The Insider Activity Of Builders FirstSource Inc. (BLDR) Is Worth Monitoring

Builders FirstSource Inc. (NYSE:BLDR) finished Wednesday with an addition of $0.97 to close at $56.42, an upside of 1.75 percent. An average of 1,430,580 shares of common stock have been traded in the last five days. There was a gain of $3.28 in the past week. The last 20 days have seen an average of 1,770,215 shares traded, while the 50-day average volume stands at 2,054,070.

BLDR stock has increased by 7.86% in the last month. The company shares reached their 1-month lowest point of $50.59 on 09/20/21. With the stock rallying to its 52-week high on 10/13/21, shares of the company touched a low of $29.73 and a high of $56.31 in 52 weeks. In spite of this, the price is up 0.20% from the 52-week high.


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Insider Transactions

52 days have passed since Builders FirstSource Inc. (BLDR) last reported insider trading activity. FARMER MICHAEL ALAN, who is President – Commercial Ops, most recently acquired $10,000 shares at $49.76 per share on Aug 23. In this transaction, the insider spent $497,600. Principal Accounting Officer, Coulter Jami Lynn, disposed of 5,000 shares at a price of $44.47 on Mar 08. The insider now owns more than $222,350 worth of shares. Prior to that, EVP & General Counsel Johnson Timothy D went on to Sale 10,000 shares at $44.39 each on Mar 08. An amount of $443,900 was transacted.

Valuation Metrics

Builders FirstSource Inc. (BLDR) has a trailing price-to-earnings (P/E) ratio of 11.02, which compares with the 23.80 for the broader industry and 28.57 for the sector. In the last five years, Builders FirstSource Inc.’s PE ratio has ranged between 71.97 and 5.605. The stock’s beta is 2.32. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.80, the price-to-book (PB) ratio at 2.13.

The quick ratio of Builders FirstSource Inc. for the three months ended June 29 was 1.30, and the current ratio was 2.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.37 and a total debt to equity ratio of 0.37 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 26.70% against a 5-year average of 25.5%. Builders FirstSource Inc.’s EBITDA margin for the year ending June 29 is 7.72%, while its operating margin for the same period stands at 8.80%. Its gross profit as reported stood at $2.22 billion compared to revenue of $8.56 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Builders FirstSource Inc.’s return on assets was 12.70%, compared to 5.8% over the last five years. In the past year, the return on investment has been 16.20%, and the 5-year average is 12.5%. Meanwhile, the return on equity (ROE) for the past 12 months has been 28.40% and the 5-year average holds at 35.9%. For the broader industry, ROE averaged 10.11 over the past year.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $5.58 billion in the quarter, while revenues of $4.17 billion were grew 65.11%. The analyst consensus anticipated Builders FirstSource Inc.’s latest quarter earnings to come in at $1.75 per share, but it turned out to be $2.76, a 57.70% surprise. For the quarter, EBITDA amounted to $807.46 million. Shareholders own equity worth $207.21 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Builders FirstSource Inc. (BLDR) price momentum. RSI 9-day as of the close on 13 October was 72.21%, suggesting the stock is Overbought, with historical volatility in this time frame at 15.54%.

As of today, BLDR’s price is $55.38 +6.17% or $3.28 from its 5-day moving average. BLDR is currently trading +6.21% higher than its 20-day SMA and +28.34% higher than its 100-day SMA. However, the stock’s current price level is +23.03% above the SMA50 and +34.59% above the SMA200.

The stochastic %K and %D were 87.33% and 84.05%, respectively, and the average true range (ATR) was 1.47. With the 14-day stochastic at 96.40% and the average true range at 1.48, the RSI (14) stands at 67.13%. The stock has reached 1.43 on the 9-day MACD Oscillator while the 14-day reading was at 1.62.

Analyst Ratings

B. Riley Securities reiterated its a Buy rating on Builders FirstSource Inc. (NYSE: BLDR), but raised their price target to $62, indicating a potential price increase of 9.89% for the stock.The consensus rating for Builders FirstSource Inc. (BLDR) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell BLDR, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 12 others rate it as a “buy”.

What is BLDR’s price target for the next 12 months?

Analysts predict a range of price targets between $58.00 and $90.00, with a median target of $67.00. Taking a look at these predictions, the average price target given by analysts for Builders FirstSource Inc. (BLDR) stock is $67.86.

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