Royal Bank Of Canada Has Lowered Expectations for Installed Building Products (NYSE:IBP) Stock Price

Key Points

• Royal Bank of Canada cut its price target for Installed Building Products from $228 to $208 while maintaining a “sector perform” rating, implying 13.73% upside from the prior close.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $240.17, with most analysts recommending that investors hold the shares.
• IBP shares fell to $182.89, near their 52-week low, despite the company recently beating quarterly earnings and revenue expectations. Institutional investors own 99.61% of the stock.

Installed Building Products (NYSE:IBP - Get Free Report) had its target price reduced by Royal Bank Of Canada from $228.00 to $208.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has a "sector perform" rating on the construction company's stock. Royal Bank Of Canada's price objective would indicate a potential upside of 13.73% from the company's previous close.

Other equities research analysts also recently issued research reports about the stock. Evercore set a $222.00 price objective on shares of Installed Building Products in a report on Friday, September 25th. Melius Research assumed coverage on Installed Building Products in a research note on Tuesday. They set a "hold" rating and a $217.00 price target for the company. Wells Fargo & Company cut their price objective on Installed Building Products from $245.00 to $240.00 and set an "equal weight" rating for the company in a report on Friday, September 11th. DA Davidson lifted their price objective on shares of Installed Building Products from $242.00 to $250.00 and gave the stock a "neutral" rating in a research note on Monday, August 10th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Installed Building Products in a research note on Tuesday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $240.17.

Installed Building Products Stock Performance

NYSE IBP traded down $9.96 on Wednesday, hitting $182.89. The stock had a trading volume of 33,892 shares, compared to its average volume of 399,641. Installed Building Products has a one year low of $182.86 and a one year high of $349.00. The company has a quick ratio of 2.41, a current ratio of 2.98 and a debt-to-equity ratio of 1.62. The stock has a market cap of $4.86 billion, a price-to-earnings ratio of 19.76, a P/E/G ratio of 3.56 and a beta of 1.71. The company's 50-day moving average is $223.47 and its two-hundred day moving average is $234.30.

Installed Building Products (NYSE:IBP - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The construction company reported $2.91 earnings per share for the quarter, beating analysts' consensus estimates of $2.55 by $0.36. Installed Building Products had a return on equity of 42.12% and a net margin of 8.46%.The company had revenue of $777.80 million for the quarter, compared to analysts' expectations of $743.33 million. During the same quarter in the previous year, the company posted $2.95 earnings per share. The business's revenue for the quarter was up 2.3% compared to the same quarter last year. On average, analysts expect that Installed Building Products will post 9.89 earnings per share for the current year.

Insider Transactions at Installed Building Products

In other Installed Building Products news, Director Janet Jackson sold 1,086 shares of Installed Building Products stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $237.06, for a total transaction of $257,447.16. Following the completion of the sale, the director owned 5,142 shares of the company's stock, valued at $1,218,962.52. This trade represents a 17.44% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 13.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Vaughan Nelson Investment Management L.P. lifted its stake in Installed Building Products by 3.9% in the first quarter. Vaughan Nelson Investment Management L.P. now owns 133,953 shares of the construction company's stock valued at $35,518,000 after acquiring an additional 5,042 shares during the last quarter. Legal & General Group Plc bought a new position in shares of Installed Building Products during the 2nd quarter valued at $12,305,000. Hsbc Holdings PLC acquired a new stake in shares of Installed Building Products in the 2nd quarter valued at $20,435,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Installed Building Products in the 2nd quarter valued at $1,528,000. Finally, Bank of America Corp DE boosted its holdings in Installed Building Products by 51.8% in the first quarter. Bank of America Corp DE now owns 298,729 shares of the construction company's stock worth $79,208,000 after purchasing an additional 101,967 shares in the last quarter. 99.61% of the stock is owned by institutional investors and hedge funds.

About Installed Building Products

Installed Building Products, Inc NYSE: IBP is a residential and commercial building-products installation company headquartered in Columbus, Ohio. The company primarily serves homebuilders, contractors and homeowners by providing installation services for products used in new construction, renovation and remodeling projects.

Its core business is insulation installation, including fiberglass, spray foam, cellulose and other insulation products. Installed Building Products also offers installation of complementary building products such as garage doors, gutters, windows, doors, shower enclosures and closet systems, depending on the market.

Founded in 1977, the company has expanded through a network of local operating businesses serving customers across much of the United States.

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