JPMorgan Chase & Co. Issues Pessimistic Forecast for Installed Building Products (NYSE:IBP) Stock Price

Key Points

• JPMorgan cut Installed Building Products’ price target sharply to $195 from $284 and kept an underweight rating, implying limited downside from the current share price.
• Broader analyst sentiment has turned cautious: several firms lowered their targets, and the stock now has a consensus rating of Hold with an average target of $247.67.
• IBP shares fell 1.1% to about $200.42 after the report, as investors also weighed a recent earnings miss on both EPS and revenue.

Installed Building Products (NYSE:IBP - Get Free Report) had its price objective decreased by analysts at JPMorgan Chase & Co. from $284.00 to $195.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has an "underweight" rating on the construction company's stock. JPMorgan Chase & Co.'s target price indicates a potential downside of 2.70% from the stock's current price.

Other analysts also recently issued research reports about the stock. The Goldman Sachs Group decreased their price objective on shares of Installed Building Products from $331.00 to $285.00 and set a "buy" rating for the company in a report on Friday, May 8th. DA Davidson decreased their price objective on shares of Installed Building Products from $270.00 to $242.00 and set a "neutral" rating for the company in a report on Monday. Benchmark downgraded shares of Installed Building Products from a "buy" rating to a "hold" rating in a report on Wednesday, February 11th. Truist Financial decreased 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 report on Friday. Finally, Evercore set a $226.00 price objective on shares of Installed Building Products in a report on Friday. One analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $247.67.

Installed Building Products Stock Down 1.1%

Shares of IBP traded down $2.24 during trading hours on Wednesday, reaching $200.42. 178,142 shares of the stock traded hands, compared to its average volume of 370,813. The company has a current ratio of 3.35, a quick ratio of 2.76 and a debt-to-equity ratio of 1.56. The stock has a fifty day simple moving average of $280.73 and a 200 day simple moving average of $282.05. Installed Building Products has a 52 week low of $150.83 and a 52 week high of $349.00. The company has a market cap of $5.40 billion, a price-to-earnings ratio of 21.34, a PEG ratio of 2.85 and a beta of 1.84.

Installed Building Products (NYSE:IBP - Get Free Report) last posted 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). Installed Building Products had a return on equity of 42.28% and a net margin of 8.65%.The company had revenue of $660.50 million for the quarter, compared to analysts' expectations of $668.92 million. During the same quarter last year, the business posted $2.08 EPS. The business's quarterly revenue was down 3.5% on a year-over-year basis. On average, equities analysts forecast that Installed Building Products will post 10.81 EPS for the current year.

Insider Activity

In other news, Director Lawrence A. Hilsheimer purchased 475 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were purchased at an average price of $206.22 per share, with a total value of $97,954.50. Following the completion of the acquisition, the director owned 28,468 shares in the company, valued at $5,870,670.96. This trade represents a 1.70% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Brad A. Wheeler acquired 716 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was acquired at an average price of $209.13 per share, for a total transaction of $149,737.08. Following the transaction, the chief operating officer directly owned 14,988 shares of the company's stock, valued at $3,134,440.44. This represents a 5.02% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders bought 4,046 shares of company stock worth $844,194. Company insiders own 13.80% of the company's stock.

Institutional Trading of Installed Building Products

A number of large investors have recently modified their holdings of the business. Danske Bank A S bought a new position in shares of Installed Building Products in the third quarter worth approximately $25,000. NewEdge Advisors LLC raised its stake in Installed Building Products by 5,000.0% in the third quarter. NewEdge Advisors LLC now owns 102 shares of the construction company's stock valued at $25,000 after purchasing an additional 100 shares in the last quarter. Meeder Asset Management Inc. purchased a new stake in Installed Building Products in the first quarter valued at approximately $30,000. Aster Capital Management DIFC Ltd purchased a new stake in Installed Building Products in the third quarter valued at approximately $33,000. Finally, Northwestern Mutual Wealth Management Co. raised its stake in Installed Building Products by 700.0% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 152 shares of the construction company's stock valued at $37,000 after purchasing an additional 133 shares in the last quarter. Institutional investors own 99.61% of the company's stock.

Key Headlines Impacting Installed Building Products

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

• Positive Sentiment: Multiple insiders bought IBP shares on May 11, including CFO Michael Thomas Miller, COO Brad A. Wheeler, insider Jason R. Niswonger, and Director Lawrence A. Hilsheimer. Heavy insider buying can suggest management believes the stock is undervalued. SEC filing
• Positive Sentiment: DA Davidson set a new $242 price target for Installed Building Products, which still implies upside from recent trading levels even after a more cautious outlook. Article
• Neutral Sentiment: The company also declared a quarterly dividend of $0.39 per share, reinforcing its shareholder-return profile, though the yield is modest at about 0.8%. Article
• Neutral Sentiment: Recent commentary describes IBP as a stable but challenged housing/construction name, with mixed signals around demand and cost trends. Article
• Negative Sentiment: IBP’s latest earnings report missed expectations on both EPS and revenue, and analysts have responded with target cuts and more neutral ratings, which is likely weighing on the stock. 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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