The stock of Builders FirstSource, Inc. (NASDAQ:BLDR) is now priced at $23.69 and the shares are 0.26 points up or 1.11% higher compared to its previous closing price of $23.43. The stock had 2.577 million contracts set over the past session. BLDR shares’ daily volume is compared to its average trading volume at 1.083 million shares. However, it has a float of 115 million and although its performance was 2.55% over the week, it’s one to watch. Analysts have given the BLDR stock a yearly average price target of $23.55 per share. It means the stock’s downside potential is -0.59% with the BLDR share price recently placing at $22.62 to $25.9982. However, some brokerage firms have priced the stock below the average, including one that has called $17.
The shorts are running away from the Builders FirstSource, Inc. stock, with the latest data on short interest released on July 15, 2020, showing that short interest numbers in the BLDR shares have declined. Short interest in the stock represents just 2.45% of its float, but the volume has dropped by -28104. The volume of shorted shares dropped to 2.805 million from 2.833 million shares over the last two weeks. The average intraday trading volume has been 770566 shares, which means that days to cover moved to roughly 3.639569.
In the last trading session, Builders FirstSource, Inc. (NASDAQ:BLDR) raised by $0.59 over the week and gained $3.62 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $28.43. The stock recorded its established 52-week high on 02/20/20.
Since 03/16/20, the stock has traded to a low of $9 at 163.22%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 2.46. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Builders FirstSource, Inc.’s two-week RSI is 59.3. This suggests that the stock is neutral at the moment and that BLDR shares’ price movement remains stable. The stochastic readings are equally revealing at 82.92% meaning the BLDR share price is currently in oversold territory.
The technical chart shows that the BLDR stock will likely settle at between $25.59 and $27.48 per share. However, if the stock dips below $22.21, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $20.72.
Currently, the stock is trading in the green of MACD, with a reading of 0.37. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Evercore ISI cut their recommendation for BLDR from Outperform to In-line in June 05 review while maintai their target price of $24. Deutsche Bank analysts downgraded their recommendation of the stock from Buy to Hold while keeping its target price at $20 to $17 in a flash note released to investors on May 05. The Benchmark Company analysts see the stock as Buy. Nonetheless, the analysts revised the share prices down on May 04, placing it at $22 from $32.
The average rating for the BLDR equity is 2 and is currently gathering a bullish momentum. Of 11 analysts tracking Builders FirstSource, Inc. polled by Reuters, 4 rated BLDR as a hold. The remaining 7 analysts were split evenly. However, the split wasn’t equal as a majority (7) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the BLDR stock price is 13.61X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 14.1 below the group’s average of 57.4. Builders FirstSource, Inc. has its P/E ratio at 3.3, which means that the stock is currently trading at a discount relative to the 4.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Builders FirstSource, Inc. (NASDAQ:BLDR) will increase by about 2.97%, which will see them reach $1840 million. The company’s full-year revenues are, however, expected to diminish by about -1.92%, down from $7280 million to $7140 million. BLDR’s expected adjusted earnings should drop almost -44.44% to end up at $0.4 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -37.8% to record $1.3/share.