Installed Building Products (NYSE:IBP) Shares Down 6.9% After Analyst Downgrade

Key Points

• Installed Building Products shares fell 6.9% after DA Davidson cut its price target from $270 to $242 and kept a neutral rating. The stock traded as low as $204.74, well below its prior close of $219.99.
• Recent analyst sentiment has turned more cautious overall, with multiple firms lowering targets or downgrading the stock. MarketBeat says IBP now has an average Hold rating and an average target price of $251.83.
• The company recently reported Q1 earnings below expectations, posting $1.79 per share versus the $1.96 consensus, while revenue also missed estimates. Installed Building Products also announced a quarterly dividend of $0.39 per share, payable June 30.

Shares of Installed Building Products, Inc. (NYSE:IBP - Get Free Report) fell 6.9% during mid-day trading on Monday after DA Davidson lowered their price target on the stock from $270.00 to $242.00. DA Davidson currently has a neutral rating on the stock. Installed Building Products traded as low as $204.74 and last traded at $204.9130. 240,170 shares were traded during trading, a decline of 33% from the average session volume of 356,920 shares. The stock had previously closed at $219.99.

IBP has been the subject of a number of other reports. The Goldman Sachs Group decreased their price target on Installed Building Products from $331.00 to $285.00 and set a "buy" rating for the company in a research note on Friday. Wall Street Zen lowered Installed Building Products from a "buy" rating to a "hold" rating in a research note on Sunday, March 29th. Zacks Research lowered Installed Building Products from a "strong-buy" rating to a "hold" rating in a research note on Friday, January 16th. Royal Bank Of Canada raised Installed Building Products from an "underperform" rating to a "sector perform" rating and decreased their price target for the stock from $255.00 to $228.00 in a research note on Friday. Finally, Stephens decreased their target price on Installed Building Products from $300.00 to $240.00 and set an "equal weight" rating for the company in a research report on Friday. One investment analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $251.83.

Insiders Place Their Bets

In other news, Director Janet E. Jackson sold 1,410 shares of Installed Building Products stock in a transaction on Monday, March 9th. The stock was sold at an average price of $293.31, for a total value of $413,567.10. Following the transaction, the director directly owned 5,373 shares in the company, valued at approximately $1,575,954.63. This trade represents a 20.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Jeffrey W. Edwards sold 400,000 shares of Installed Building Products stock in a transaction on 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 completion of the transaction, the chief executive officer owned 1,727,819 shares in the company, valued at $542,638,835.14. This represents a 18.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 13.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Danske Bank A S purchased a new position in Installed Building Products during the 3rd quarter worth $25,000. NewEdge Advisors LLC grew its stake in 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 buying an additional 100 shares during the last quarter. Meeder Asset Management Inc. purchased a new position in Installed Building Products during the 1st quarter worth $30,000. Aster Capital Management DIFC Ltd purchased a new position in Installed Building Products during the 3rd quarter worth $33,000. Finally, Northwestern Mutual Wealth Management Co. grew its stake in 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 buying an additional 133 shares during the last quarter. 99.61% of the stock is currently owned by hedge funds and other institutional investors.

Installed Building Products Trading Down 6.8%

The company has a 50 day moving average of $287.19 and a two-hundred day moving average of $283.19. The company has a debt-to-equity ratio of 1.56, a quick ratio of 2.76 and a current ratio of 3.35. The stock has a market capitalization of $5.52 billion, a PE ratio of 21.82, a P/E/G ratio of 3.05 and a beta of 1.84.

Installed Building Products (NYSE:IBP - Get Free Report) last announced its earnings results 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). The business 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 42.28% and a net margin of 8.65%.The firm's quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter last year, the firm earned $2.08 earnings per share. Sell-side analysts predict that Installed Building Products, Inc. will post 10.81 EPS for the current year.

Installed Building Products Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a yield of 0.8%. The ex-dividend date is Monday, June 15th. Installed Building Products's payout ratio is presently 16.63%.

Installed Building Products Company Profile

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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