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

Key Points

• Analyst sentiment is cautious on Installed Building Products, with 15 analysts giving it a consensus recommendation of “Reduce.” The average 12-month price target is about $247.67, reflecting muted expectations.
• The company reported weaker-than-expected Q1 earnings, posting EPS of $1.79 versus estimates of $1.96 and revenue of $660.5 million versus $668.9 million expected. Revenue also fell 3.5% year over year.
• Insiders were buying shares in recent transactions, including purchases by an executive and the CFO, while institutional ownership remains extremely high at 99.61%. The company also announced a quarterly dividend of $0.39 per share payable June 30.

Installed Building Products, Inc. (NYSE:IBP - Get Free Report) has been given a consensus recommendation of "Reduce" by the fifteen analysts that are currently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, twelve have given a hold recommendation and one has assigned a buy recommendation to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $247.6667.

A number of equities research analysts have issued reports on the stock. Wells Fargo & Company decreased their price target on shares of Installed Building Products from $285.00 to $250.00 and set an "equal weight" rating for the company in a report on Friday, May 8th. JPMorgan Chase & Co. cut their price objective on shares of Installed Building Products from $284.00 to $195.00 and set an "underweight" rating for the company in a research report on Wednesday, May 13th. Stephens cut their price objective on shares of Installed Building Products from $300.00 to $240.00 and set an "equal weight" rating for the company in a research report on Friday, May 8th. Royal Bank Of Canada set a $242.00 price objective on shares of Installed Building Products in a research report on Monday, May 11th. Finally, Benchmark lowered shares of Installed Building Products from a "buy" rating to a "hold" rating in a research report on Wednesday, February 11th.

Insider Transactions at Installed Building Products

In other news, insider Jason R. Niswonger bought 455 shares of Installed Building Products stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average cost of $214.80 per share, with a total value of $97,734.00. Following the completion of the transaction, the insider directly owned 17,122 shares in the company, valued at $3,677,805.60. This trade represents a 2.73% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Michael Thomas Miller acquired 2,400 shares of the company's stock in a transaction dated Monday, May 11th. The stock was acquired at an average price of $207.82 per share, with a total value of $498,768.00. Following the purchase, the chief financial officer owned 33,219 shares in the company, valued at approximately $6,903,572.58. This represents a 7.79% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 4,046 shares of company stock valued at $844,194 over the last 90 days. Corporate insiders own 13.80% of the company's stock.

Hedge Funds Weigh In On Installed Building Products

A number of hedge funds and other institutional investors have recently made changes to their positions in IBP. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Installed Building Products by 3.6% in 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 purchasing an additional 486 shares in the last quarter. United Services Automobile Association acquired a new position in Installed Building Products in the first quarter worth about $263,000. Jane Street Group LLC raised its position in Installed Building Products by 270.0% in the first quarter. Jane Street Group LLC now owns 17,192 shares of the construction company's stock worth $2,948,000 after purchasing an additional 12,545 shares in the last quarter. Hsbc Holdings PLC raised its position in Installed Building Products by 5.9% in the second quarter. Hsbc Holdings PLC now owns 1,643 shares of the construction company's stock worth $296,000 after purchasing an additional 92 shares in the last quarter. Finally, Jump Financial LLC raised its position in Installed Building Products by 959.6% in the second quarter. Jump Financial LLC now owns 18,109 shares of the construction company's stock worth $3,265,000 after purchasing an additional 16,400 shares in the last quarter. 99.61% of the stock is owned by institutional investors.

Installed Building Products Stock Up 1.1%

IBP stock opened at $204.00 on Wednesday. The company has a debt-to-equity ratio of 1.56, a current ratio of 3.35 and a quick ratio of 2.76. Installed Building Products has a 52-week low of $158.46 and a 52-week high of $349.00. The company has a 50-day moving average of $256.98 and a two-hundred day moving average of $277.63. The stock has a market capitalization of $5.50 billion, a price-to-earnings ratio of 21.75, a price-to-earnings-growth ratio of 4.98 and a beta of 1.71.

Installed Building Products (NYSE:IBP - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The construction company reported $1.79 earnings per share (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 for the quarter, compared to the consensus estimate of $668.92 million. During the same quarter last year, the company earned $2.08 earnings per share. The firm's revenue was down 3.5% on a year-over-year basis. As a group, equities research analysts anticipate that Installed Building Products will post 9.62 EPS for the current year.

Installed Building Products Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be given a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Monday, June 15th. Installed Building Products's dividend payout ratio (DPR) is 16.63%.

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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