BUZZ-Builders FirstSource rallies after chairman discloses share purchase

Reuters01:47
BUZZ-<a href="https://laohu8.com/S/BLDR">Builders FirstSource</a> rallies after chairman discloses share purchase

** Builders FirstSource BLDR.N shares up 4.8% at $91.20 on Tues after chairman boosts stake in building materials and products supplier

** A regulatory filing late Mon showed board chairman Paul Levy bought 50,000 shares at avg price of $87.73 worth about $4.4 mln on March 13

** Levy's direct stake went to ~1.73 mln shares, or ~1.6% of co's ~110.61 mln shares outstanding

** Insider buying is generally perceived by investors as a strongly bullish signal, indicating that execs believe a firm's stock is undervalued or that future performance will exceed expectations

** A month ago, Irving, Texas-based BLDR forecast 2025 profit margin below consensus as continued weakness in housing construction and affordability constraints weighed

** BLDR shares extended their slump in late Feb after gloomy comments from home-improvement retailers Lowe's LOW.N and Home Depot HD.N

** Even with advance on Tues, BLDR shares down ~11% YTD, well underperforming 7% gain in S&P 500 Industrials .SPLRCI

** Avg rating of 25 analysts is "buy"; median PT of $125 implies ~37% upside to currrent levels, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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