Installed Building Products (NYSE:IBP) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded Installed Building Products from hold to strong sell, adding to a wave of cautious analyst sentiment around the stock.
• Other firms have also turned more negative: JPMorgan cut its price target to $195 and rated the shares underweight, while the overall analyst consensus now sits at Reduce with an average target of $247.67.
• The company recently reported weaker-than-expected Q1 earnings, posting $1.79 EPS versus $1.96 expected and revenue of $660.5 million versus $668.9 million expected, with revenue down 3.5% year over year.

Installed Building Products (NYSE:IBP - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Tuesday,Zacks.com reports.

Other equities analysts also recently issued research reports about the stock. 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. Evercore set a $226.00 price objective on shares of Installed Building Products in a research report on Friday, May 8th. Benchmark downgraded shares of Installed Building Products from a "buy" rating to a "hold" rating in a research report on Wednesday, February 11th. Weiss Ratings downgraded shares of Installed Building Products from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, May 7th. Finally, Truist Financial cut their price objective 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. One equities research analyst has rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average price target of $247.67.

Installed Building Products Stock Up 1.6%

Shares of NYSE:IBP opened at $205.90 on Tuesday. The stock has a market cap of $5.55 billion, a P/E ratio of 21.95, a P/E/G ratio of 2.89 and a beta of 1.84. The firm has a fifty day moving average price of $278.32 and a 200 day moving average price of $281.62. 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 1-year low of $150.83 and a 1-year high of $349.00.

Installed Building Products (NYSE:IBP - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The construction company reported $1.79 earnings per share for the quarter, missing analysts' consensus estimates of $1.96 by ($0.17). The business had revenue of $660.50 million for the quarter, compared to analyst estimates of $668.92 million. Installed Building Products had a return on equity of 42.28% and a net margin of 8.65%.The firm's revenue for the quarter was down 3.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.08 EPS. Sell-side analysts predict that Installed Building Products will post 10.51 EPS for the current year.

Insider Transactions at Installed Building Products

In other Installed Building Products news, COO Brad A. Wheeler acquired 716 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were purchased at an average cost of $209.13 per share, with a total value of $149,737.08. Following the purchase, the chief operating officer owned 14,988 shares in the company, valued at approximately $3,134,440.44. The trade was a 5.02% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Jason R. Niswonger acquired 455 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was acquired at an average cost of $214.80 per share, for a total transaction of $97,734.00. Following the completion of the purchase, the insider owned 17,122 shares in the company, valued at $3,677,805.60. The trade was a 2.73% increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired 4,046 shares of company stock worth $844,194 in the last 90 days. Insiders own 13.80% of the company's stock.

Institutional Investors Weigh In On Installed Building Products

Several hedge funds have recently modified their holdings of IBP. Danske Bank A S acquired a new stake in shares of Installed Building Products during the 3rd quarter worth about $25,000. NewEdge Advisors LLC boosted its stake in shares of Installed Building Products by 5,000.0% during the 3rd quarter. NewEdge Advisors LLC now owns 102 shares of the construction company's stock worth $25,000 after purchasing an additional 100 shares during the last quarter. Meeder Asset Management Inc. acquired a new stake in shares of Installed Building Products during the 1st quarter worth about $30,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of Installed Building Products during the 3rd quarter worth about $33,000. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of Installed Building Products by 700.0% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 152 shares of the construction company's stock worth $37,000 after purchasing an additional 133 shares during the last quarter. 99.61% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Installed Building Products

Here are the key news stories impacting Installed Building Products this week:

• Positive Sentiment: Several IBP executives and directors bought shares this week, including the CFO, COO, and other insiders, signaling confidence that the stock may be undervalued.
• Positive Sentiment: DA Davidson’s new $242 price target still implies upside from recent levels, suggesting some analysts expect a rebound. Article
• Neutral Sentiment: Recent commentary on IBP points to mixed housing-market signals, with volume weakness and cost headwinds balancing the company’s otherwise stable market position. Article
• Negative Sentiment: JPMorgan’s price target cut to $195 and underweight rating are the clearest bearish catalysts, reinforcing concern about near-term earnings pressure and limited upside. Article

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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