Installed Building Products, Inc. (NYSE:IBP) has received an average price target of $226.20 from analysts following the stock, according to a report by Marketbeat Ratings. The consensus among fourteen brokerages indicates a “Hold” recommendation, with two analysts advising a sell, nine suggesting a hold, two recommending a buy, and one issuing a strong buy rating.
The assessment reflects a mix of opinions as several research analysts have recently commented on the company’s performance. Notably, Wall Street Zen downgraded Installed Building Products from a “buy” to a “hold” rating on December 20, 2023. Conversely, Evercore ISI set a price objective of $265.00 in its report published on November 6, 2023, while the Royal Bank of Canada adjusted its price target from $184.00 to $203.00, maintaining an “underperform” rating.
Recent Financial Performance
Installed Building Products recently announced its earnings for the third quarter on November 5, 2023. The company reported earnings per share (EPS) of $3.18, exceeding analysts’ expectations of $2.69 by $0.49. Revenue for the quarter was $778.20 million, surpassing predictions of $751.98 million and reflecting a 2.3% increase from the same period last year.
The company demonstrated strong financial health with a return on equity of 62.74% and a net margin of 8.60%. Analysts anticipate that Installed Building Products will report an EPS of $10.66 for the current fiscal year.
Dividend Announcement and Insider Activity
On December 31, 2023, Installed Building Products paid a quarterly dividend of $0.37 to shareholders who were on record as of December 15, 2023. This translates to an annualized dividend of $1.48, yielding approximately 0.5%. The company’s payout ratio currently stands at 15.93%.
In insider trading news, Director Michael H. Thomas sold 2,001 shares on November 26, 2023, for a total of $536,828.28. Following this transaction, he retains 8,373 shares valued at roughly $2,246,308.44. Additionally, insider William Jeffrey Hire sold 5,000 shares on November 7, 2023, for $1,258,150.00, reducing his holdings by 13.16%.
Institutional Investor Activity
Recent activity among institutional investors indicates a dynamic interest in 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 5,000.0%, now holding 102 shares worth $25,000 after an additional purchase of 100 shares.
Similarly, Curio Wealth LLC boosted its holdings by 16,800.0%, acquiring 169 shares valued at $30,000. Other investors, such as Aster Capital Management DIFC Ltd and SRH Advisors LLC, have also expanded their positions, highlighting a growing confidence in the company. Institutional investors collectively own 99.61% of Installed Building Products.
About Installed Building Products
Founded in 1977 and headquartered in Columbus, Ohio, Installed Building Products, Inc. is a prominent installer of specialty building products in the U.S. residential construction market. The company partners with homebuilders and contractors to deliver a broad array of services, including insulation, drywall finishing, protective coatings, and basement waterproofing systems. This comprehensive approach allows for streamlined project coordination and consistent service quality across various trades.
As Installed Building Products continues to navigate the evolving construction landscape, the market is keenly observing its financial performance and strategic decisions.
