TopBuild (NYSE:BLD) Stock Rating Lowered by DA Davidson

Key Points

• DA Davidson downgraded TopBuild from "strong-buy" to "hold," and multiple other firms have trimmed ratings, leaving a consensus analyst rating of Hold with a $456.28 average price target.
• TopBuild beat Q1 estimates with EPS of $3.75 (vs. $3.64 expected) and revenue of $1.45B (+17.2% Y/Y), showing solid margins and ROE despite EPS being below last year's level.
• Major institutional investors have been buying aggressively—several large funds materially increased or initiated positions—leaving institutional ownership at about 95.7%.

TopBuild (NYSE:BLD - Get Free Report) was downgraded by research analysts at DA Davidson from a "strong-buy" rating to a "hold" rating in a report released on Wednesday,Zacks.com reports.

A number of other research analysts have also recently commented on BLD. Benchmark decreased their price objective on TopBuild from $515.00 to $500.00 and set a "buy" rating on the stock in a report on Friday, February 27th. Weiss Ratings cut TopBuild from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, February 27th. Seaport Research Partners reiterated a "neutral" rating on shares of TopBuild in a report on Tuesday, April 7th. Loop Capital cut TopBuild from a "buy" rating to a "hold" rating and set a $485.00 price objective on the stock. in a report on Wednesday. Finally, JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $496.00 target price (up from $487.00) on shares of TopBuild in a research report on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $456.28.

TopBuild Trading Up 2.4%

Shares of BLD stock opened at $438.97 on Wednesday. The company's 50-day moving average price is $400.28 and its 200-day moving average price is $436.68. The company has a current ratio of 2.00, a quick ratio of 1.34 and a debt-to-equity ratio of 1.16. The stock has a market cap of $12.36 billion, a price-to-earnings ratio of 24.66, a PEG ratio of 5.39 and a beta of 1.85. TopBuild has a twelve month low of $273.87 and a twelve month high of $559.47.

TopBuild (NYSE:BLD - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The construction company reported $3.75 earnings per share for the quarter, beating the consensus estimate of $3.64 by $0.11. TopBuild had a net margin of 8.95% and a return on equity of 23.53%. The firm had revenue of $1.45 billion for the quarter, compared to analysts' expectations of $1.41 billion. During the same quarter in the previous year, the company posted $4.63 EPS. The company's revenue was up 17.2% compared to the same quarter last year. As a group, equities analysts predict that TopBuild will post 18.12 earnings per share for the current year.

Hedge Funds Weigh In On TopBuild

Several large investors have recently bought and sold shares of BLD. Victory Capital Management Inc. increased its holdings in TopBuild by 464.5% in the fourth quarter. Victory Capital Management Inc. now owns 777,666 shares of the construction company's stock valued at $324,434,000 after buying an additional 639,915 shares during the last quarter. Capital International Investors increased its holdings in TopBuild by 71.1% in the fourth quarter. Capital International Investors now owns 1,518,093 shares of the construction company's stock valued at $633,346,000 after buying an additional 630,857 shares during the last quarter. Orion Porfolio Solutions LLC increased its stake in TopBuild by 7,961.7% in the second quarter. Orion Porfolio Solutions LLC now owns 395,747 shares of the construction company's stock valued at $128,119,000 after purchasing an additional 390,838 shares during the last quarter. Norges Bank purchased a new position in TopBuild in the fourth quarter valued at approximately $104,947,000. Finally, Artisan Partners Limited Partnership purchased a new position in TopBuild in the fourth quarter valued at approximately $101,450,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

Key Headlines Impacting TopBuild

Here are the key news stories impacting TopBuild this week:

• Positive Sentiment: Q1 results beat revenue and EPS estimates — TopBuild reported revenue of $1.45B (+17.2% Y/Y) and EPS of $3.75, topping consensus and highlighting growth from recent acquisitions. Read More.
• Positive Sentiment: Profitability and returns remain solid — the quarter showed healthy margins and strong ROE (reported roughly mid-20% range), which supports earnings quality despite EPS being lower than a year ago. Read More.
• Neutral Sentiment: Analyst write-ups and earnings snapshots provide context on key metrics — several outlets and research notes dig into segment trends, estimate comparisons and year-ago EPS headwinds. Useful for investors wanting detail on margin drivers and acquisition contribution. Read More.
• Negative Sentiment: Loop Capital downgraded BLD from Buy to Hold and set a $485 price target, signaling reduced conviction in near-term upside despite the beat; this could limit further immediate gains from investors who follow that shop. Read More.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.