Builders FirstSource, Inc. (BLDR): From Top to Bottom

Builders FirstSource, Inc. (BLDR) is an interesting player in the Industrial Goods space, with a focus on General Building Materials. The stock has been active on the tape, currently trading at $18.47, up from yesterday’s close by 1.09%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

No amount of research is complete without a bird’s eye view of the financial data. Builders FirstSource, Inc. (BLDR) currently trades with a market capitalization of $2.07 Billion. That value represents a market adjusting for revenues that have been growing by 7.61 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For BLDR, the company currently has $9.34 Million of cash on the books, which is offset by $12.17 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $132.13 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.18 on a per share basis this quarter. Perhaps, that suggests something about why 79.39% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Builders FirstSource, Inc. recorded a 52-week high of $18.82. It is now trading 0.35% off that level. The stock is trading $17.49 its 50-day moving average by -0.98%. The stock carved out a 52-week low down at $10.13.

In recent action, Builders FirstSource, Inc. (BLDR) has made a move of +7.32% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 18.46, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 5.03% with $110.03 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of BLDR.

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