Installed Building Products (NYSE:IBP) Hits New 12-Month Low - Should You Sell?

Key Points

• Installed Building Products fell to a new 52-week low, trading as low as $191.19 and well below its 50-day and 200-day moving averages of $226.45 and $236.88, respectively.
• Analysts remain cautious, with an overall “Hold” rating from MarketBeat and an average price target of $245.36; two analysts rate the stock Buy, 10 Hold, and one Sell.
• The company recently exceeded quarterly expectations, reporting $2.91 in EPS and $777.8 million in revenue, while paying a quarterly dividend of $0.39 per share, equal to a 0.8% annual yield.

Installed Building Products, Inc. (NYSE:IBP - Get Free Report) hit a new 52-week low during mid-day trading on Thursday. The stock traded as low as $191.19 and last traded at $192.1030, with a volume of 303969 shares changing hands. The stock had previously closed at $193.94.

Wall Street Analysts Forecast Growth

IBP has been the topic of several recent research reports. Stifel Nicolaus began coverage on shares of Installed Building Products in a research report on Monday, September 14th. They issued a "buy" rating and a $240.00 price target on the stock. DA Davidson upped their price objective on Installed Building Products from $242.00 to $250.00 and gave the stock a "neutral" rating in a research note on Monday, August 10th. Wall Street Zen cut Installed Building Products from a "buy" rating to a "hold" rating in a report on Sunday. Wells Fargo & Company lowered their target price on Installed Building Products from $245.00 to $240.00 and set an "equal weight" rating on the stock in a research report on Friday, September 11th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Installed Building Products in a report on Tuesday, August 18th. Two investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $245.36.

Installed Building Products Price Performance

The firm has a market cap of $5.11 billion, a PE ratio of 20.68, a P/E/G ratio of 3.61 and a beta of 1.71. The firm's fifty day simple moving average is $226.45 and its two-hundred day simple moving average is $236.88. The company has a quick ratio of 2.41, a current ratio of 2.98 and a debt-to-equity ratio of 1.62.

Installed Building Products (NYSE:IBP - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The construction company reported $2.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.55 by $0.36. The firm had revenue of $777.80 million during the quarter, compared to analysts' expectations 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 revenue for the quarter was up 2.3% compared to the same quarter last year. During the same period in the prior year, the company posted $2.95 earnings per share. As a group, research analysts expect that Installed Building Products, Inc. will post 9.89 EPS for the current year.

Installed Building Products Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a dividend of $0.39 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.56 dividend on an annualized basis and a yield of 0.8%. Installed Building Products's dividend payout ratio (DPR) is currently 16.79%.

Insider Activity at Installed Building Products

In other news, Director Janet Jackson sold 1,086 shares of the business's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $237.06, for a total value of $257,447.16. Following the transaction, the director directly owned 5,142 shares in the company, valued at $1,218,962.52. The trade was a 17.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 13.80% of the stock is owned by insiders.

Institutional Trading of Installed Building Products

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in shares of Installed Building Products in the second quarter worth about $1,055,034,000. Bank of America Corp DE bought a new position in Installed Building Products during the second quarter valued at approximately $62,418,000. Bamco Inc. NY bought a new position in Installed Building Products during the second quarter valued at approximately $45,580,000. Paralel Advisors LLC purchased a new position in Installed Building Products during the 2nd quarter valued at approximately $37,924,000. Finally, Bank of New York Mellon Corp purchased a new position in Installed Building Products during the 2nd quarter valued at approximately $37,771,000. Institutional investors own 99.61% of the company's stock.

Installed Building Products Company Profile

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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