IRVING, Texas - Builders FirstSource, Inc. (NYSE: BLDR), a major supplier of building products in the United States, has announced a new share repurchase program. On Wednesday, the company's Board of Directors authorized the repurchase of up to $1.0 billion of its outstanding common stock. This new authorization includes the roughly $200 million remaining from a previous repurchase plan set forth in April 2023.
The repurchase program reflects the company's confidence in its strategic direction and ability to generate strong free cash flow, according to Paul S. Levy, Chairman of Builders FirstSource. He also cited the company's industry-leading position in providing value-added solutions and digital innovation as factors that will continue to drive superior performance and enhance shareholder value.
In 2023, Builders FirstSource repurchased 17.8 million shares at an average price of $100.49 per share, totaling $1.8 billion and reducing the total shares outstanding by 12.2%. Since the buyback program started in August 2021 until the end of 2023, the company has bought back 87.1 million shares, which represents 42.2% of its total shares outstanding, at an average price of $70.27 per share, with a total expenditure of $6.1 billion.
As of December 31, 2023, the company had 121.9 million shares outstanding. The timing and volume of the repurchases under the new program will be at Builders FirstSource's discretion, based on the capital needs of the business, the market price of its stock, and general market conditions.
Builders FirstSource, headquartered in Irving, Texas, is recognized as the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment, including new residential construction, as well as repair and remodeling. The company operates in 43 states, with around 570 locations, and has a significant presence in 48 of the top 50 and 89 of the top 100 Metropolitan Statistical Areas (MSAs).
This news is based on a press release statement issued by Builders FirstSource.
InvestingPro Insights
Builders FirstSource, Inc. (NYSE: BLDR) has demonstrated a strong commitment to enhancing shareholder value through its recent authorization of a significant share repurchase program. This move aligns with the management's strategy of aggressive buybacks, as highlighted by one of the InvestingPro Tips. The company's actions reflect a broader trend within the Building Products industry, where strong cash flows enable such shareholder-friendly activities.
Key real-time data from InvestingPro shows Builders FirstSource with a market capitalization of $22.65 billion and an attractive price-to-earnings (P/E) ratio of 15.38, which adjusts to an even more compelling 14.39 when considering the last twelve months as of Q3 2023. Despite analysts anticipating a sales decline in the current year, the company's stock has experienced a high return over the last year, with a 133.84% increase in the one-year price total return. This performance is also reflected in the short-term, with a strong return of 37.59% over the last three months.
InvestingPro Tips further reveal that Builders FirstSource operates with a moderate level of debt and has liquid assets that exceed short-term obligations, suggesting a stable financial footing that supports the execution of its share repurchase plan. Additionally, for those interested in deeper insights, there are 16 additional InvestingPro Tips available, offering a comprehensive analysis of the company's financial health and market position. Subscribers can access these tips at https://www.investing.com/pro/BLDR and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The company's strategy and financial metrics indicate a robust outlook for Builders FirstSource, making it a potentially attractive option for investors looking for strong returns and solid management practices in the Building Products sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.