Christophe Cleveland A, a director at Builders FirstSource, Inc. (NYSE:BLDR), has sold 10,000 shares of the company's common stock, according to a recent SEC filing. The shares were sold at an average price of $178.41, amounting to a total transaction value of approximately $1.78 million. Following this sale, Cleveland retains ownership of 33,083 shares in the company. The transaction was executed on November 7, 2024, with prices ranging from $177.66 to $179.82 per share.
In other recent news, Builders FirstSource experienced a 6.7% year-on-year decline in net sales, totaling $4.2 billion, as revealed in its Q3 2024 financial results. Despite the decrease, the company maintained robust gross margins of nearly 33% and stable adjusted EBITDA margins over 14 quarters. Builders FirstSource also completed six acquisitions, contributing $190 million in annual sales, and announced leadership changes with Peter Jackson stepping in as CEO and Pete Beckmann as CFO.
Stephens recently raised the price target for Builders FirstSource shares to $200 from the previous $178, maintaining an Overweight rating. The firm sees Builders FirstSource as well-positioned to benefit from a potential housing market rebound and has confidence in the company's ability to navigate the market.
The company's digital tool orders reached nearly $600 million since launch, although 2024 incremental sales expectations were revised down to $110 million. Builders FirstSource also reported repurchasing $160 million in shares with $5.5 billion to $8.5 billion allocated for capital investments from 2024 to 2026. The company's outlook anticipates modest impacts from recent hurricanes, estimating a $40 million reduction in sales.
InvestingPro Insights
The recent insider sale by Director Christophe Cleveland A at Builders FirstSource, Inc. (NYSE:BLDR) comes at a time when the company's stock has shown strong performance. According to InvestingPro data, BLDR has delivered a robust 43.07% total return over the past year, and a notable 16.45% return in the last three months alone. This performance aligns with an InvestingPro Tip highlighting BLDR's strong returns over various time frames, including the last decade and five years.
Despite the positive stock performance, it's worth noting that 10 analysts have revised their earnings downwards for the upcoming period, as indicated by an InvestingPro Tip. This could suggest some caution regarding future financial expectations. However, the company's financial health appears solid, with InvestingPro data showing a market capitalization of $20.56 billion and a price-to-earnings ratio of 17.3, which is relatively moderate for the building products industry.
BLDR's financial metrics reveal a company operating with a moderate level of debt and liquid assets exceeding short-term obligations, both positive indicators for financial stability. The company's gross profit margin stands at a healthy 33.55%, while its operating income margin is 10.52%, demonstrating efficient operations in a competitive industry.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Builders FirstSource, providing a deeper understanding of the company's financial position and market outlook.
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