COLUMBUS, Ohio - Installed Building Products, Inc. (NYSE: NYSE:IBP), a leading installer of insulation and complementary building products, announced today the acquisition of Thrice Energy Solutions, LLC and Gutter Pro Enterprises, Inc., adding approximately $14 million in annual revenue.
Thrice, based in Oklahoma City, Oklahoma, expands IBP's reach into new residential and commercial markets in Oklahoma and Texas. Gutter Pro, located in Plymouth, Massachusetts, enhances IBP's presence in the Northeast, serving both residential and commercial sectors in Massachusetts and Rhode Island.
The acquisitions, completed on June 3 for Gutter Pro and recently for Thrice, are part of IBP's growth strategy to diversify its product offerings and expand geographically. Jeff Edwards, Chairman and CEO of IBP, welcomed the new additions to the company, highlighting the strategic importance of these acquisitions in strengthening IBP's market position.
Moreover, IBP repurchased approximately 215 thousand shares of its common stock in June, totaling $46 million, under its existing stock repurchase program. As of today, the company has over $250 million available for further repurchases.
IBP is a major national installer of residential insulation and various building products, providing services to residential and commercial builders across 48 continental states and the District of Columbia. The company manages the installation process from material purchase to supply and installation.
This news is based on a press release statement and reflects the company's current operations and market activities. The forward-looking statements in the press release involve risks and uncertainties and are not guarantees of future performance. The stock repurchase program may be modified, discontinued, or suspended at any time based on a variety of factors.
In other recent news, Installed Building Products has reported substantial growth in its first quarter of 2024. The company's consolidated net revenue increased by 5% to $693 million, and its adjusted EBITDA rose by 12% to $117 million. This was driven by a strong performance in both single-family and multifamily end markets. Goldman Sachs reaffirmed a Conviction Buy rating on the company's stock, predicting sustained above-average growth and strong gross margins. The firm also maintained its price target of $300.00.
Meanwhile, Benchmark analysts raised their price target on Installed Building Products shares to $270 from $250, following the company's robust first-quarter results. Despite a slight reduction in the company's earnings per share estimates due to increased interest expenses, the EBITDA estimate has been revised upwards.
These recent developments reflect a positive outlook for Installed Building Products, with analysts from Goldman Sachs and Benchmark expressing confidence in the company's continued growth and profitability. The company's strategic initiatives are expected to drive this growth, with potential for the gross margins to surpass the long-term goal of 30-32%.
InvestingPro Insights
As Installed Building Products (NYSE: IBP) continues to execute its growth strategy through strategic acquisitions and share repurchases, investors and stakeholders may find the following metrics and tips from InvestingPro valuable for assessing the company's financial health and market position.
InvestingPro Data indicates that IBP has a market capitalization of $6.06 billion, reflecting the size and scale of the company in the insulation and building products industry. The company's Price to Earnings (P/E) ratio stands at 24.02, suggesting that investors are willing to pay a premium for its earnings potential. Moreover, IBP's Price to Book (P/B) ratio as of the last twelve months ending Q1 2024 is 8.93, which is considered high and might indicate that the stock is valued richly in terms of its net asset value.
One of the notable InvestingPro Tips is that IBP has managed to raise its dividend for four consecutive years, demonstrating a commitment to returning value to shareholders. This could be an attractive point for income-focused investors. Additionally, the company has been flagged for its high return over the last year, with a 71.76% one-year price total return, showcasing strong recent performance in the market.
Investors interested in a deeper analysis of Installed Building Products can find additional InvestingPro Tips on https://www.investing.com/pro/IBP. There are a total of 11 additional tips available, offering insights that could help in making informed investment decisions. For those looking to access these valuable tips, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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