TopBuild Corp. (BLD): Insights At A Glance

Capital Research & Management Co has recently announced that it has increased stake in TopBuild Corp. (NYSE:BLD) by 5.32%. After grabbing 2.49 million shares, the institutional investor is now in possession of 0.13 million shares of the Industrials Company. The new investment brought the stake of investor firm to 7.79% having worth around $383.85 million. Moreover, ValueAct Capital Management LP increased its share by 0.34 million to have a control over 1.55 million shares. And Capital Research & Management Co raised its holdings to 0.15 million shares by acquiring 1.08 million shares or 3.37% of the stake.

TopBuild Corp. (BLD) concluded trading on 01/11/23 at a closing price of $179.31, with 0.38 million shares of worth about $68.02 million changed hands on the day. Half year performance of the stock remained positive as price took a surge of 0.48% during that period and on Wednesday the price saw a gain of about 6.62%. Currently the company’s common shares owned by public are about 32.08M shares, out of which, 31.81M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 9 analysts are covering the BLD stock and their offered price forecasts bring an average price target of $199.00. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $227.00 and could fall to a lowest price of $167.00. The stock’s current price level is 8.98% above of average price target set by the analysts, while a rise to estimated low would result in loss of -7.37% for the stock. However, touching the estimated high of $227.00 would mean a gain of 21.01% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 35 times over the past 12 months. They bought 71,982 shares in 32 of the transactions. In 3 selling transactions, insiders dumped 7,490 shares.

Findlay Park Funds Plc – American, American Funds AMCAP Fund, and American Funds Small Cap World Fu are the top 3 mutual funds which are holding stakes in TopBuild Corp. Findlay Park Funds Plc – American is currently holding 2.65 million shares of worth totaling $408.21 million. The company recently came buying 0.19 million shares which brought its stake up to 8.29% of the company’s outstanding shares. American Funds Small Cap World Fu, after buying 2.12 million shares, have now control over 6.63% of the stake in the company. It holds 0.23 million shares of worth $326.67 million.

TopBuild Corp. (NYSE: BLD) started trading at $173.14, above $4.96 from concluding price of the previous day. However, the stock later moved at a day high price of 180.53, or with a gain of 6.62%. Stock saw a price change of 10.88% in past 5 days and over the past one month there was a price change of 13.42%. Year-to-date (YTD), BLD shares are showing a performance of 14.58% which decreased to -24.90% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $140.66 but also hit the highest price of $251.56 during that period. The average intraday trading volume for TopBuild Corp. shares is 336.59K. The stock is currently trading 11.89% above its 20-day simple moving average (SMA20), while that difference is up 15.12% for SMA50 and it goes to 2.06% higher than SMA200.

Capital Research & Management Co acquired 2.49 million shares of TopBuild Corp. having value of about $383.85 million. Data submitted at the U.S SEC by Capital Research & Management Co revealed that the firm now holds 0.13 million shares in the company valued at close to $22546080.78, or have control over 5.32% stake in the company. TopBuild Corp. (NYSE: BLD) currently have 32.08M outstanding shares and institutions hold larger chunk of about 98.60% of that. Holding of mutual funds in the company is about 30.97% while other institutional holders and individual stake holders have control over 67.66% and 1.29% of the stake respectively.

The stock has a current market capitalization of $5.58B and its 3Y-monthly beta is at 1.45. PE ratio of stock for trailing 12 months is 11.95, while it has posted earnings per share of $15.01 in the same period. Its PEG reads 1.14 and has Quick Ratio of 1.30 while making debt-to-equity ratio of 0.80. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for BLD, volatility over the week remained 2.82% while standing at 2.93% over the month.

Analysts are in expectations that TopBuild Corp. (BLD) stock would likely to be making an EPS of $4.07 in the current quarter, while forecast for next quarter EPS is $3.77 and it is $15.61 for next year. For the current quarter EPS, analysts have given the company a lowest target $3.82 which is $4.4 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $2.95 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 31.80% while it is estimated to decrease by -11.82% in next year. EPS is likely to shrink at an annualized rate of 10.50% for next 5-years, compared to annual growth of 38.50% made by the stock over the past 5-years.

Analysts at 9 brokerage firms have issued recommendations for the TopBuild Corp. (BLD)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.40. Out of those 9 Wall Street analysts, 5 recommended a “Buy” rating, while 4 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Deutsche Bank on January 11, 2023 offering a Buy rating for the stock and assigned a target price range of between $201 and $227 to it. Coverage by KeyBanc Capital Markets stated TopBuild Corp. (BLD) stock as an Overweight in their note to investors on September 19, 2022, suggesting a price target of $205 for the stock. On August 19, 2022, Loop Capital Initiated their recommendations, while on August 18, 2022, Deutsche Bank Initiated their ratings for the stock with a price target of $236. Stock get an Outperform rating from Credit Suisse on April 05, 2022.