Installed Building Products (NYSE:IBP) Shares Gap Up on Analyst Upgrade

Key Points

• Installed Building Products shares jumped after Deutsche Bank upgraded the stock from Hold to Buy, setting a $260 price target; shares opened at $232.95 versus the prior close of $223.76.
• Analyst views remain mixed: the stock has a consensus Hold rating and an average price target of $235.21, with 3 Buy, 11 Hold, and 2 Sell ratings.
• Quarterly results were mixed: EPS of $2.76 missed estimates of $2.83, while revenue of $808.4 million topped forecasts and rose 3.9% year over year. The company also announced a quarterly dividend of $0.39 per share.

Installed Building Products, Inc. (NYSE:IBP - Get Free Report)'s share price gapped up prior to trading on Friday after Deutsche Bank upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $223.76, but opened at $232.95. Deutsche Bank now has a $260.00 price target on the stock. Installed Building Products shares last traded at $228.17, with a volume of 29,216 shares traded.

Several other research firms have also recently commented on IBP. Wells Fargo & Company reduced 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, October 16th. Evercore set a $222.00 price target on Installed Building Products in a report on Friday, September 25th. Wall Street Zen downgraded Installed Building Products from a "buy" rating to a "hold" rating in a research report on Sunday, September 27th. The Goldman Sachs Group reissued a "buy" rating and issued a $261.00 price target on shares of Installed Building Products in a research note on Friday, November 6th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Installed Building Products in a research note on Tuesday, August 18th. Three research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Installed Building Products currently has an average rating of "Hold" and a consensus target price of $235.21.

Insider Transactions at Installed Building Products

In other Installed Building Products news, Director Janet Jackson sold 1,086 shares of Installed Building Products stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $237.06, for a total transaction of $257,447.16. Following the completion of the sale, the director owned 5,142 shares of the company's stock, 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 document filed with the SEC, which is available at this hyperlink. 13.80% of the stock is currently owned by company insiders.

Trending Headlines about Installed Building Products

Investors following IBP have been watching these headlines:

• Neutral Sentiment: Market reaction to the acquisition was mixed: one report noted a rally after the Old Dominion deal, while another described the stock as flat. Investors may be weighing the platform’s growth potential against the size and execution demands of the transaction. Read More.
• Negative Sentiment: Valuation and operating pressures remain concerns. A recent analysis highlighted margin pressure, and IBP’s latest reported quarter showed EPS of $2.76, below the $2.83 consensus, despite revenue exceeding estimates and rising year over year. Read More.
• Negative Sentiment: Zacks Research downgraded IBP from “Hold” to “Strong Sell,” underscoring the split in analyst views following the company’s acquisition announcement. Read More.

Institutional Investors Weigh In On Installed Building Products

A number of hedge funds and other institutional investors have recently modified their holdings of IBP. Benjamin Edwards Inc. raised its holdings in Installed Building Products by 2.5% during the 3rd quarter. Benjamin Edwards Inc. now owns 4,000 shares of the construction company's stock valued at $769,000 after buying an additional 98 shares during the last quarter. Advisors Asset Management Inc. bought a new stake in Installed Building Products in the 3rd quarter worth $1,197,000. GW&K Investment Management LLC purchased a new position in shares of Installed Building Products in the third quarter valued at about $3,475,000. Boston Partners purchased a new position in shares of Installed Building Products in the third quarter valued at about $25,610,000. Finally, Stephens Investment Management Group LLC raised its stake in shares of Installed Building Products by 1.6% during the third quarter. Stephens Investment Management Group LLC now owns 178,028 shares of the construction company's stock valued at $34,160,000 after acquiring an additional 2,757 shares during the last quarter. Institutional investors own 99.61% of the company's stock.

Installed Building Products Trading Up 2.1%

The company has a debt-to-equity ratio of 1.47, a current ratio of 3.12 and a quick ratio of 2.54. The firm's 50 day moving average price is $202.81 and its 200 day moving average price is $243.72. The stock has a market capitalization of $6.07 billion, a P/E ratio of 25.98, a P/E/G ratio of 10.41 and a beta of 1.65.

Installed Building Products (NYSE:IBP - Get Free Report) last posted its earnings results on Thursday, November 5th. The construction company reported $2.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.83 by ($0.07). The business had revenue of $808.40 million during the quarter, compared to the consensus estimate of $787.70 million. Installed Building Products had a return on equity of 39.86% and a net margin of 7.87%. The firm's revenue for the quarter was up 3.9% compared to the same quarter last year. During the same period in the previous year, the business earned $3.18 earnings per share. As a group, equities research analysts expect that Installed Building Products, Inc. will post 9.54 earnings per share for the current fiscal year.

Installed Building Products Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be paid a dividend of $0.39 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $1.56 annualized dividend and a dividend yield of 0.7%. Installed Building Products's payout ratio is 17.75%.

About Installed Building Products

Installed Building Products, Inc. is a U.S. building-products installation company headquartered in Columbus, Ohio. Founded in 1977, the company serves residential builders, commercial contractors, and homeowners through a network of local operating businesses across the United States. The company's core business is installing insulation in new construction and existing buildings. Its offerings include fiberglass, cellulose, and spray-foam insulation, along with related weatherization services. Installed Building Products also installs complementary products such as garage doors, rain gutters, shower doors, and closet shelving.

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