Installed Building Products, Inc. (NYSE:IBP) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Consensus "Reduce": Twelve analysts cover Installed Building Products with a consensus Reduce rating (2 sell, 10 hold) and an average 1‑year target of $259.70, below the recent share price (~$289.46), implying potential downside.
• Major insider selling: CEO Jeffrey W. Edwards sold 400,000 shares for about $125.6 million (an ~18.8% reduction in his position) and a director also sold shares, with insiders now reported to own ~16.2% of the stock.
• Operational and capital actions: The company beat quarterly EPS estimates ($3.24 vs. $2.83) and revenue forecasts, and paid a special dividend of $1.80 per share on March 31 (reported yield 63.0% and payout ratio 16.03%).

Installed Building Products, Inc. (NYSE:IBP - Get Free Report) has earned a consensus recommendation of "Reduce" from the twelve research firms that are covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating and ten have assigned a hold rating to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $259.70.

IBP has been the topic of a number of analyst reports. Wells Fargo & Company decreased their price target on Installed Building Products from $340.00 to $285.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 8th. JPMorgan Chase & Co. restated an "underweight" rating and issued a $245.00 price target on shares of Installed Building Products in a research note on Tuesday, January 13th. Weiss Ratings downgraded Installed Building Products from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, March 20th. Jefferies Financial Group lifted their price target on Installed Building Products from $230.00 to $259.00 and gave the company a "hold" rating in a research note on Monday, December 15th. Finally, DA Davidson lifted their price target on Installed Building Products from $252.00 to $270.00 and gave the company a "neutral" rating in a research note on Wednesday, March 18th.

Installed Building Products Stock Up 1.3%

Shares of NYSE:IBP opened at $289.46 on Tuesday. The company has a market cap of $7.80 billion, a price-to-earnings ratio of 29.75, a PEG ratio of 3.96 and a beta of 1.97. The firm's 50-day simple moving average is $298.86 and its 200-day simple moving average is $278.10. The company has a quick ratio of 2.44, a current ratio of 3.03 and a debt-to-equity ratio of 1.20. Installed Building Products has a fifty-two week low of $150.83 and a fifty-two week high of $349.00.

Installed Building Products (NYSE:IBP - Get Free Report) last issued its earnings results on Thursday, February 26th. The construction company reported $3.24 earnings per share for the quarter, beating the consensus estimate of $2.83 by $0.41. The business had revenue of $747.50 million for the quarter, compared to the consensus estimate of $738.97 million. Installed Building Products had a net margin of 8.93% and a return on equity of 43.71%. The business's quarterly revenue was down .4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.88 earnings per share. As a group, equities research analysts predict that Installed Building Products will post 10.66 earnings per share for the current year.

Installed Building Products Dividend Announcement

The business also recently disclosed a special dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 13th were issued a dividend of $1.80 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a yield of 63.0%. Installed Building Products's payout ratio is currently 16.03%.

Insider Transactions at Installed Building Products

In related news, Director Janet E. Jackson sold 1,410 shares of the business's stock in a transaction dated 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 owned 5,373 shares of the company's stock, valued at approximately $1,575,954.63. The trade was a 20.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Jeffrey W. Edwards sold 400,000 shares of the business's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $314.06, for a total transaction of $125,624,000.00. Following the sale, the chief executive officer directly owned 1,727,819 shares in the company, valued at approximately $542,638,835.14. This represents a 18.80% decrease in their position. The SEC filing for this sale provides additional information. 16.20% of the stock is currently owned by insiders.

Institutional Trading of Installed Building Products

A number of institutional investors have recently added to or reduced their stakes in IBP. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Installed Building Products by 3.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,130 shares of the construction company's stock worth $2,423,000 after buying an additional 486 shares in the last quarter. United Services Automobile Association purchased a new stake in Installed Building Products during the first quarter worth about $263,000. Jane Street Group LLC boosted its holdings in Installed Building Products by 270.0% during the first quarter. Jane Street Group LLC now owns 17,192 shares of the construction company's stock worth $2,948,000 after buying an additional 12,545 shares in the last quarter. Hsbc Holdings PLC boosted its holdings in Installed Building Products by 5.9% during the second quarter. Hsbc Holdings PLC now owns 1,643 shares of the construction company's stock worth $296,000 after buying an additional 92 shares in the last quarter. Finally, Jump Financial LLC boosted its holdings in Installed Building Products by 959.6% during the second quarter. Jump Financial LLC now owns 18,109 shares of the construction company's stock worth $3,265,000 after buying an additional 16,400 shares in the last quarter. 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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