Inkwell Capital Boosts Stake in Builders FirstSource by 46.6%

Inkwell Capital LLC has significantly increased its investment in Builders FirstSource, Inc. (NYSE: BLDR) by raising its stock holdings by an impressive 46.6% during the second quarter of 2023. According to the most recent Form 13F filing with the Securities and Exchange Commission, Inkwell Capital acquired an additional 7,385 shares, bringing its total ownership to 23,224 shares. Builders FirstSource now constitutes approximately 2.9% of Inkwell Capital’s investment portfolio, ranking as its 21st largest position. As of the latest reporting period, these holdings are valued at $2,710,000.

Other institutional investors have also adjusted their stakes in Builders FirstSource. For example, Stephens Inc. AR increased its position by 3.1% during the same period, now owning 3,032 shares worth $354,000 after acquiring an additional 90 shares. Smartleaf Asset Management LLC boosted its holdings by 21.0% in the first quarter, now holding 627 shares valued at $78,000, following a purchase of 109 shares. Similarly, Horizon Investments LLC increased its stake by 5.5% in the first quarter, now owning 2,205 shares valued at $275,000.

As of now, approximately 95.53% of Builders FirstSource’s stock is held by hedge funds and other institutional investors.

Analysts from various financial institutions have provided insights into Builders FirstSource’s stock performance. Barclays recently reduced their price target from $135.00 to $124.00 while maintaining an “overweight” rating. In contrast, Benchmark increased their target from $138.00 to $142.00 and issued a “buy” rating. BMO Capital Markets also lowered its price target to $123.00, while Baird R W adjusted their rating from “strong-buy” to “hold.” Currently, ten analysts have rated the stock as a buy, ten as a hold, and two as a sell, leading to a consensus rating of “hold” with a target price of $138.13.

Recent Stock Performance and Earnings Report

On October 30, 2023, Builders FirstSource reported an earnings per share (EPS) of $1.88 for the quarter, surpassing analysts’ consensus estimates of $1.69 by $0.19. The company achieved a return on equity of 24.61% and a net margin of 4.74%, with quarterly revenue reaching $3.94 billion, compared to the expected $3.86 billion. Year-over-year, revenue declined by 6.9%, with the previous year’s EPS recorded at $3.07.

The company’s stock opened at $103.25 on Monday, and its market performance has seen fluctuations over the past year, with a low of $102.60 and a high of $194.36. Builders FirstSource maintains a market capitalization of $11.42 billion, a price-to-earnings ratio of 15.67, and a PEG ratio of 12.90. The company also reports a debt-to-equity ratio of 1.12, a quick ratio of 1.08, and a current ratio of 1.79.

About Builders FirstSource

Builders FirstSource, Inc., along with its subsidiaries, specializes in manufacturing and supplying building materials, components, and construction services primarily for professional homebuilders, subcontractors, remodelers, and consumers across the United States. Their product offerings include lumber and lumber sheet goods, manufactured products such as floor and roof trusses, wall panels, and a variety of doors and windows, along with custom products under the Synboard brand.

For further insights on Builders FirstSource and to keep track of institutional holdings, investors can visit HoldingsChannel.com for the latest 13F filings and insider trades.