TopBuild (NYSE:BLD) Rating Lowered to Hold at Loop Capital

Key Points

• Loop Capital downgraded TopBuild from "buy" to "hold" and set a $485 price target, implying roughly a 13% upside from the current price.
• TopBuild beat Q1 estimates with revenue of $1.45B (vs. $1.41B) and EPS of $3.75 (vs. $3.64), with revenue up 17.2% year-over-year, though EPS declined versus $4.63 a year earlier; profitability remains strong (ROE ~25.7%, net margin ~9.7%).
• Analyst consensus is a "Hold" with an average target price of $451.28 and a mix of ratings across firms (1 Strong Buy, 5 Buy, 9 Hold, 1 Sell).

TopBuild (NYSE:BLD - Get Free Report) was downgraded by equities research analysts at Loop Capital from a "buy" rating to a "hold" rating in a note issued to investors on Wednesday, MarketBeat.com reports. They presently have a $485.00 price objective on the construction company's stock. Loop Capital's target price suggests a potential upside of 13.03% from the stock's current price.

Other research analysts also recently issued reports about the company. Wells Fargo & Company reduced their target price on TopBuild from $525.00 to $475.00 and set an "overweight" rating for the company in a research note on Wednesday, April 8th. Seaport Research Partners reiterated a "neutral" rating on shares of TopBuild in a research note on Tuesday, April 7th. Royal Bank Of Canada lifted their target price on TopBuild from $410.00 to $433.00 and gave the stock a "sector perform" rating in a research note on Friday, February 27th. Zacks Research downgraded TopBuild from a "hold" rating to a "strong sell" rating in a research note on Tuesday, March 3rd. Finally, JPMorgan Chase & Co. reiterated a "neutral" rating and set a $496.00 target price (up from $487.00) on shares of TopBuild in a research note on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $451.28.

TopBuild Stock Performance

Shares of NYSE BLD opened at $429.09 on Wednesday. The company has a current ratio of 1.94, a quick ratio of 1.34 and a debt-to-equity ratio of 1.21. TopBuild has a 12 month low of $273.87 and a 12 month high of $559.47. The stock has a 50 day moving average of $401.60 and a 200-day moving average of $436.65. The company has a market capitalization of $12.08 billion, a P/E ratio of 23.45, a P/E/G ratio of 5.41 and a beta of 1.85.

TopBuild (NYSE:BLD - Get Free Report) last issued its earnings results on Tuesday, May 5th. The construction company reported $3.75 EPS for the quarter, topping the consensus estimate of $3.64 by $0.11. TopBuild had a return on equity of 25.66% and a net margin of 9.65%.The company had revenue of $1.45 billion during the quarter, compared to the consensus estimate of $1.41 billion. During the same period in the previous year, the company posted $4.63 EPS. The firm's revenue for the quarter was up 17.2% compared to the same quarter last year. As a group, equities research analysts predict that TopBuild will post 18.12 EPS for the current year.

Institutional Trading of TopBuild

Institutional investors have recently added to or reduced their stakes in the company. Core Wealth Advisors LLC bought a new stake in TopBuild in the 4th quarter valued at $26,000. Advisory Services Network LLC bought a new stake in shares of TopBuild during the 3rd quarter valued at $27,000. Parallel Advisors LLC lifted its position in shares of TopBuild by 50.0% during the 4th quarter. Parallel Advisors LLC now owns 75 shares of the construction company's stock valued at $31,000 after acquiring an additional 25 shares during the period. Global Retirement Partners LLC lifted its position in shares of TopBuild by 310.5% during the 4th quarter. Global Retirement Partners LLC now owns 78 shares of the construction company's stock valued at $33,000 after acquiring an additional 59 shares during the period. Finally, First Horizon Corp lifted its position in shares of TopBuild by 138.9% during the 4th quarter. First Horizon Corp now owns 86 shares of the construction company's stock valued at $36,000 after acquiring an additional 50 shares during the period. 95.67% of the stock is currently owned by institutional investors.

Trending Headlines about TopBuild

Here are the key news stories impacting TopBuild this week:

• Positive Sentiment: TopBuild topped estimates: Q1 revenue $1.45B vs. ~$1.41B expected and EPS $3.75 vs. $3.64 consensus; revenue grew 17.2% year-over-year. This beat is the primary reason the stock is trading higher following the print. Read More.
• Positive Sentiment: Profitability remains strong — net margin ~9.65% and return on equity ~25.7% — indicating solid operating leverage and cash generation that support investor confidence. Read More.
• Neutral Sentiment: Growth was driven in part by recent acquisitions, which boosted sales but introduce integration and cost synergies timing considerations investors will monitor. Read More.
• Neutral Sentiment: Multiple outlets and snapshots are circulating the same results (Zacks, Yahoo, Business Insider), so near-term price moves reflect broad market digestion rather than a surprise. Read More.
• Negative Sentiment: EPS fell year-over-year (Q1 EPS $3.75 vs. $4.63 a year ago), which highlights margin pressure versus the prior period and may temper enthusiasm despite the beat. Read More.
• Negative Sentiment: The company carries leverage (debt-to-equity ~1.21) and is using acquisitions to drive growth; investors will watch cash flow conversion, integration execution and any guidance commentary for risks. No direct article link — see company filing/release.

About TopBuild

TopBuild Corp. NYSE: BLD is a leading installer and distributor of insulation and building material products serving primarily the U.S. construction market. Headquartered in Daytona Beach, Florida, the company was formed in 2011 as a spin-off from ABF Freight System and has since grown through a combination of organic expansion and targeted acquisitions. TopBuild's core mission is to enhance energy efficiency and comfort in new residential and light commercial construction projects by providing comprehensive insulation solutions and related services.

The company operates through two main segments.

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