Simpson Manufacturing Company, Inc. (NYSE:SSD) Stock Has Average Target Price of $207.00 According to Analysts

Key Points

• Analysts rate Simpson Manufacturing “Hold” overall: Six brokerages cover the stock, with three buys, two holds and one sell; their average 12-month price target is $207.
• The company beat quarterly estimates, reporting EPS of $2.68 versus $2.44 expected and revenue of $638.1 million versus $624.4 million expected; revenue rose 2.3% year over year.
• Simpson approved a $1 billion share-repurchase program, allowing it to buy back up to 13.2% of shares, and announced a quarterly dividend of $0.30 per share.

Simpson Manufacturing Company, Inc. (NYSE:SSD - Get Free Report) has been assigned a consensus rating of "Hold" from the six brokerages that are currently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $207.00.

A number of equities research analysts have recently weighed in on SSD shares. DA Davidson dropped their target price on Simpson Manufacturing from $212.00 to $203.00 and set a "neutral" rating for the company in a report on Tuesday, October 27th. Stephens lowered their price target on shares of Simpson Manufacturing from $215.00 to $205.00 and set a "cautious" rating on the stock in a research report on Tuesday, October 27th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Simpson Manufacturing in a research report on Thursday, October 22nd. Stifel Nicolaus dropped their price objective on shares of Simpson Manufacturing from $218.00 to $210.00 and set a "buy" rating for the company in a research note on Monday, October 26th. Finally, Robert W. Baird lifted their price objective on shares of Simpson Manufacturing from $205.00 to $210.00 and gave the stock an "outperform" rating in a research note on Tuesday, October 27th.

Insider Activity at Simpson Manufacturing

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

Hedge Funds Weigh In On Simpson Manufacturing

A number of hedge funds have recently added to or reduced their stakes in the stock. Caitlin John LLC acquired a new position in Simpson Manufacturing in the 2nd quarter valued at $27,000. Putney Financial Group LLC acquired a new stake in shares of Simpson Manufacturing during the 3rd quarter worth $31,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in shares of Simpson Manufacturing during the 1st quarter worth $37,000. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Simpson Manufacturing during the 2nd quarter worth $61,000. Finally, Fiduciary Financial Advisors bought a new position in shares of Simpson Manufacturing in the second quarter worth $76,000. Institutional investors own 93.68% of the company's stock.

Simpson Manufacturing Stock Performance

Shares of NYSE SSD traded down $1.11 during trading hours on Friday, reaching $197.66. 240,787 shares of the stock were exchanged, compared to its average volume of 361,255. The firm has a market capitalization of $8.01 billion, a price-to-earnings ratio of 21.37 and a beta of 1.35. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.20 and a current ratio of 3.37. Simpson Manufacturing has a 52 week low of $156.32 and a 52 week high of $213.49. The stock's fifty day simple moving average is $181.61 and its 200 day simple moving average is $186.25.

Simpson Manufacturing (NYSE:SSD - Get Free Report) last released its quarterly earnings results on Monday, October 26th. The construction company reported $2.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.44 by $0.24. Simpson Manufacturing had a return on equity of 18.23% and a net margin of 15.62%. The business had revenue of $638.13 million during the quarter, compared to the consensus estimate of $624.39 million. During the same period in the previous year, the company posted $2.58 EPS. The firm's quarterly revenue was up 2.3% on a year-over-year basis. Sell-side analysts predict that Simpson Manufacturing will post 9.34 EPS for the current year.

Simpson Manufacturing declared that its Board of Directors has approved a stock buyback program on Monday, October 26th that allows the company to buy back $1 billion in shares. This buyback authorization allows the construction company to repurchase up to 13.2% of its shares through open market purchases. Share buyback programs are often a sign that the company's board believes its shares are undervalued.

Simpson Manufacturing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 28th. Shareholders of record on Thursday, January 7th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Thursday, January 7th. Simpson Manufacturing's dividend payout ratio is presently 12.97%.

Simpson Manufacturing Company Profile

Simpson Manufacturing Co., Inc. designs, manufactures and sells structural building products and construction solutions, primarily through its Simpson Strong-Tie brand. Its products are used in residential, commercial and industrial construction, as well as in repair and retrofit projects. The company's offerings include connectors and fasteners, anchors and adhesives, engineered lateral-force-resisting systems, and prefabricated building components. It also provides construction-related software and services to support the design and installation of its products.

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