The Case for and Against Builders FirstSource, Inc. (BLDR)

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 $19.48, down from yesterday’s close by -0.26%. 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

Builders FirstSource, Inc. (BLDR) currently trades with a market capitalization of $2.19 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.

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 grow in coming quarters. Analysts are forecasting earnings of $0.17 on a per share basis this quarter. Perhaps, that suggests something about why 10.61% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Builders FirstSource, Inc. recorded a 52-week high of $23.28. It is now trading 3.8% off that level. The stock is trading $21.29 its 50-day moving average by 1.81%. The stock carved out a 52-week low down at $12.12.

In recent action, Builders FirstSource, Inc. (BLDR) has made a move of -12.05% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.62, 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 3.18% with $110.75 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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