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

Key Points

• Installed Building Products shares fell 5.7% to a new 52-week low of $178.02, trading well below their 50-day and 200-day moving averages.
• Analyst sentiment is largely cautious: the stock has a consensus “Hold” rating from 14 analysts, with an average price target of $234.50, despite some firms maintaining “Buy” ratings.
• The company recently beat quarterly earnings and revenue expectations, while paying a $0.39 quarterly dividend. Its annualized dividend yield is 0.9%, and institutional investors own 99.61% of the shares.

Installed Building Products, Inc. (NYSE:IBP - Get Free Report)'s share price hit a new 52-week low on Wednesday. The stock traded as low as $178.02 and last traded at $177.7330, with a volume of 103,037 shares. The stock had previously closed at $188.26.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. Melius Research assumed coverage on Installed Building Products in a research note on Tuesday, October 6th. They issued a "hold" rating and a $217.00 price target for the company. The Goldman Sachs Group dropped their price objective on Installed Building Products from $297.00 to $257.00 and set a "buy" rating for the company in a report on Monday. Wall Street Zen cut Installed Building Products from a "buy" rating to a "hold" rating in a report on Sunday, September 27th. Stifel Nicolaus started coverage on Installed Building Products in a research report on Monday, September 14th. They set a "buy" rating and a $240.00 target price for the company. Finally, Wells Fargo & Company reduced their target price on Installed Building Products from $245.00 to $240.00 and set an "equal weight" rating on the stock in a report on Friday, September 11th. Two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $234.50.

Installed Building Products Trading Down 5.7%

The firm's 50-day simple moving average is $219.21 and its 200 day simple moving average is $231.44. The company has a debt-to-equity ratio of 1.62, a current ratio of 2.98 and a quick ratio of 2.41. The firm has a market capitalization of $4.72 billion, a price-to-earnings ratio of 19.10, a P/E/G ratio of 8.29 and a beta of 1.71.

Installed Building Products (NYSE:IBP - Get Free Report) last issued 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 firm had revenue of $777.80 million for the quarter, compared to the consensus estimate of $743.33 million. Installed Building Products had a return on equity of 42.12% and a net margin of 8.46%. The company's revenue was up 2.3% compared to the same quarter last year. During the same quarter last year, the business posted $2.95 EPS. Equities analysts expect that Installed Building Products, Inc. will post 9.86 earnings per share for the current year.

Installed Building Products Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Tuesday, September 15th. Installed Building Products's payout ratio is presently 16.79%.

Insider Activity at Installed Building Products

In other news, Director Janet Jackson sold 1,086 shares of Installed Building Products stock in a transaction on Thursday, September 3rd. The shares were 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 in the company, valued at $1,218,962.52. The trade was a 17.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 13.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Meeder Asset Management Inc. purchased a new position in shares of Installed Building Products in the 1st quarter valued at $30,000. Keating Financial Advisory Services Inc. purchased a new position in shares of Installed Building Products in the second quarter worth about $31,000. Parallel Advisors LLC raised its holdings in shares of Installed Building Products by 446.7% during the first quarter. Parallel Advisors LLC now owns 164 shares of the construction company's stock worth $44,000 after purchasing an additional 134 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new position in shares of Installed Building Products in the 2nd quarter valued at $52,000. Finally, Rockefeller Capital Management L.P. grew its holdings in Installed Building Products by 29.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 259 shares of the construction company's stock valued at $67,000 after purchasing an additional 59 shares during the period. 99.61% of the stock is owned by institutional investors.

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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