A better buy-in window may exist right now for Builders FirstSource Inc. (BLDR)

Builders FirstSource Inc. (NYSE: BLDR) stock fell -5.23% on Friday to $127.24 against a previous-day closing price of $134.26. With 4.7 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.68 million shares. During the session, the Building Products & Equipment company that operates in wider Industrials sector, reached to the highest price of $132.10 whereas the lowest price it dropped to was $126.60. The 52-week range on BLDR shows that it touched its highest point at $156.85 and its lowest point at $52.70 during that stretch. It currently has a 1-year price target of $172.80. Beta for the stock currently stands at 2.02.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BLDR was down-trending over the past week, with a drop of -9.04%, but this was down by -13.58% over a month. Three-month performance surged to 3.44% while six-month performance rose 54.44%. The stock gained 130.42% in the past year, while it has gained 96.12% so far this year. A look at the trailing 12-month EPS for BLDR yields 12.91 with Next year EPS estimates of 11.98. For the next quarter, that number is 3.73. This implies an EPS growth rate of 98.30% for this year and -8.28% for next year. EPS is expected to decline by -10.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 95.70%.

Float and Shares Shorts:

At present, 126.98 million BLDR shares are outstanding with a float of 122.57 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.24 million, which was 3.39% higher than short shares on Jul 30, 2023. In addition to Mr. David E. Rush as the firm’s CEO & Pres, Mr. Peter M. Jackson serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 103.53% of BLDR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.15% of BLDR, in contrast to 44.54% held by mutual funds. Shares owned by individuals account for 24.51%. As the largest shareholder in BLDR with 9.93% of the stake, The Vanguard Group, Inc. holds 12,409,603 shares worth 12,409,603. A second-largest stockholder of BLDR, BlackRock Fund Advisors, holds 11,718,407 shares, controlling over 9.37% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in BLDR, holding 9,287,065 shares or 7.43% stake. With a 3.31% stake in BLDR, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 4,137,553 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.18% of BLDR stock, is the second-largest Mutual Fund holder. It holds 3,980,900 shares valued at 577.39 million. Vanguard Small Cap Index Fund holds 2.67% of the stake in BLDR, owning 3,338,245 shares worth 484.18 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, BLDR reported revenue of $6.93B and operating income of $1.37B. The EBITDA in the recently reported quarter was $1.48B and diluted EPS was $5.75.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BLDR since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With BLDR analysts setting a high price target of $220.00 and a low target of $135.00, the average target price over the next 12 months is $172.80. Based on these targets, BLDR could surge 72.9% to reach the target high and rise by 6.1% to reach the target low. Reaching the average price target will result in a growth of 35.81% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded BLDR stock several times over the past three months with 0 Buys and 5 Sells. In these transactions, 0 shares were bought while 14,241 shares were sold. The number of buy transactions has increased to 63 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 400,913 while 182,275 shares were sold.

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