TopBuild (NYSE:BLD) Shares Gap Down – Should You Sell?

TopBuild Corp. (NYSE:BLD)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $425.52, but opened at $390.37. TopBuild shares last traded at $363.9270, with a volume of 120,761 shares trading hands.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Zacks Research raised TopBuild from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 6th. Wells Fargo & Company lowered their price target on TopBuild from $525.00 to $475.00 and set an “overweight” rating for the company in a research report on Wednesday, April 8th. Loop Capital lowered shares of TopBuild from a “buy” rating to a “hold” rating and set a $485.00 price objective for the company. in a research note on Wednesday, May 6th. Seaport Research Partners reiterated a “neutral” rating on shares of TopBuild in a research report on Tuesday, April 7th. Finally, UBS Group set a $440.00 target price on shares of TopBuild in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, TopBuild currently has a consensus rating of “Hold” and a consensus price target of $460.00.

TopBuild Price Performance

The company has a debt-to-equity ratio of 1.16, a quick ratio of 1.41 and a current ratio of 2.00. The firm has a market capitalization of $9.93 billion, a P/E ratio of 19.91, a P/E/G ratio of 4.87 and a beta of 1.80. The stock’s 50 day simple moving average is $419.06 and its 200 day simple moving average is $430.30.

TopBuild (NYSE:BLD) last posted its quarterly earnings results on Tuesday, May 5th. The construction company reported $3.75 earnings per share for the quarter, beating the consensus estimate of $3.64 by $0.11. TopBuild had a net margin of 8.95% and a return on equity of 23.53%. The firm had revenue of $1.45 billion during the quarter, compared to the consensus estimate of $1.41 billion. During the same quarter in the previous year, the firm posted $4.63 earnings per share. The company’s revenue was up 17.2% on a year-over-year basis. As a group, analysts expect that TopBuild Corp. will post 18.07 earnings per share for the current fiscal year.

Institutional Investors Weigh In On TopBuild

Hedge funds have recently made changes to their positions in the company. Core Wealth Advisors LLC bought a new position in shares of TopBuild during the 4th quarter worth $26,000. Advisory Services Network LLC bought a new stake in shares of TopBuild in the third quarter valued at about $27,000. Parallel Advisors LLC raised its holdings in shares of TopBuild by 50.0% in the fourth quarter. Parallel Advisors LLC now owns 75 shares of the construction company’s stock valued at $31,000 after acquiring an additional 25 shares in the last quarter. Global Retirement Partners LLC lifted its stake in TopBuild by 310.5% in the fourth quarter. Global Retirement Partners LLC now owns 78 shares of the construction company’s stock worth $33,000 after acquiring an additional 59 shares during the period. Finally, First Horizon Corp lifted its stake in TopBuild by 138.9% in the fourth quarter. First Horizon Corp now owns 86 shares of the construction company’s stock worth $36,000 after acquiring an additional 50 shares during the period. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

About TopBuild

TopBuild Corp. (NYSE: BLD) is a leading installer and distributor of insulation and building material products serving primarily the U.S. construction market. Headquartered in Daytona Beach, Florida, the company was formed in 2011 as a spin-off from ABF Freight System and has since grown through a combination of organic expansion and targeted acquisitions. TopBuild’s core mission is to enhance energy efficiency and comfort in new residential and light commercial construction projects by providing comprehensive insulation solutions and related services.

The company operates through two main segments.