GAMMA Investing LLC Increases Stake in Builders FirstSource, Inc. (NYSE:BLDR)

GAMMA Investing LLC has increased its stake in Builders FirstSource, Inc. (NYSE:BLDR) by 10.2% during the third quarter of 2024, as reported in its recent filing with the Securities and Exchange Commission (SEC). The firm now owns a total of 1,060 shares of Builders FirstSource following the acquisition of an additional 98 shares in this timeframe. By the end of the last quarter, the total value of GAMMA Investing LLC's holdings in the company was approximately $205,000.

Several other institutional investors and hedge funds have also made adjustments to their positions in Builders FirstSource. For instance, the New Mexico Educational Retirement Board significantly increased its holdings by 512.3% in the first quarter of 2024. After acquiring an additional 33,300 shares, the board now holds 39,800 shares, with a total value around $8.3 million. Similarly, SG Americas Securities LLC raised its stake by 273.0% during the same period, bringing its total to 62,622 shares valued at about $13.06 million after purchasing 45,832 additional shares.

Another notable investor, Cetera Investment Advisers, expanded its position in Builders FirstSource by a staggering 762.2% in the first quarter, now owning 50,982 shares worth around $10.63 million post-acquisition. Janus Henderson Group PLC also saw a 21.1% increase in its stake, currently holding 20,013 shares valued at $4.17 million. Additionally, Raymond James Financial Services Advisors Inc. raised its stake by 18.6% during the second quarter, acquiring 18,223 shares and now owning a total of 115,995 shares worth approximately $16.05 million. Overall, institutional investors and hedge funds comprise 95.53% of Builders FirstSource's total ownership in the market.

Insider Activity

On the insider front, Director Craig Arthur Steinke sold 30,000 shares of Builders FirstSource on August 8th. The shares were sold at an average price of $153.68, resulting in a transaction total of $4,610,400. Following this sale, Steinke continues to hold 95,333 shares valued at about $14.65 million. This transaction does not significantly alter his overall position in the company. It is noteworthy that insider ownership constitutes approximately 1.80% of the total shares.

Recent Stock Performance

As of Friday, Builders FirstSource shares (BLDR) opened at $193.00. The stock has shown notable movements with a 50-day simple moving average of $177.50 and a 200-day simple moving average of $170.23. Over the past year, the shares reached a low of $105.24 and a high of $214.70. Builders FirstSource enjoys a market capitalization of $23.56 billion, with a P/E ratio of 16.52 and a P/E/G ratio of 11.48. The company also showcases a debt-to-equity ratio of 0.88, alongside a current ratio of 1.83 and a quick ratio of 1.14.

The company last reported its earnings on August 6th, announcing an EPS of $3.50 for the quarter, surpassing the analysts' consensus estimate of $3.02 by $0.48. The reported revenue totaled $4.46 billion, which was slightly below analyst expectations of $4.48 billion. Builders FirstSource had a net profit margin of 8.25% and a return on equity of 37.05%, although this represented a 1.6% decrease in revenue compared to the same quarter last year.

On the same earnings release date, Builders FirstSource announced a stock repurchase program, allowing the company to buy back up to $1.00 billion in shares, which amounts to about 5.3% of its total shares. Such buybacks often indicate the management’s confidence in the stock's current valuation.

Analysts' Ratings and Predictions

According to recent reports from various equity analysts, there has been an increase in the price targets for Builders FirstSource shares. Oppenheimer raised its price target from $205.00 to $225.00, giving it an “outperform” rating. Meanwhile, Bank of America lifted its target from $165.00 to $198.00, maintaining a “neutral” rating. Goldman Sachs initiated coverage on the company with a “buy” rating and a price target of $225.00. Barclays also increased its target from $182.00 to $211.00, while Robert W. Baird upgraded its rating to “outperform” and set a new target of $190.00. In total, four analysts have recommended a hold rating, while fourteen suggest buying the stock, reflecting a general consensus of “Moderate Buy” with an average price target of $196.38.

Company Overview

Builders FirstSource, Inc., along with its subsidiaries, specializes in manufacturing and supplying building materials, components, and construction services tailored to professional homebuilders, subcontractors, remodelers, and consumers across the United States. Its product offerings include various lumber products, including dimensional lumber and plywood, as well as manufactured components such as trusses, panels, and engineered wood products. The company also provides a variety of door units, window products, and customized interior installations under the Synboard brand.

GAMMA, Investing, Stock