Installed Building Products, Inc. (NYSE:IBP) has received an average price target of $226.20 from analysts covering the stock, according to data from Marketbeat Ratings. Fourteen brokerages have provided recommendations, with a consensus rating of “Hold.” Among these, two analysts have issued a sell rating, nine have recommended holding, two analysts have given a buy rating, and one has assigned a strong buy rating.
Several research firms have recently assessed the company’s stock. On December 20, 2023, Wall Street Zen downgraded Installed Building Products from a “buy” to a “hold.” In contrast, Vertical Research initiated coverage with a sell rating on October 20, 2023. On November 6, Evercore ISI set a price objective of $265.00, while Royal Bank of Canada raised its target from $184.00 to $203.00, maintaining an “underperform” rating. Weiss Ratings reiterated a “hold (C+)” rating on December 29, 2023.
Recent Performance and Financial Results
Installed Building Products reported a 6.2% increase in stock price following its most recent earnings announcement on November 5, 2023. The company achieved earnings per share of $3.18 for the quarter, surpassing analysts’ expectations of $2.69 by $0.49. The firm also reported a return on equity of 62.74% and a net margin of 8.60%. Revenue for the quarter reached $778.20 million, exceeding analyst estimates of $751.98 million and reflecting a year-over-year increase of 2.3%.
Analysts project that Installed Building Products will generate an earnings per share of $10.66 for the current fiscal year.
Dividend Announcement and Insider Transactions
The company has also declared a quarterly dividend of $0.37 per share, paid on December 31, 2023, to shareholders recorded as of December 15, 2023. This annualizes to a dividend of $1.48 with a yield of 0.5%. The ex-dividend date was also December 15, 2023, and the payout ratio currently stands at 15.93%.
In insider activity, Director Michael H. Thomas sold 2,001 shares on November 26, 2023, at an average price of $268.28, totaling $536,828.28. Following this transaction, he holds 8,373 shares valued at approximately $2,246,308.44, marking a 19.29% decrease in his ownership. Additionally, insider William Jeffrey Hire sold 5,000 shares on November 7, 2023, for $1,258,150.00, resulting in a 13.16% reduction in his holdings.
Institutional Investor Activity
Recent moves by institutional investors have also impacted Installed Building Products. Danske Bank A S acquired a new stake valued at approximately $25,000 during the third quarter. NewEdge Advisors LLC significantly increased its stake by 5,000% during the same period, now owning 102 shares valued at $25,000 after purchasing an additional 100 shares. Curio Wealth LLC boosted its holdings by 16,800%, now owning 169 shares worth $30,000 following similar acquisitions.
Overall, institutional investors control 99.61% of Installed Building Products’ stock, reflecting strong confidence in the company’s market position.
About Installed Building Products
Founded in 1977 and headquartered in Columbus, Ohio, Installed Building Products, Inc. is a prominent installer of specialty building products within the U.S. residential construction market. The company collaborates with homebuilders and contractors to provide a comprehensive range of interior and exterior finishing services, including insulation and drywall finishing. By offering a single-source solution, Installed Building Products aims to streamline project coordination and maintain high service quality across various trades. The company has expanded from a regional insulation installer to a nationwide platform operating in nearly every state.
