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

Key Points

• Wall Street sentiment is cautious: Installed Building Products has a consensus analyst rating of “Reduce” from 15 brokerages, with most analysts assigning hold ratings and an average 1-year price target of about $247.67.
• Recent earnings missed expectations: The company reported $1.79 EPS versus the expected $1.96, while revenue of $660.5 million also came in slightly below estimates and fell 3.5% year over year.
• Insiders have been buying shares and the company remains a dividend payer: The CFO and a director both purchased stock recently, and IBP announced a quarterly dividend of $0.39 per share, implying a 0.7% yield.

Installed Building Products, Inc. (NYSE:IBP - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the fifteen brokerages that are covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, twelve have assigned a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $247.6667.

IBP has been the topic of several research reports. Zacks Research lowered shares of Installed Building Products from a "hold" rating to a "strong sell" rating in a report on Tuesday, May 12th. Truist Financial decreased their target price on shares of Installed Building Products from $250.00 to $200.00 and set a "hold" rating for the company in a research report on Friday, May 8th. The Goldman Sachs Group decreased their target price on shares of Installed Building Products from $331.00 to $285.00 and set a "buy" rating for the company in a research report on Friday, May 8th. Stephens decreased their target price 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. Finally, Weiss Ratings downgraded shares of Installed Building Products from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, May 21st.

Insider Activity at Installed Building Products

In related news, CFO Michael Thomas Miller bought 2,400 shares of Installed Building Products stock in a transaction dated Monday, May 11th. The stock was purchased at an average cost of $207.82 per share, with a total value of $498,768.00. Following the transaction, the chief financial officer directly owned 33,219 shares of the company's stock, valued at approximately $6,903,572.58. The trade was a 7.79% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lawrence A. Hilsheimer bought 475 shares of Installed Building Products stock in a transaction dated Monday, May 11th. The shares were bought at an average cost of $206.22 per share, with a total value of $97,954.50. Following the completion of the transaction, the director directly owned 28,468 shares in the company, valued at approximately $5,870,670.96. This trade represents a 1.70% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought 5,036 shares of company stock valued at $1,042,807 over the last quarter. 13.80% of the stock is currently owned by insiders.

Institutional Trading of Installed Building Products

A number of institutional investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD lifted its stake in shares of Installed Building Products by 26.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,551,161 shares of the construction company's stock valued at $402,356,000 after buying an additional 328,725 shares in the last quarter. Giverny Capital Inc. lifted its stake in Installed Building Products by 0.9% in the 4th quarter. Giverny Capital Inc. now owns 519,236 shares of the construction company's stock worth $134,685,000 after purchasing an additional 4,500 shares in the last quarter. First Trust Advisors LP lifted its stake in Installed Building Products by 0.3% in the 4th quarter. First Trust Advisors LP now owns 400,748 shares of the construction company's stock worth $103,950,000 after purchasing an additional 1,238 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in Installed Building Products by 52.7% in the 4th quarter. Goldman Sachs Group Inc. now owns 355,211 shares of the construction company's stock worth $92,138,000 after purchasing an additional 122,561 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in Installed Building Products by 1.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 350,996 shares of the construction company's stock worth $91,045,000 after purchasing an additional 5,384 shares in the last quarter. 99.61% of the stock is currently owned by hedge funds and other institutional investors.

Installed Building Products Price Performance

Shares of NYSE IBP opened at $232.59 on Friday. The firm's 50-day moving average price is $233.58 and its 200-day moving average price is $270.87. Installed Building Products has a 1-year low of $176.93 and a 1-year high of $349.00. The firm has a market capitalization of $6.27 billion, a P/E ratio of 24.80, a P/E/G ratio of 5.76 and a beta of 1.71. The company has a current ratio of 3.35, a quick ratio of 2.76 and a debt-to-equity ratio of 1.56.

Installed Building Products (NYSE:IBP - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The construction company reported $1.79 earnings per share for the quarter, missing the consensus estimate 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 company had revenue of $660.50 million for the quarter, compared to analyst estimates of $668.92 million. During the same quarter in the prior year, the company posted $2.08 EPS. Installed Building Products's revenue for the quarter was down 3.5% on a year-over-year basis. Equities research analysts anticipate that Installed Building Products will post 9.57 earnings per share for the current fiscal year.

Installed Building Products Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, June 15th. Installed Building Products's dividend payout ratio is presently 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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