Builders FirstSource Director Makes $67K Stock Purchase

It was revealed in a recent SEC filing that PAUL LEVY, Director at Builders FirstSource BLDR made a noteworthy insider purchase on December 5,.

What Happened: LEVY made a significant move by purchasing 484 shares of Builders FirstSource as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $67,411.

The latest market snapshot at Wednesday morning reveals Builders FirstSource shares up by 3.41%, trading at $148.15.

Get to Know Builders FirstSource Better

Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.

Unraveling the Financial Story of Builders FirstSource

Negative Revenue Trend: Examining Builders FirstSource's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -21.3% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: With a low gross margin of 34.87%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 3.62, Builders FirstSource showcases strong earnings per share.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.85.

Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 12.0 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.12, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Builders FirstSource's EV/EBITDA ratio, lower than industry averages at 7.76, indicates attractively priced shares.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Navigating the Impact of Insider Transactions on Investments

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Builders FirstSource's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.