TopBuild (NYSE:BLD) Shares Gap Up - Here's Why

Key Points

• TopBuild Corp.'s stock price gapped up from a previous close of $396.24 to an opening price of $413.53, reflecting heightened interest in the company.
• Analyst ratings show a consensus of a "Moderate Buy" for TopBuild, with a target price increase by Benchmark from $375 to $444 and multiple other ratings provided by firms such as Evercore ISI and JPMorgan Chase & Co.
• The company's recent quarterly earnings surpassed expectations, with a reported EPS of $5.31 compared to a consensus estimate of $5.07, despite a year-over-year revenue decline of 5%.

TopBuild Corp. (NYSE:BLD - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $396.24, but opened at $413.53. TopBuild shares last traded at $412.81, with a volume of 94,940 shares.

Wall Street Analyst Weigh In

BLD has been the topic of a number of analyst reports. Benchmark increased their price target on TopBuild from $375.00 to $444.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of TopBuild in a report on Saturday, September 27th. Evercore ISI reduced their target price on TopBuild from $425.00 to $424.00 and set an "in-line" rating on the stock in a report on Monday, September 29th. Loop Capital raised their target price on TopBuild from $360.00 to $400.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. Finally, JPMorgan Chase & Co. raised their target price on TopBuild from $344.00 to $398.00 and gave the company an "overweight" rating in a report on Wednesday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $395.17.

TopBuild Stock Performance

The company has a debt-to-equity ratio of 0.86, a quick ratio of 2.29 and a current ratio of 2.83. The company has a market cap of $11.94 billion, a price-to-earnings ratio of 20.88, a P/E/G ratio of 5.33 and a beta of 1.66. The company has a fifty day moving average of $412.24 and a two-hundred day moving average of $347.12.

TopBuild (NYSE:BLD - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The construction company reported $5.31 earnings per share for the quarter, beating the consensus estimate of $5.07 by $0.24. The company had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.30 billion. TopBuild had a return on equity of 28.32% and a net margin of 11.40%.TopBuild's revenue for the quarter was down 5.0% on a year-over-year basis. During the same quarter last year, the business posted $5.42 EPS. TopBuild has set its FY 2025 guidance at EPS. Equities research analysts anticipate that TopBuild Corp. will post 20.97 EPS for the current year.

Insider Buying and Selling

In related news, CFO Robert M. Kuhns sold 2,000 shares of the firm's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $416.10, for a total transaction of $832,200.00. Following the completion of the transaction, the chief financial officer directly owned 15,633 shares of the company's stock, valued at $6,504,891.30. This trade represents a 11.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Robert M. Buck sold 7,350 shares of the firm's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $415.19, for a total value of $3,051,646.50. Following the transaction, the chief executive officer directly owned 73,225 shares of the company's stock, valued at approximately $30,402,287.75. This represents a 9.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 13,663 shares of company stock valued at $5,709,488 in the last quarter. 0.43% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in BLD. Parallel Advisors LLC raised its position in shares of TopBuild by 111.5% in the 1st quarter. Parallel Advisors LLC now owns 129 shares of the construction company's stock worth $39,000 after acquiring an additional 68 shares in the last quarter. UMB Bank n.a. raised its position in shares of TopBuild by 144.2% in the 1st quarter. UMB Bank n.a. now owns 337 shares of the construction company's stock worth $103,000 after acquiring an additional 199 shares in the last quarter. Wedmont Private Capital bought a new position in shares of TopBuild in the 1st quarter worth about $217,000. GAMMA Investing LLC raised its position in shares of TopBuild by 450.0% in the 1st quarter. GAMMA Investing LLC now owns 495 shares of the construction company's stock worth $151,000 after acquiring an additional 405 shares in the last quarter. Finally, Handelsbanken Fonder AB raised its position in shares of TopBuild by 22.7% in the 1st quarter. Handelsbanken Fonder AB now owns 9,737 shares of the construction company's stock worth $2,969,000 after acquiring an additional 1,800 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

About TopBuild

TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building material products to the construction industry. The company operates in two segments, Installation and Specialty Distribution. It provides insulation products and accessories, glass and windows, rain gutters, garage doors, fireplaces, roofing materials, closet shelving, and other products.

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