Eminence Capital LP Acquires New Stake in Installed Building Products, Inc. $IBP

Key Points

• Eminence Capital LP has acquired a new stake in Installed Building Products, Inc., investing approximately $109.11 million for 636,384 shares, making it the firm's 28th largest position.
• Installed Building Products recently revised its quarterly earnings, reporting $2.95 EPS, which surpassed analysts' expectations, alongside a quarterly revenue of $760.30 million.
• The company has announced a quarterly dividend of $0.37, which translates to an annualized yield of 0.6%, payable on September 30th to stockholders of record on September 15th.

Eminence Capital LP purchased a new stake in Installed Building Products, Inc. (NYSE:IBP - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 636,384 shares of the construction company's stock, valued at approximately $109,114,000. Installed Building Products accounts for 1.8% of Eminence Capital LP's investment portfolio, making the stock its 28th biggest position. Eminence Capital LP owned 2.30% of Installed Building Products at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. grew its holdings in shares of Installed Building Products by 1.3% in the 1st quarter. Vanguard Group Inc. now owns 2,671,315 shares of the construction company's stock valued at $458,024,000 after acquiring an additional 34,512 shares in the last quarter. Vaughan Nelson Investment Management L.P. grew its holdings in shares of Installed Building Products by 28.6% in the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 530,181 shares of the construction company's stock valued at $90,905,000 after acquiring an additional 117,810 shares in the last quarter. Giverny Capital Inc. grew its holdings in shares of Installed Building Products by 0.7% in the 1st quarter. Giverny Capital Inc. now owns 508,073 shares of the construction company's stock valued at $87,114,000 after acquiring an additional 3,338 shares in the last quarter. Timucuan Asset Management Inc. FL bought a new position in shares of Installed Building Products in the 1st quarter valued at about $85,786,000. Finally, Van Berkom & Associates Inc. grew its holdings in shares of Installed Building Products by 15.0% in the 1st quarter. Van Berkom & Associates Inc. now owns 429,458 shares of the construction company's stock valued at $73,635,000 after acquiring an additional 56,000 shares in the last quarter. Institutional investors and hedge funds own 99.61% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on IBP. DA Davidson cut Installed Building Products from a "buy" rating to a "hold" rating and raised their price objective for the company from $225.00 to $252.00 in a report on Tuesday, August 12th. Danske cut Installed Building Products from a "buy" rating to a "hold" rating and set a $252.00 price objective for the company. in a report on Tuesday, August 12th. Loop Capital cut Installed Building Products from a "buy" rating to a "hold" rating and set a $255.00 price objective for the company. in a report on Friday, August 8th. Jefferies Financial Group lifted their price target on Installed Building Products from $175.00 to $225.00 and gave the stock a "hold" rating in a report on Tuesday, August 12th. Finally, Royal Bank Of Canada reiterated an "underperform" rating and set a $184.00 price target (up previously from $145.00) on shares of Installed Building Products in a report on Thursday, August 7th. Two analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Installed Building Products has an average rating of "Hold" and a consensus target price of $217.36.

Installed Building Products Price Performance

Shares of NYSE IBP traded down $13.24 during midday trading on Tuesday, reaching $266.23. The company's stock had a trading volume of 243,755 shares, compared to its average volume of 440,057. The company has a debt-to-equity ratio of 1.27, a quick ratio of 2.31 and a current ratio of 2.85. Installed Building Products, Inc. has a fifty-two week low of $150.83 and a fifty-two week high of $280.00. The business's 50 day moving average price is $230.27 and its two-hundred day moving average price is $189.67. The company has a market cap of $7.28 billion, a P/E ratio of 29.57 and a beta of 1.76.

Installed Building Products (NYSE:IBP - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The construction company reported $2.95 earnings per share for the quarter, beating analysts' consensus estimates of $2.45 by $0.50. Installed Building Products had a net margin of 8.45% and a return on equity of 60.27%. The company had revenue of $760.30 million during the quarter, compared to the consensus estimate of $711.37 million. During the same period in the previous year, the business earned $2.84 earnings per share. The firm's quarterly revenue was up 3.1% on a year-over-year basis. On average, analysts forecast that Installed Building Products, Inc. will post 10.66 EPS for the current fiscal year.

Installed Building Products Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be given a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 0.6%. The ex-dividend date is Monday, September 15th. Installed Building Products's payout ratio is currently 16.46%.

Insider Activity

In other news, CAO Todd R. Fry sold 500 shares of the company's stock in a transaction on Monday, August 11th. The shares were sold at an average price of $257.27, for a total transaction of $128,635.00. Following the completion of the transaction, the chief accounting officer directly owned 6,822 shares in the company, valued at approximately $1,755,095.94. This represents a 6.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider William Jeffrey Hire sold 6,500 shares of the company's stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $265.71, for a total transaction of $1,727,115.00. Following the transaction, the insider owned 37,999 shares of the company's stock, valued at $10,096,714.29. This trade represents a 14.61% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 11,655 shares of company stock valued at $3,123,578 in the last three months. Company insiders own 16.20% of the company's stock.

About Installed Building Products

Installed Building Products, Inc, together with its subsidiaries, engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products in the United States. It operates through Installation, Distribution, and Manufacturing operation segments.