why Builders FirstSource Inc. [BLDR] is a Good Choice for Investors After New Price Target of $80.79

Builders FirstSource Inc. [NYSE: BLDR] gained 1.10% or 0.94 points to close at $86.70 with a heavy trading volume of 2407839 shares. The company report on February 28, 2023 that Builders FirstSource Reports Fourth Quarter and Record Full Year 2022 Results.

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Fourth Quarter 2022 HighlightsNet sales of $4.4 billion, a decrease of 6.0%Net income of $384.5 million, a decrease of 13.1% Earnings per diluted share of $2.62 per share, an increase of 13.4%Adjusted EBITDA of $0.7 billion, a decrease of 12.2%Repurchased $651.4 million of common shares in the fourth quarter.

It opened the trading session at $84.74, the shares rose to $87.25 and dropped to $83.51, the range by which the price of stock traded the whole day. The daily chart for BLDR points out that the company has recorded 44.86% gains over the past six months. However, it is still -77.26% lower than its most recent low trading price.

If we look at the average trading volume of 1.76M shares, BLDR reached to a volume of 2407839 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Builders FirstSource Inc. [BLDR]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BLDR shares is $80.79 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BLDR stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BMO Capital Markets have made an estimate for Builders FirstSource Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on March 01, 2023. The new note on the price target was released on November 09, 2022, representing the official price target for Builders FirstSource Inc. stock. Previously, the target price had yet another raise to $93, while Deutsche Bank analysts kept a Buy rating on BLDR stock. On August 02, 2022, analysts increased their price target for BLDR shares from 70 to 79.

The Average True Range (ATR) for Builders FirstSource Inc. is set at 2.77, with the Price to Sales ratio for BLDR stock in the period of the last 12 months amounting to 0.55. The Price to Book ratio for the last quarter was 2.58, with the Price to Cash per share for the same quarter was set at 0.58. Price to Free Cash Flow for BLDR in the course of the last twelve months was 3.99 with Quick ratio for the last quarter at 1.20.

Trading performance analysis for BLDR stock

Builders FirstSource Inc. [BLDR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 8.36. With this latest performance, BLDR shares gained by 8.78% in over the last four-week period, additionally plugging by 44.86% over the last 6 months – not to mention a rise of 18.69% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BLDR stock in for the last two-week period is set at 69.10, with the RSI for the last a single of trading hit 71.90, and the three-weeks RSI is set at 67.60 for Builders FirstSource Inc. [BLDR]. The present Moving Average for the last 50 days of trading for this stock 74.57, while it was recorded at 83.76 for the last single week of trading, and 64.94 for the last 200 days.

Builders FirstSource Inc. [BLDR]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Builders FirstSource Inc. [BLDR] shares currently have an operating margin of +12.27 and a Gross Margin at +28.68. Builders FirstSource Inc.’s Net Margin is presently recorded at +8.67.

Return on Equity for this stock inclined to 57.95, with Return on Assets sitting at 23.18.

Builders FirstSource Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.90.

Builders FirstSource Inc. [BLDR]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BLDR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Builders FirstSource Inc. go to 18.80%.

An analysis of insider ownership at Builders FirstSource Inc. [BLDR]

There are presently around $12,126 million, or 97.71% of BLDR stock, in the hands of institutional investors. The top three institutional holders of BLDR stocks are: VANGUARD GROUP INC with ownership of 14,626,446, which is approximately -3.23% of the company’s market cap and around 1.50% of the total institutional ownership; BLACKROCK INC., holding 14,134,803 shares of the stock with an approximate value of $1.23 billion in BLDR stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $1.15 billion in BLDR stock with ownership of nearly -10.098% of the company’s market capitalization.

Positions in Builders FirstSource Inc. stocks held by institutional investors increased at the end of Tuesday and at the time of the Tuesday reporting period, where 235 institutional holders increased their position in Builders FirstSource Inc. [NYSE:BLDR] by around 9,626,506 shares. Additionally, 289 investors decreased positions by around 20,069,506 shares, while 56 investors held positions by with 110,170,964 shares. The mentioned changes placed institutional holdings at 139,866,976 shares, according to the latest SEC report filing. BLDR stock had 84 new institutional investments in for a total of 2,933,451 shares, while 56 institutional investors sold positions of 1,614,324 shares during the same period.


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