What Happened?

Shares of building materials company Builders FirstSource (NYSE: BLDR) jumped 5.4% in the morning session after the company received positive attention from Wall Street analysts. 

According to reports, 19 analysts covering the stock maintained a consensus 'Buy' rating. This suggested that, on average, analysts believed the stock was likely to outperform the broader market. The average price target among them was set at $141.37. A deeper look into the ratings showed that 32% of analysts recommended a 'Strong Buy' and 26% recommended a 'Buy', while 42% suggested holding the stock. This collective positive outlook from market experts appeared to boost investor confidence.

Is now the time to buy Builders FirstSource? Access our full analysis report here.

What Is The Market Telling Us

Builders FirstSource’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 21 days ago when the stock dropped 3.8% on the news that Jefferies downgraded the stock to 'Hold' from 'Buy' and lowered its price target. The analyst firm significantly reduced its price target on the shares to $110 from $138. The downgrade reflected a more cautious view of the stock's future performance.

Builders FirstSource is up 6.2% since the beginning of the year, but at $111.08 per share, it is still trading 36% below its 52-week high of $173.51 from January 2025. Investors who bought $1,000 worth of Builders FirstSource’s shares 5 years ago would now be looking at an investment worth $2,798.

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