Channing Capital Management Expands Stake in TopBuild Corp. by 28.1%

Channing Capital Management LLC has increased its holdings in TopBuild Corp. (NYSE: BLD) by 28.1% during the second quarter, as outlined in its latest 13F filing with the Securities and Exchange Commission (SEC). The firm now owns a total of 25,816 shares after acquiring an additional 5,657 shares, valuing its investment at approximately $8.36 million at the end of the quarter.

The investment landscape for TopBuild also saw activity from other institutional investors. For instance, SVB Wealth LLC established a new position in TopBuild during the first quarter, investing around $35,000. Similarly, Migdal Insurance & Financial Holdings Ltd. purchased a new stake valued at approximately $35,000 in the second quarter. MAI Capital Management raised its position by 28.3%, now holding 118 shares worth about $38,000. Mirae Asset Global Investments Co. Ltd. also entered the market with a new investment of roughly $63,000. Another notable firm, Blue Trust Inc., increased its holdings by 21.7%, now owning 224 shares valued at $73,000. Collectively, institutional investors and hedge funds own approximately 95.67% of TopBuild’s stock.

Insider Trading and Recent Performance

In related news, Luis Francisco Machado, the Vice President of TopBuild, sold 1,000 shares on November 26, 2023. The shares were sold at an average price of $450.40, amounting to a total transaction value of $450,400. Following this transaction, Machado retains ownership of 9,349 shares, which are valued at around $4.21 million. This sale represents a 9.66% reduction in his stake.

TopBuild recently released its quarterly earnings on November 4, 2023, reporting an earnings per share (EPS) of $5.36, surpassing analysts’ expectations of $5.22 by $0.14. The company generated revenue of $1.39 billion, slightly exceeding consensus estimates of $1.38 billion. TopBuild’s net margin stands at 10.84%, while its return on equity is reported at 27.10%. Compared to the same quarter last year, the company’s revenue increased by 1.4%, even though EPS declined from $5.68 in the previous year. Analysts project an EPS of $20.97 for TopBuild for the current fiscal year.

Analyst Ratings and Future Outlook

Several analysts have recently provided updated ratings on TopBuild’s stock. Seaport Research Partners upgraded its rating from “hold” to “strong buy” in a note issued on August 6, 2023. Meanwhile, the Royal Bank of Canada initiated coverage on November 20, 2023, assigning a “sector perform” rating with a price target of $410.00. Vertical Research initiated coverage with a “buy” rating and a price target of $517.96. Wells Fargo & Company also began coverage, setting an “overweight” rating with a target of $500.00. Overall, two analysts have rated TopBuild stock as a “strong buy,” eight have issued a “buy” rating, and six have provided a “hold” rating. According to MarketBeat.com, TopBuild maintains a consensus rating of “moderate buy” and a target price of $430.00.

TopBuild Corp. specializes in the installation and distribution of insulation and other building materials, operating in two primary segments: Installation and Specialty Distribution. Its product offerings include insulation products, glass, windows, rain gutters, and other construction-related items. As the company continues to navigate the dynamic construction market, its recent performance and investor interest suggest a robust outlook for the future.