Installed Building Products Inc. (NYSE:IBP) shares fell to a low of $69.73 before closing at $70.48. Intraday shares traded counted 0.22 million, which was 18.79% higher than its 30-day average trading volume of 270.29K. IBP’s previous close was $72.87 while the outstanding shares total 29.72M. The firm has a beta of 1.80, a 12-month trailing P/E ratio of 27.98, and a growth ratio of 0.77. The stock’s Relative Strength Index (RSI) is 54.94, with weekly volatility at 4.84% and ATR at 3.74. The IBP stock’s 52-week price range has touched low of $29.02 and a $80.25 high. The stock traded lower over the last trading session, losing -3.28% on 07/09/20.
Investors have identified the Building Products & Equipment company Installed Building Products Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.06 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Installed Building Products Inc. (IBP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For IBP, the company has in raw cash 187.19 million on their books with 40.13 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 569736000 million total, with 201565000 million as their total liabilities.
IBP were able to record 25.99 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 9.3 million. In cash movements, the company had a total of 35.91 million as operating cash flow.
Potential earnings growth for Installed Building Products Inc. (IBP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Installed Building Products Inc. recorded a total of 397.33 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 13.89% coming in sequential stages and their sales for the third quarter reducing by -0.98%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 281.07 million trying to sell their products during the last quarter, with the result yielding a gross income of 116.26 million. This allows shareholders to hold on to 29.72M with the revenue now reading 0.54 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.62 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.29 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on IBP sounds very interesting.
Is the stock of IBP attractive?
In related news, Director, THOMAS MICHAEL H bought 1,000 shares of the company’s stock in a transaction that recorded on Mar 13. The purchase was performed at an average price of 41.65, for a total value of 41,654. As the purchase deal closes, the Director, THOMAS MICHAEL H now bought 2,500 shares of the company’s stock, valued at 106,286. Also, Director, Verma Vikas bought 20,000 shares of the company’s stock in a deal that was recorded on Mar 12. The shares were cost at an average price of 43.29 per share, with a total market value of 865,785. Following this completion of disposal, the Director, Hilsheimer Lawrence A. now holds 1,100 shares of the company’s stock, valued at 47,965. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.40%.
7 out of 12 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Installed Building Products Inc.. 0 analysts has assigned a Sell rating on the IBP stock. The 12-month mean consensus price target for the company’s shares has been set at $73.55.