Installed Building Products (NYSE:IBP) Given New $240.00 Price Target at Stephens

Key Points

• Stephens cut its price target on Installed Building Products from $300 to $240 and kept an "equal weight" rating, implying about a 9.2% upside; the consensus analyst target sits at $255.45 with most analysts rating the stock "Hold."
• Q1 results missed estimates: IBP reported $1.79 EPS versus $1.96 expected and $660.5M revenue versus $668.9M, with revenue down 3.5% year-over-year, while the stock is trading around $219.73 well below its 50- and 200-day averages (~$287/$283).
• Large insider selling and heavy institutional ownership: CEO Jeffrey Edwards sold 400,000 shares (~$125.6M at ~$314 each) and a director also sold shares; insiders hold 13.8% of shares while institutional/hedge fund ownership is reported at ~99.6%.

Installed Building Products (NYSE:IBP - Get Free Report) had its price objective reduced by equities researchers at Stephens from $300.00 to $240.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has an "equal weight" rating on the construction company's stock. Stephens' price target would suggest a potential upside of 9.23% from the stock's previous close.

A number of other analysts have also recently issued reports on the company. Wells Fargo & Company dropped their price objective on Installed Building Products from $340.00 to $285.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 8th. Vertical Research raised Installed Building Products from a "sell" rating to a "hold" rating and set a $326.00 price target on the stock in a report on Friday, February 27th. Royal Bank Of Canada raised Installed Building Products from an "underperform" rating to a "sector perform" rating and set a $228.00 price target on the stock in a report on Friday. DA Davidson raised their price target on Installed Building Products from $252.00 to $270.00 and gave the company a "neutral" rating in a report on Wednesday, March 18th. Finally, Wall Street Zen cut Installed Building Products from a "buy" rating to a "hold" rating in a report on Sunday, March 29th. One analyst has rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $255.45.

Installed Building Products Stock Performance

Shares of IBP opened at $219.73 on Friday. The stock's 50-day simple moving average is $287.19 and its 200 day simple moving average is $283.19. The stock has a market capitalization of $5.92 billion, a price-to-earnings ratio of 22.58, a price-to-earnings-growth ratio of 4.15 and a beta of 1.84. The company has a debt-to-equity ratio of 1.20, a quick ratio of 2.44 and a current ratio of 3.03. Installed Building Products has a 52-week low of $150.83 and a 52-week high of $349.00.

Installed Building Products (NYSE:IBP - Get Free Report) last issued its quarterly earnings data 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). The company had revenue of $660.50 million for the quarter, compared to analysts' expectations of $668.92 million. Installed Building Products had a return on equity of 43.71% and a net margin of 8.93%.The business's revenue for the quarter was down 3.5% on a year-over-year basis. During the same period last year, the company posted $2.08 EPS. Research analysts forecast that Installed Building Products will post 10.81 EPS for the current fiscal year.

Insider Transactions at Installed Building Products

In related news, Director Janet E. Jackson sold 1,410 shares of the firm's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $293.31, for a total transaction of $413,567.10. Following the transaction, the director directly owned 5,373 shares of the company's stock, valued at approximately $1,575,954.63. This trade represents a 20.79% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Jeffrey W. Edwards sold 400,000 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $314.06, for a total value of $125,624,000.00. Following the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 13.80% of the company's stock.

Hedge Funds Weigh In On Installed Building Products

A number of large investors have recently modified their holdings of IBP. Price T Rowe Associates Inc. MD raised its holdings 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. TD Asset Management Inc raised its holdings in shares of Installed Building Products by 2,169.2% during the 3rd quarter. TD Asset Management Inc now owns 271,938 shares of the construction company's stock valued at $67,076,000 after buying an additional 259,954 shares in the last quarter. Orion Porfolio Solutions LLC grew its position in Installed Building Products by 4,659.1% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 171,897 shares of the construction company's stock worth $30,996,000 after acquiring an additional 168,285 shares during the last quarter. Ameriprise Financial Inc. grew its position in Installed Building Products by 84.1% during the 2nd quarter. Ameriprise Financial Inc. now owns 276,690 shares of the construction company's stock worth $49,893,000 after acquiring an additional 126,435 shares during the last quarter. Finally, Norges Bank bought a new position in Installed Building Products during the 4th quarter worth approximately $32,359,000. 99.61% of the stock is owned by hedge funds and other institutional investors.

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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