Fred Alger Management LLC Makes New $51.52 Million Investment in Builders FirstSource, Inc. (NYSE:BLDR)

Fred Alger Management LLC purchased a new position in shares of Builders FirstSource, Inc. (NYSE:BLDR) during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 265,740 shares of the company’s stock, valued at approximately $51,516,000. Fred Alger Management LLC owned approximately 0.23% of Builders FirstSource at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in BLDR. FMR LLC lifted its position in Builders FirstSource by 45.7% during the 3rd quarter. FMR LLC now owns 10,158,152 shares of the company’s stock worth $1,969,259,000 after buying an additional 3,186,876 shares in the last quarter. Baillie Gifford & Co. bought a new stake in Builders FirstSource during the 3rd quarter worth about $267,132,000. Diamond Hill Capital Management Inc. bought a new stake in Builders FirstSource during the 3rd quarter worth about $255,867,000. Massachusetts Financial Services Co. MA lifted its position in Builders FirstSource by 339.8% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 1,180,358 shares of the company’s stock worth $163,373,000 after buying an additional 911,990 shares in the last quarter. Finally, Loomis Sayles & Co. L P lifted its position in Builders FirstSource by 256,479.8% during the 3rd quarter. Loomis Sayles & Co. L P now owns 661,976 shares of the company’s stock worth $128,331,000 after buying an additional 661,718 shares in the last quarter. 95.53% of the stock is owned by institutional investors.

Builders FirstSource Stock Performance

Shares of NYSE:BLDR opened at $184.75 on Friday. The company’s 50 day moving average price is $185.56 and its two-hundred day moving average price is $168.39. Builders FirstSource, Inc. has a 12-month low of $130.75 and a 12-month high of $214.70. The firm has a market cap of $21.26 billion, a PE ratio of 18.04, a PEG ratio of 1.03 and a beta of 2.08. The company has a quick ratio of 1.16, a current ratio of 1.77 and a debt-to-equity ratio of 0.83.

Builders FirstSource (NYSE:BLDR) last announced its earnings results on Tuesday, November 5th. The company reported $3.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.09 by ($0.02). Builders FirstSource had a return on equity of 33.55% and a net margin of 7.40%. The business had revenue of $4.23 billion for the quarter, compared to analyst estimates of $4.44 billion. During the same quarter in the previous year, the company earned $4.24 EPS. The business’s revenue for the quarter was down 6.7% on a year-over-year basis. Equities research analysts predict that Builders FirstSource, Inc. will post 11.56 earnings per share for the current year.

Builders FirstSource announced that its board has initiated a stock buyback program on Tuesday, August 6th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the company to reacquire up to 5.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have commented on BLDR shares. StockNews.com cut shares of Builders FirstSource from a “buy” rating to a “hold” rating in a research report on Tuesday, November 12th. Wedbush reaffirmed an “outperform” rating and issued a $230.00 target price on shares of Builders FirstSource in a report on Wednesday, November 6th. B. Riley dropped their target price on shares of Builders FirstSource from $197.00 to $187.00 and set a “buy” rating on the stock in a report on Wednesday, August 7th. Baird R W raised shares of Builders FirstSource from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 7th. Finally, Benchmark dropped their target price on shares of Builders FirstSource from $220.00 to $200.00 and set a “buy” rating on the stock in a report on Wednesday, August 7th. Five equities research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Builders FirstSource presently has a consensus rating of “Moderate Buy” and a consensus price target of $206.47.

Insiders Place Their Bets

In related news, Director Cleveland A. Christophe sold 10,000 shares of the stock in a transaction that occurred on Thursday, November 7th. The shares were sold at an average price of $178.41, for a total transaction of $1,784,100.00. Following the sale, the director now owns 33,083 shares in the company, valued at approximately $5,902,338.03. This trade represents a 23.21 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 1.80% of the company’s stock.

Builders FirstSource Company Profile

Builders FirstSource, Inc, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.