. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Builders FirstSource in a report on Wednesday, January 21st. Eight equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $129.02.

Builders FirstSource Price Performance

NYSE BLDR opened at $110.38 on Thursday. The business has a 50 day simple moving average of $114.70 and a 200 day simple moving average of $120.17. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.15 and a current ratio of 1.86. Builders FirstSource has a 52-week low of $94.35 and a 52-week high of $151.03. The stock has a market cap of $12.21 billion, a price-to-earnings ratio of 28.45, a PEG ratio of 14.21 and a beta of 1.56.

Builders FirstSource (NYSE:BLDR) last issued its quarterly earnings data on Tuesday, February 17th. The company reported $1.12 EPS for the quarter, missing analysts’ consensus estimates of $1.30 by ($0.18). Builders FirstSource had a return on equity of 17.89% and a net margin of 2.87%.The company had revenue of $3.36 billion for the quarter, compared to analyst estimates of $3.46 billion. During the same quarter in the previous year, the business earned $2.31 earnings per share. The company’s revenue was down 12.1% on a year-over-year basis. Analysts anticipate that Builders FirstSource will post 11.59 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Capital International Investors bought a new position in Builders FirstSource during the 3rd quarter worth approximately $429,640,000. Northwestern Mutual Wealth Management Co. increased its position in shares of Builders FirstSource by 99,084.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company’s stock worth $230,634,000 after acquiring an additional 2,239,301 shares in the last quarter. Franklin Resources Inc. raised its stake in shares of Builders FirstSource by 2,498.8% in the third quarter. Franklin Resources Inc. now owns 1,854,525 shares of the company’s stock worth $224,861,000 after purchasing an additional 1,783,164 shares during the last quarter. Sands Capital Management LLC lifted its stake in Builders FirstSource by 139.1% during the 3rd quarter. Sands Capital Management LLC now owns 2,430,902 shares of the company’s stock valued at $294,747,000 after acquiring an additional 1,414,129 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its holdings in Builders FirstSource by 235.1% during the third quarter. Victory Capital Management Inc. now owns 1,893,483 shares of the company’s stock worth $229,585,000 after purchasing an additional 1,328,363 shares during the last quarter. 95.53% of the stock is owned by institutional investors.

Builders FirstSource News Roundup

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Benchmark cut its target but kept a Buy rating, leaving a sizable ~25% upside vs. the current share price, which supports upside potential if fundamentals stabilize. Benchmark keeps Buy, lowers PT to $138
• Positive Sentiment: Barclays lowered its PT to $124 but maintained an Overweight rating, implying continued analyst conviction that shares have mid‑teens upside if housing demand improves. Barclays lowers PT to $124, keeps Overweight
• Positive Sentiment: Company commentary/press coverage highlights that management is balancing a tough Q4 with a solid 2025 outlook, which could support medium‑term recovery if volumes and margins improve. Builders FirstSource balances Q4 hit with solid 2025
• Neutral Sentiment: BMO trimmed its PT to $120 and kept a Market Perform rating, signaling limited near‑term upside from their view. BMO lowers PT to $120, Market Perform
• Neutral Sentiment: RBC and Bank of America-related notes reiterated Hold/Hold-like stances (RBC hold; BofA hold with $123 PT), reflecting a mixed/valuations-driven view rather than outright bullishness. RBC Hold on BLDR BofA reiterates Hold
• Negative Sentiment: Analyst downgrades/pessimistic notes from Stephens and Robert W. Baird raise downside risk in the near term by lowering investor expectations for revenue/earnings recovery. Stephens issues pessimistic forecast Robert W. Baird lowers expectations
• Negative Sentiment: Q4 coverage and the earnings call highlight declining volumes and cost controls as defining the quarter — the operational weakness and revenue miss are the clearest near‑term negative drivers for the stock. Deep dive: declining volumes and cost controls Q4 earnings call transcript

About Builders FirstSource

Builders FirstSource, Inc is a leading supplier of structural and value-added building products and services to professional contractors, homebuilders and remodelers. The company provides a comprehensive range of materials and prefabricated components that support all phases of residential construction, from site development and framing to finishing and installation.

The company’s core offerings include lumber and lumber sheet goods, windows and doors, millwork, roofing and siding, and engineered wood products such as roof and floor trusses.