Stock Buyback Plan Approved by Simpson Manufacturing (NYSE:SSD) Board of Directors

Key Points

• Simpson Manufacturing approved a $1 billion stock buyback plan, authorizing repurchases of up to 13.2% of outstanding shares through open-market purchases.
• The company reported quarterly EPS of $2.68 and revenue of $638.13 million, exceeding analyst expectations of $2.45 EPS and $625.39 million in revenue; revenue increased 2.3% year over year.
• Simpson declared a quarterly dividend of $0.30 per share, equivalent to a $1.20 annualized dividend and a 0.7% yield, while analysts maintained a consensus “Hold” rating with a $214.25 target price.

Simpson Manufacturing (NYSE:SSD - Get Free Report) announced that its Board of Directors has initiated a stock repurchase plan on Monday, October 26th, RTT News reports. The company plans to buy back $1 billion in outstanding shares. This buyback authorization authorizes the construction company to repurchase up to 13.2% of its stock through open market purchases. Share buyback plans are often a sign that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on SSD. Weiss Ratings reiterated a "buy (b-)" rating on shares of Simpson Manufacturing in a report on Thursday. Stifel Nicolaus reduced their price target on Simpson Manufacturing from $218.00 to $210.00 and set a "buy" rating for the company in a research report on Monday. Stephens upped their price objective on Simpson Manufacturing from $210.00 to $215.00 and gave the stock a "cautious" rating in a research note on Tuesday, July 28th. Finally, UBS Group reaffirmed a "neutral" rating on shares of Simpson Manufacturing in a research report on Tuesday, July 28th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $214.25.

Simpson Manufacturing Stock Down 1.1%

Shares of Simpson Manufacturing stock traded down $1.95 on Monday, reaching $182.41. The stock had a trading volume of 620,008 shares, compared to its average volume of 311,833. The company has a quick ratio of 2.14, a current ratio of 3.29 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $7.50 billion, a P/E ratio of 19.94 and a beta of 1.32. The company has a 50 day moving average price of $177.96 and a 200 day moving average price of $185.08. Simpson Manufacturing has a 1 year low of $156.32 and a 1 year high of $213.49.

Simpson Manufacturing (NYSE:SSD - Get Free Report) last posted its earnings results on Monday, October 26th. The construction company reported $2.68 EPS for the quarter, beating analysts' consensus estimates of $2.45 by $0.23. Simpson Manufacturing had a net margin of 15.65% and a return on equity of 18.45%. The company had revenue of $638.13 million during the quarter, compared to analysts' expectations of $625.39 million. During the same quarter in the prior year, the company posted $2.58 earnings per share. Simpson Manufacturing's revenue for the quarter was up 2.3% compared to the same quarter last year. As a group, equities research analysts forecast that Simpson Manufacturing will post 9.28 EPS for the current year.

Simpson Manufacturing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 28th. Shareholders of record on Thursday, January 7th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, January 7th. Simpson Manufacturing's payout ratio is currently 13.11%.

Insider Activity

In other news, CEO Michael Olosky sold 3,502 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $172.84, for a total transaction of $605,285.68. Following the completion of the sale, 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 position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.34% of the company's stock.

Key Headlines Impacting Simpson Manufacturing

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

• Positive Sentiment: Quarterly results exceeded expectations: Simpson reported diluted EPS of $2.68, up 3.9% year over year and above consensus estimates near $2.45–$2.47. Revenue rose 2.3% to $638.1 million, topping expectations of approximately $625 million. Simpson Manufacturing 2026 Third Quarter Financial Results
• Positive Sentiment: $1 billion share repurchase authorization: The board approved a new authorization effective October 22, following $66.3 million of stock repurchases during the quarter. The program could support per-share earnings and signal confidence in the company’s valuation. Simpson Manufacturing New Share Repurchase Authorization
• Positive Sentiment: North American demand remained healthy: Sales in North America increased 3.8% to $502.0 million. The company also declared a quarterly dividend of $0.30 per share. Simpson Manufacturing Q3 Revenue Update

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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