Installed Building Prods Stock (NYSE: IBP)

Installed Building Prods (NYSE:IBP) Stock, Quote.Headers.trade-ideas

Installed Building Prods

Installed Building Products Inc is an insulation installer serving the residential new construction market and are also a diversified installer of complementary building products, including waterproofing, fire-stopping and fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors and other products throughout the United States. The company installs fiberglass insulation, spray foam insulation, and cellulose insulation. The company has three operating segments consisting of Installation, Manufacturing and Distribution operations. Majority of revenue is generated from Installation segment.

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Installed Building Products (NYSE: IBP) came out with quarterly earnings of $3.02 per share, beating the Zacks Consensus Estimate of $2.89 per share. This compares to earnings of $2.62 per share a year ago. These figures are adjusted for non-recurring items.

Installed Building Products Beats Q2 Earnings Estimates

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Installed Building Products, Inc. Common Stock

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Shares of housing-related stocks are trading higher after the Fed policy decision to cut rates by 50 basis points, which could help curb housing unaffordability and increase demand.

Shares of housing stocks and homebuilders are trading higher. The sector may be on watch amid a drop in yields and as investors await rate cuts.

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Shares of building and construction-related stocks are trading lower after July construction spending data missed estimates. The sector may be moving lower amid overall market weakness after August's ISM Manufacturing PMI data indicated an economic contraction.

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Shares of household durable companies are trading higher following strong New Home Sales economic data for July. Also, the sector may be moving in sympathy with the market after Fed Chair Powell offered an optimistic U.S. economic outlook and indicated future rate cuts.

Shares of homebuilders are trading higher in sympathy with Toll Brothers, which reported better-than-expected Q3 financial results and issued guidance above estimates.

Stephens &amp; Co. analyst Trey Grooms reiterates Installed Building Prods (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>) with a Equal-Weight and maintains $240 price target.

Price Target

Reiteration

Stephens & Co. Reiterates Equal-Weight on Installed Building Prods, Maintains $240 Price Target

RBC Capital analyst Mike Dahl maintains Installed Building Prods (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>) with a Sector Perform and raises the price target from $201 to $203.

RBC Capital Maintains Sector Perform on Installed Building Prods, Raises Price Target to $203

Goldman Sachs analyst Susan Maklari maintains Installed Building Prods (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>) with a Buy and raises the price target from $260 to $295.

Goldman Sachs Maintains Buy on Installed Building Prods, Raises Price Target to $295

Truist Securities analyst Keith Hughes maintains Installed Building Prods (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>) with a Hold and raises the price target from $235 to $240.

Truist Securities Maintains Hold on Installed Building Prods, Raises Price Target to $240

Installed Building Products (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ibp#NYSE">IBP</a>) came out with quarterly earnings of $3.02 per share, beating the Zacks Consensus Estimate of $2.89 per share. This compares to earnings of $2.62 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 4.50%. A quarter ago, it was expected that this residential insulation installer would post earnings of $2.23 per share when it actually produced earnings of $2.47, delivering a surprise of 10.76%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Installed Building Products, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $737.6 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.84%. This compares to year-ago revenues of $692.1 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock&#39;s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management&#39;s commentary on the earnings call.
Installed Building Products shares have added about 47.9% since the beginning of the year versus the S&amp;P 500&#39;s gain of 15.8%.
<h2>What&#39;s Next for Installed Building Products?</h2>
While Installed Building Products has outperformed the market so far this year, the question that comes to investors&#39; minds is: what&#39;s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company&#39;s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Installed Building Products: unfavorable. While the magnitude and direction of estimate revisions could change following the company&#39;s just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.11 on $770.55 million in revenues for the coming quarter and $11.57 on $2.99 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Owens Corning (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oc#NYSE">OC</a>), is yet to report results for the quarter ended June 2024. The results are expected to be released on August 6.
This construction materials company is expected to post quarterly earnings of $4.37 per share in its upcoming report, which represents a year-over-year change of +3.6%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.
Owens Corning&#39;s revenues are expected to be $2.87 billion, up 12.1% from the year-ago quarter.
<a href="https://www.zacks.com/stock/news/2313964/installed-building-products-ibp-beats-q2-earnings-estimates?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_4-2313964">To read this article on Zacks.com click here.</a>

Installed Building Products shares are trading lower after the company reported worse-than-expected Q2 financial results.

Guidance

Installed Building Products Says Outlook For 2024 Remains Positive, Given Its Current End Market Exposure

Installed Building Prods (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>) reported quarterly earnings of $2.84 per share which missed the analyst consensus estimate of $2.88 by 1.39 percent. This is a 8.4 percent increase over earnings of $2.62 per share from the same period last year. The company reported quarterly sales of $737.600 million which missed the analyst consensus estimate of $745.498 million by 1.06 percent. This is a 6.57 percent increase over sales of $692.100 million the same period last year.

Earnings Misses

Installed Building Prods Q2 2024 Adj. EPS $2.84 Misses $2.88 Estimate, Sales $737.600M Miss $745.498M Estimate

Installed Building Products Acquires Euroview Enterprises, Contract Mirror and Supply, and CLM Solutions; Adds $20M Annual Revenue; Expands Presence In Illinois And Minnesota With Focus On Residential And Commercial Projects

Homebuilder stocks surged to record highs on Friday, driven by a positive inflation report that cemented expectations for interest <a href="https://www.benzinga.com/topic/interest-rates">rate cuts in September.</a>
The Personal Consumption Expenditure (PCE) price index — commonly referred to as the Fed&#8217;s favorite inflation measure — fell from 2.6% year-on-year to 2.5% in <a href="https://www.benzinga.com/economics/macro-economic-events/24/07/39983210/feds-preferred-inflation-measure-shows-mixed-readings-personal-income-spending-fa">June 2024, matching expectations. </a>
The iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>), a key basket tracking U.S. homebuilder equity performances, jumped 3.8%, marking its third consecutive week of gains. 
Chart: U.S. Home Construction ETF Reaches Record Highs
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="441" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/26102927/image-50-1024x441.png" alt="" class="wp-image-459652" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/26102927/image-50-1024x441.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/26102927/image-50-300x129.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/26102927/image-50-768x330.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/26102927/image-50-1536x661.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/26102927/image-50.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image:<a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent072624&amp;t=be2bearmibe3na1"> Benzinga Pro </a></figcaption></figure>
Over the past three weeks, U.S. homebuilder stocks have surged by more than 20%, spurred by the anticipation of lower interest rates benefiting rate-sensitive sectors like home construction.
Market participants are now fully pricing in a Federal Reserve rate cut in September, with expectations for at least one more reduction by December 2024. 
&#8220;Homebuilders are trading at the high-end of the&nbsp;historical&nbsp;valuation&nbsp;range, which we think is justified by higher return-on-equity (ROE). On average, we forecast 22% return-on-equity compared to the 2019 level of 20%,&#8221; Bank of America analyst Rafe Jadrosich wrote in a recent report. 
Historically, similar valuation levels in 2018 and 2021 led to sharp pullbacks as the Fed raised rates, Bank of America highlighted. However, the investment bank believes the scenario is different in the second half of 2024, with the Fed likely to begin cutting rates.
On Friday, Bank of America double-upgraded Mohawk Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MHK#NYSE">MHK</a>) from Underperform to Buy and raised their price target from $120 to $177, following better-than-expected Q2 2024 earnings.
<h3 class="wp-block-heading">Top-Performing Homebuilder Stocks In July 2024</h3>
The top ten best-performing stocks in the U.S. Home Construction ETF this month are:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Price Chg. % (MTD)</td>
</tr>
<tr>
<td>Mohawk Industries, Inc.</td>
<td>37.16%</td>
</tr>
<tr>
<td>M/l Homes, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MHO#NYSE">MHO</a>)</td>
<td>35.92%</td>
</tr>
<tr>
<td>Green Brick Partners, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRBK#NYSE">GRBK</a>)</td>
<td>31.50%</td>
</tr>
<tr>
<td>American Woodmark Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMWD#NASDAQ">AMWD</a>)</td>
<td>28.44%</td>
</tr>
<tr>
<td>Dream Finders Homes, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFH#NYSE">DFH</a>)</td>
<td>27.42%</td>
</tr>
<tr>
<td>JELD-WEN Holding, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JELD#NYSE">JELD</a>)</td>
<td>26.80%</td>
</tr>
<tr>
<td>Installed Building Products, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>)</td>
<td>26.65%</td>
</tr>
<tr>
<td>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>)</td>
<td>26.29%</td>
</tr>
<tr>
<td>Tri Pointe Homes, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPH#NYSE">TPH</a>)</td>
<td>26.26%</td>
</tr>
<tr>
<td>Century Communities, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCS#NYSE">CCS</a>)</td>
<td>26.05%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">As of July 26, 2024</figcaption></figure>
<h3 class="wp-block-heading">Latest Mortgage Rates, Housing Market Data</h3>
The Mortgage Bankers Association recently reported that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less dropped by 5 basis points to 6.62% for the week<a href="https://www.benzinga.com/news/large-cap/24/07/39931211/mortgage-rates-hit-lowest-point-since-february-as-investors-anticipate-fed-rate-cuts"> ending July 19, 2024.</a>
Despite the easing in borrowing costs, other housing market indicators remain bleak. 
Homebuilder confidence dipped to 42 in July, its lowest reading year-to-date, according to Bank of America.
 Jeffrey Roach, chief economist for LPL Financial, commented on the situation, stating, &#8220;The low supply of homes and high interest rates have depressed affordability to near-term lows.&#8221;
The National Association of Realtors reported a significant 5.4% decline in existing home sales for June, marking the worst monthly drop since 2022. 
Additionally, the U.S. Census Bureau revealed that new single-family home sales fell 0.6% month-over-month to a seasonally adjusted annual rate of 617,000 in June 2024, the lowest in seven months and below forecasts of 640,000, as high prices continued to affect affordability. 
The median sales price of existing homes rose 4.1% year-over-year, setting a new record high.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/07/39970069/investors-go-all-in-on-small-caps-pour-over-6-billion-into-russell-2000-etf-this-month-they-will">Investors Go All In On Small Caps, Pour Over $6 Billion Into Russell 2000 ETF This Month: They &#8216;Will Return To Larger-Cap Alternatives,&#8217; Veteran Analyst Says</a></li>
</ul>

Jefferies analyst Philip Ng maintains Installed Building Prods (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>) with a Hold and raises the price target from $239 to $250.

Jefferies Maintains Hold on Installed Building Prods, Raises Price Target to $250

Installed Building Prods's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>) short percent of float has risen 3.06% since its last report. The company recently reported that it has 1.40 million shares sold short, which is 7.07% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.4 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Installed Building Prods Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721232011_0_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Installed Building Prods has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Installed Building Prods's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Installed Building Prods's peer group average for short interest as a percentage of float is 5.52%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into Installed Building Prods's Recent Short Interest

LEN/B

Shares of building companies and homebuilders are trading higher after store sales of building material and garden supplies rose 1.4% in June.

Evercore ISI Group analyst Stephen Kim maintains Installed Building Prods (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>) with a Outperform and raises the price target from $274 to $282.

Evercore ISI Group Maintains Outperform on Installed Building Prods, Raises Price Target to $282

Shares of homebuilders, building companies and housing-related stocks are trading higher as Treasury yields drop following softer-than-expected June CPI figures.

In a report released today, Kenneth Zener from Seaport Global maintained a Buy rating on Installed Building Products (IBP – Research Report), with ...

Seaport Global Sticks to Its Buy Rating for Installed Building Products (IBP)

Analysts have been eager to weigh in on the Consumer Cyclical sector with new ratings on Installed Building Products (IBP – Research Report), Magna...

Analysts Offer Insights on Consumer Cyclical Companies: Installed Building Products (IBP), Magna International (MGA) and Marriott International (MAR)

Evercore ISI analyst Stephen Kim maintained a Buy rating on Installed Building Products (IBP – Research Report) today and set a price target of $27...

Installed Building Products (IBP) Receives a Buy from Evercore ISI

Installed Building Products, Inc. (IBP) Q2 2024 Earnings Call Transcript

Giverny Capital Asset Management Q2 2024 Letter

Installed Building Products: Downgrade To Hold As Valuation Has Priced In Near-Term Upside

Baron Small Cap Fund Q2 2024 Shareholder Letter

In a report released today, Reuben Garner from Benchmark Co. maintained a Buy rating on Installed Building Products (IBP – Research Report), with a...

Benchmark Co. Sticks to Its Buy Rating for Installed Building Products (IBP)

Installed Building Products goes ex-dividend tomorrow

Homebuilders are seeing an uptick, here are the best performing - JPM

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Press Releases

Installed Building Products Celebrates Five Years of Community Impact

Installed Building Products Successfully Closes New Term Loan B Facility

Installed Building Products to Report First Quarter 2024 Financial Results

Installed Building Products Reports First Quarter 2024 Results; Declares Regular Quarterly Cash Dividend

Installed Building Products Announces the Acquisition of Thrice Energy Solutions, LLC, Gutter Pro Enterprises, Inc., and a Share Repurchase Update

Installed Building Products Awarded With "National Preferred Partner" Distinction for Fourth Year in a Row

Installed Building Products to Report Second Quarter 2024 Financial Results

Installed Building Products Announces the Acquisition of Euroview Enterprises, LLC

Installed Building Products Reports Record Second Quarter 2024 Results; Declares Regular Quarterly Cash Dividend

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Installed Building Prods

Installed Building Prods (IBP) Forecast

Installed Building Prods (NYSE:IBP) Stock, Quote.Headers.trade-ideas