Installed Building Products, Inc. (NYSE:IBP) Sees Significant Drop in Short Interest

Key Points

• Short interest plunged 39.8% to 1.52 million shares as of September 30, representing 6.6% of IBP’s outstanding stock and 3.5 days of average trading volume.
• Analyst sentiment is broadly cautious: two analysts rate the stock Buy, eleven Hold, and one Sell, producing an overall Hold rating and a consensus price target of $230.75.
• IBP shares recently traded at $184.65, well below their 12-month high of $349.00, despite the company beating quarterly earnings and revenue estimates; it also pays a $0.39 quarterly dividend, yielding about 0.8%.

Installed Building Products, Inc. (NYSE:IBP - Get Free Report) was the target of a large drop in short interest during the month of September. As of September 30th, there was short interest totaling 1,517,168 shares, a drop of 39.8% from the September 15th total of 2,520,270 shares. Based on an average daily volume of 438,294 shares, the short-interest ratio is presently 3.5 days. Currently, 6.6% of the company's stock are short sold.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on IBP. Wall Street Zen downgraded Installed Building Products from a "buy" rating to a "hold" rating in a report on Sunday, September 27th. Truist Financial reduced their price objective on Installed Building Products from $200.00 to $160.00 and set a "hold" rating for the company in a report on Thursday, October 8th. Melius Research began coverage on Installed Building Products in a research report on Tuesday, October 6th. They issued a "hold" rating and a $217.00 target price for the company. Wells Fargo & Company decreased their target price on Installed Building Products from $240.00 to $195.00 and set an "equal weight" rating for the company in a research report on Friday. Finally, Zacks Research cut shares of Installed Building Products from a "strong-buy" rating to a "hold" rating in a research note on Monday. Two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $230.75.

Installed Building Products Stock Performance

IBP stock traded down $3.29 on Friday, hitting $184.65. The company had a trading volume of 219,507 shares, compared to its average volume of 401,476. Installed Building Products has a 12-month low of $176.15 and a 12-month high of $349.00. The company has a current ratio of 2.98, a quick ratio of 2.41 and a debt-to-equity ratio of 1.62. The stock's 50-day simple moving average is $216.89 and its 200 day simple moving average is $230.32. The stock has a market cap of $4.91 billion, a price-to-earnings ratio of 19.87, a P/E/G ratio of 8.06 and a beta of 1.71.

Installed Building Products (NYSE:IBP - Get Free Report) last announced its earnings results on Thursday, August 6th. The construction company reported $2.91 earnings per share for the quarter, beating analysts' consensus estimates of $2.55 by $0.36. The business had revenue of $777.80 million during the quarter, compared to analyst estimates of $743.33 million. Installed Building Products had a net margin of 8.46% and a return on equity of 42.12%. The company's quarterly revenue was up 2.3% compared to the same quarter last year. During the same period in the previous year, the business earned $2.95 EPS. As a group, equities research analysts expect that Installed Building Products will post 9.86 earnings per share for the current fiscal year.

Installed Building Products Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a $0.39 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.56 annualized dividend and a dividend yield of 0.8%. Installed Building Products's payout ratio is presently 16.79%.

Insider Buying and Selling

In other Installed Building Products news, Director Janet Jackson sold 1,086 shares of Installed Building Products stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $237.06, for a total value of $257,447.16. Following the completion of the sale, the director owned 5,142 shares of the company's stock, valued at approximately $1,218,962.52. This trade represents a 17.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 13.80% of the company's stock.

Institutional Trading of Installed Building Products

A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in Installed Building Products in the second quarter worth about $1,055,034,000. Reinhart Partners LLC. purchased a new stake in shares of Installed Building Products during the 3rd quarter valued at about $87,114,000. Bank of America Corp DE purchased a new stake in shares of Installed Building Products during the 2nd quarter valued at about $62,418,000. Bamco Inc. NY purchased a new stake in shares of Installed Building Products during the 2nd quarter valued at about $45,580,000. Finally, Paralel Advisors LLC bought a new position in shares of Installed Building Products in the 2nd quarter worth approximately $37,924,000. Hedge funds and other institutional investors own 99.61% of the company's stock.

About Installed Building Products

Installed Building Products, Inc NYSE: IBP is a residential and commercial building-products installation company headquartered in Columbus, Ohio. The company primarily serves homebuilders, contractors and homeowners by providing installation services for products used in new construction, renovation and remodeling projects.

Its core business is insulation installation, including fiberglass, spray foam, cellulose and other insulation products. Installed Building Products also offers installation of complementary building products such as garage doors, gutters, windows, doors, shower enclosures and closet systems, depending on the market.

Founded in 1977, the company has expanded through a network of local operating businesses serving customers across much of the United States.

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