DA Davidson Issues Pessimistic Forecast for Installed Building Products (NYSE:IBP) Stock Price

Key Points

• DA Davidson cut its price target on Installed Building Products from $270 to $242 while keeping a neutral rating, signaling a more cautious near-term outlook for the stock.
• The broader analyst view remains muted: the stock carries an average Hold rating with an average target price of $251.83, and several firms also recently lowered their targets.
• Installed Building Products fell sharply after reporting mixed quarterly results, with EPS of $1.79 missing estimates and revenue of $660.5 million coming in slightly below expectations.

Installed Building Products (NYSE:IBP - Get Free Report) had its price objective cut by investment analysts at DA Davidson from $270.00 to $242.00 in a research report issued on Monday,Benzinga reports. The firm currently has a "neutral" rating on the construction company's stock. DA Davidson's price objective would suggest a potential upside of 17.51% from the stock's previous close.

A number of other research analysts also recently issued reports on the stock. Vertical Research upgraded shares of Installed Building Products from a "sell" rating to a "hold" rating and set a $326.00 target price for the company in a research report on Friday, February 27th. The Goldman Sachs Group lowered their target price on Installed Building Products from $331.00 to $285.00 and set a "buy" rating on the stock in a research note on Friday. Evercore set a $226.00 target price on shares of Installed Building Products in a report on Friday. Stephens lowered their price target on shares of Installed Building Products from $300.00 to $240.00 and set an "equal weight" rating on the stock in a report on Friday. Finally, Weiss Ratings lowered shares of Installed Building Products from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday. One research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $251.83.

Installed Building Products Stock Performance

Installed Building Products stock traded down $14.05 during trading hours on Monday, hitting $205.94. 196,993 shares of the stock traded hands, compared to its average volume of 356,223. Installed Building Products has a 1 year low of $150.83 and a 1 year high of $349.00. The stock has a market capitalization of $5.55 billion, a price-to-earnings ratio of 22.05, a P/E/G ratio of 3.05 and a beta of 1.84. The company has a debt-to-equity ratio of 1.56, a current ratio of 3.35 and a quick ratio of 2.76. The firm's 50 day moving average price is $287.19 and its 200-day moving average price is $283.19.

Installed Building Products (NYSE:IBP - Get Free Report) last issued its earnings results on Thursday, May 7th. The construction company reported $1.79 EPS for the quarter, missing analysts' consensus estimates of $1.96 by ($0.17). Installed Building Products had a net margin of 8.65% and a return on equity of 42.28%. The firm had revenue of $660.50 million during the quarter, compared to analysts' expectations of $668.92 million. During the same quarter in the prior year, the company earned $2.08 EPS. Installed Building Products's quarterly revenue was down 3.5% on a year-over-year basis. As a group, equities analysts expect that Installed Building Products will post 10.81 EPS for the current fiscal year.

Insider Activity at Installed Building Products

In related news, Director Janet E. Jackson sold 1,410 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $293.31, for a total transaction of $413,567.10. Following the sale, the director directly owned 5,373 shares of the company's stock, valued at $1,575,954.63. This represents a 20.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jeffrey W. Edwards sold 400,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $314.06, for a total transaction of $125,624,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,727,819 shares of the company's stock, valued at $542,638,835.14. This represents a 18.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 13.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD raised its holdings in Installed Building Products by 26.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,551,161 shares of the construction company's stock worth $402,356,000 after purchasing an additional 328,725 shares in the last quarter. TD Asset Management Inc raised its holdings in shares of Installed Building Products by 2,169.2% in the third quarter. TD Asset Management Inc now owns 271,938 shares of the construction company's stock valued at $67,076,000 after buying an additional 259,954 shares during the last quarter. Orion Porfolio Solutions LLC grew its holdings in shares of Installed Building Products by 4,659.1% during the second quarter. Orion Porfolio Solutions LLC now owns 171,897 shares of the construction company's stock worth $30,996,000 after buying an additional 168,285 shares during the last quarter. Ameriprise Financial Inc. increased its position in Installed Building Products by 84.1% in the 2nd quarter. Ameriprise Financial Inc. now owns 276,690 shares of the construction company's stock valued at $49,893,000 after acquiring an additional 126,435 shares during the period. Finally, Norges Bank purchased a new stake in Installed Building Products during the 4th quarter valued at approximately $32,359,000. Hedge funds and other institutional investors own 99.61% of the company's stock.

About Installed Building Products

Installed Building Products, Inc NYSE: IBP is a leading national installer of specialty building products serving the U.S. residential construction market. The company partners with homebuilders and contractors to deliver a comprehensive range of interior and exterior finishing services, including insulation, drywall finishing, protective coatings and basement waterproofing systems. By offering a single-source solution, Installed Building Products helps streamline project coordination and ensures consistent service quality across multiple trades.

Founded in 1977 and headquartered in Columbus, Ohio, Installed Building Products has expanded from a regional insulation installer into a nationwide platform operating in nearly every state.

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