Simpson Manufacturing (NYSE:SSD) Stock Price Target Cut by DA Davidson

Key Points

• DA Davidson cut Simpson Manufacturing’s price target from $212 to $203 while maintaining a “neutral” rating, implying 6.26% potential upside from the previous close.
• Simpson exceeded quarterly expectations, reporting $2.68 EPS versus the $2.44 consensus and revenue of $638.13 million versus $624.39 million expected.
• The company authorized a $1 billion share-buyback plan, allowing repurchases of up to 13.2% of outstanding shares; analysts’ average rating remains “Hold” with a $207 price target.

Simpson Manufacturing (NYSE:SSD - Get Free Report) had its target price decreased by investment analysts at DA Davidson from $212.00 to $203.00 in a research note issued on Tuesday, Benzinga reports. The firm presently has a "neutral" rating on the construction company's stock. DA Davidson's price objective suggests a potential upside of 6.26% from the stock's previous close.

Other equities analysts also recently issued research reports about the company. Robert W. Baird upped their target price on Simpson Manufacturing from $205.00 to $210.00 and gave the company an "outperform" rating in a report on Tuesday. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Simpson Manufacturing in a research report on Thursday. UBS Group reiterated a "neutral" rating on shares of Simpson Manufacturing in a research note on Tuesday, July 28th. Stephens reiterated a "cautious" rating and issued a $205.00 target price on shares of Simpson Manufacturing in a research report on Tuesday. Finally, Stifel Nicolaus cut their target price on shares of Simpson Manufacturing from $218.00 to $210.00 and set a "buy" rating for the company in a research report on Monday. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $207.00.

Simpson Manufacturing Price Performance

Shares of NYSE SSD traded up $9.04 during mid-day trading on Tuesday, reaching $191.03. 134,047 shares of the company traded hands, compared to its average volume of 292,161. Simpson Manufacturing has a fifty-two week low of $156.32 and a fifty-two week high of $213.49. The firm has a market cap of $7.86 billion, a PE ratio of 20.89 and a beta of 1.32. The stock has a fifty day simple moving average of $177.96 and a 200-day simple moving average of $185.08. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.29 and a quick ratio of 2.14.

Simpson Manufacturing (NYSE:SSD - Get Free Report) last announced its quarterly earnings data on Monday, October 26th. The construction company reported $2.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.44 by $0.24. The company had revenue of $638.13 million for the quarter, compared to analysts' expectations of $624.39 million. Simpson Manufacturing had a net margin of 15.65% and a return on equity of 18.45%. The business's revenue was up 2.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.58 EPS. Equities research analysts anticipate that Simpson Manufacturing will post 9.28 EPS for the current fiscal year.

Simpson Manufacturing announced that its Board of Directors has approved a stock buyback plan on Monday, October 26th that permits the company to repurchase $1 billion in outstanding shares. This repurchase authorization permits the construction company to buy up to 13.2% of its stock through open market purchases. Share repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, CEO Michael Olosky sold 3,502 shares of the stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $172.84, for a total value of $605,285.68. Following the transaction, the chief executive officer owned 51,398 shares in the company, valued at approximately $8,883,630.32. This represents a 6.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of SSD. Peterson Wealth Services increased its position in Simpson Manufacturing by 9.1% during the third quarter. Peterson Wealth Services now owns 5,794 shares of the construction company's stock worth $990,000 after buying an additional 481 shares during the last quarter. Provident Investment Management Inc. acquired a new stake in shares of Simpson Manufacturing in the third quarter worth about $222,000. Signaturefd LLC lifted its holdings in Simpson Manufacturing by 59.6% in the 3rd quarter. Signaturefd LLC now owns 983 shares of the construction company's stock worth $168,000 after purchasing an additional 367 shares during the last quarter. Fifth Third Wealth Advisors LLC lifted its holdings in Simpson Manufacturing by 11.0% in the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 3,027 shares of the construction company's stock worth $517,000 after purchasing an additional 299 shares during the last quarter. Finally, Root Financial Partners LLC acquired a new stake in Simpson Manufacturing in the 3rd quarter worth approximately $168,000. Institutional investors and hedge funds own 93.68% of the company's stock.

Key Simpson Manufacturing News

Here are the key news stories impacting Simpson Manufacturing this week:

• Positive Sentiment: Q3 earnings and revenue beat estimates: Simpson reported adjusted earnings of $2.68 per share, above the $2.44 consensus estimate, while revenue rose 2.3% year over year to $638.1 million, exceeding expectations of $624.4 million. Net income increased 1.6% to $109.1 million, and diluted EPS rose 3.9% from $2.58 a year earlier. Simpson Manufacturing third-quarter financial results
• Positive Sentiment: Large buyback supports the stock: The board authorized up to $1.0 billion in share repurchases, representing as much as 13.2% of outstanding shares. Simpson also repurchased $66.3 million of stock during the quarter. The authorization signals management’s confidence in the company’s valuation and could support future EPS growth. Simpson Manufacturing share repurchase authorization
• Positive Sentiment: Analyst raises price target: Robert W. Baird increased its target from $205 to $210 and maintained an “outperform” rating, implying roughly 10% upside from the cited reference price. Robert W. Baird stock recommendations
• Positive Sentiment: Shareholder returns remain favorable: Simpson declared a quarterly dividend of $0.30 per share and maintained a strong balance sheet, with $491.3 million in cash versus $308.0 million of debt.
• Neutral Sentiment: Guidance reflects steady but moderate growth: The company forecast a 2026 consolidated operating margin of 20.0% to 20.5%, including an expected $11 million gain from vacant-land sales. Pricing actions and cost controls are helping protect margins in an uncertain construction market.
• Negative Sentiment: International weakness remains a risk: North American sales rose 3.8% to $502.0 million, but European sales declined 3.4% to $129.9 million. The relatively modest overall revenue growth suggests demand remains uneven.

About Simpson Manufacturing

Simpson Manufacturing Co, Inc develops, manufactures and sells structural solutions for residential, commercial and industrial construction. Its products are designed to connect and reinforce wood, concrete and other building materials, supporting applications ranging from new construction to repair, remodeling and retrofit projects.

The company is best known for its Simpson Strong-Tie brand, which offers structural connectors, fasteners, anchors, specialty products, adhesives and related installation systems.

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