Installed Building Products, Inc. (NYSE:IBP) has received an average recommendation of “Hold” from the fourteen brokerages currently monitoring the stock, according to Marketbeat Ratings. The consensus includes two ratings for sell, nine for hold, two for buy, and one for strong buy. The average price target set by analysts for the stock over the next year stands at $226.20.
Several analysts have recently provided insights into the stock’s performance. Notably, Wall Street Zen downgraded Installed Building Products from a “buy” to a “hold” rating on December 20, 2023. Vertical Research initiated coverage with a “sell” rating on October 20, 2023. On the other hand, Evercore ISI set a price target of $265.00 in a report released on November 6, 2023. Royal Bank of Canada raised its price target from $184.00 to $203.00 while maintaining an “underperform” rating on the same day. Weiss Ratings reiterated a “hold (C+)” rating for the stock on December 29, 2023.
Recent Earnings and Dividend Announcement
Installed Building Products last reported its earnings on November 5, 2023, revealing earnings per share of $3.18, surpassing analysts’ estimates of $2.69 by $0.49. The company achieved a return on equity of 62.74% and a net margin of 8.60%. Revenue for the quarter reached $778.20 million, exceeding the forecasted $751.98 million. This marked a 2.3% year-over-year increase.
In conjunction with its earnings report, Installed Building Products announced a quarterly dividend of $0.37 per share, which was distributed on December 31, 2023. Shareholders of record as of December 15, 2023 received this payment, resulting in an annualized dividend of $1.48 and a yield of 0.5%. The company’s payout ratio currently stands at 15.93%.
Insider Activity and Institutional Investment
Recent insider transactions have drawn attention to Installed Building Products. On November 26, 2023, Director Michael H. Thomas sold 2,001 shares at an average price of $268.28, totaling $536,828.28. Following this sale, he retained 8,373 shares, valued at approximately $2,246,308.44, which is a 19.29% reduction in his ownership.
Additionally, insider William Jeffrey Hire sold 5,000 shares on November 7, 2023, at an average price of $251.63, amounting to $1,258,150.00. After this transaction, he owned 32,999 shares, valued at $8,303,538.37, representing a 13.16% decrease in ownership. Company insiders collectively hold 16.20% of the stock.
Institutional investors have also adjusted their positions 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%, owning 102 shares worth $25,000 after purchasing an additional 100 shares. Curio Wealth LLC expanded its holdings by an extraordinary 16,800.0%, now holding 169 shares valued at $30,000.
Overall, hedge funds and institutional investors own a substantial 99.61% of Installed Building Products’ stock.
Founded in 1977 and headquartered in Columbus, Ohio, Installed Building Products has grown from a regional insulation installer to a leading national provider of specialty building products in the U.S. residential construction market. The company partners with homebuilders and contractors to deliver a comprehensive range of interior and exterior finishing services, helping to streamline project coordination and ensure consistent service quality.
