Loop Capital Rates Builders FirstSource (BLDR) Hold
Key Points
- Loop Capital has lowered its rating on Builders FirstSource to Hold, setting a price target of $62, down from a prior estimate.
- Loop Capital's $62 price target implies 10.30% upside from Builders FirstSource, Inc.'s ($BLDR) current $56.21 share price.
- Builders FirstSource's shares recently traded at $56.21, which is about equal to the closing price on the day of the downgrade.
- The company's next earnings report is set for October 29, 2026, following a year-over-year revenue decline of 8.8%.
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On October 26, 2026, Loop Capital downgraded Builders FirstSource, Inc. (BLDR) to a Hold rating and set a price target of $62. This change came as the firm reassessed the company's performance amid challenging market conditions. The news was reported in the firm's research note on the same day.
In its latest analysis, Loop Capital noted the need for caution given Builders FirstSource's recent results. The company's shares closed at $56.21 on October 26, 2026, which was the same price they traded at the following day. This pricing indicates that the stock is currently positioned below its 50-day moving average by 6.4% and below its 200-day moving average by 31.0%. Furthermore, it is about 57.3% below its 52-week high of $131.50.
BLDR
Builders FirstSource, Inc.
Loop Capital vs. the S&P 500
Hypothetical returns from Loop Capital's disclosed trades, not real profit or advice. How we model this.
Other Institutional Activity in Builders FirstSource
Several other institutional investors have been active with Builders FirstSource shares. For instance, Verition Fund Management holds 228,437 shares, having increased its stake by 29,070 shares. Yousif Capital Management also boosted its holdings by 17,056 shares, bringing its total to 32,982 shares. Additionally, Cerity Partners increased its position by 74,129 shares, while Schonfeld Strategic Advisors added 120,629 shares, raising its total to 273,723 shares. Capital International Investors continues to be a major holder with 3,907,321 shares, having grown its position by 964,175 shares.
Builders FirstSource, Inc. Stock Down 1.1%
Builders FirstSource's stock is currently trading at $56.21, which is about equal to its closing price on October 26, 2026. The stock is significantly below its 52-week high of $131.50 and is also trading under its mean price target of $67.64 set by analysts. This situation suggests that the stock may be undervalued in the eyes of some investors, despite its recent performance.
$BLDR price target
Builders FirstSource, Inc. daily closes and this analyst's $62 target. Not advice.
Recent Earnings
Builders FirstSource reported a trailing twelve-month revenue of approximately $14.45 billion, with an earnings per share (EPS) of $0.92. The company is expected to announce its next earnings on October 29, 2026. The revenue has declined by 8.8% year-over-year, which may influence investor sentiment moving forward.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
8 target cuts vs 0 raises.
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EPS & revenue
EPS missed estimates by 28.4%. Revenue beat estimates by 1.5%.
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Profit surprise
EBITDA missed by 22 percent. Operating income missed by 80 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
8 target cuts.
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Earnings quality
Gross margin down 2.2 points. Operating margin down 4.5 points. Positive free cash flow.
Earnings Call Summary
Sales fell 10 percent to $3.3 billion as single-family starts dropped 11 percent and builders reduced home size and complexity by another 10 percent versus 2019. Gross margin fell 220 basis points to 28.3 percent, hurt by lower volume, specialty product weakness, and fuel inflation costs totaling roughly $100 million for the year. The company raised its share buyback authorization to $500 million and cut $100 million in annual costs, but remains confident in long-term market share gains as competitors struggle with tighter margins.
Guidance Builders FirstSource now expects about $14.6 billion to $15.6 billion in sales for 2026, down from prior expectations. They forecast adjusted EBITDA of $1.1 billion to $1.5 billion with margins between 7.5 and 9.6 percent. For the second quarter, they guide sales of $3.75 billion to $4.05 billion and EBITDA of $300 million to $350 million. The company cited weak housing starts, lower home values, and fuel cost inflation as reasons for the reduction.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Analysts Set New Price Targets
On October 16, 2026, Oppenheimer maintained an Outperform rating for Builders FirstSource with a target price of $78.00, down from $90.00. Wells Fargo also kept its Equal-Weight rating but lowered its target from $63.00 to $55.00. William Blair downgraded the stock to Market Perform on October 22, 2026. Loop Capital's recent downgrade to Hold with a $62 target reflects a more cautious outlook.
About Builders FirstSource
Builders FirstSource, Inc. provides building materials and manufactured components for residential and commercial construction in the United States. The company serves professional builders, contractors, and remodelers, playing a key role in the construction supply chain. Given the recent downgrade by Loop Capital, investors may be keen to monitor how the company adapts to current market challenges.
Bottom Line
Loop Capital's downgrade to Hold and a $62 price target for Builders FirstSource comes amid a backdrop of declining revenues. Investors should keep an eye on the upcoming earnings report on October 29, 2026, and any further analyst updates that may arise as the company navigates its performance in a tough market.
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Source: Loop Capital's rating change on $BLDR (Oct 26, 2026). Written by software, not financial advice. How we make alerts