Simpson Manufacturing Company, Inc. (NYSE:SSD) Stock Now Rated "Hold" by Wall Street Brokerages

Key Points

• Analyst consensus is “Hold” for Simpson Manufacturing, with one sell, two hold and three buy ratings. The average 12-month price target is $216.25, above the stock’s reported $173.80 price.
• Simpson Manufacturing reported quarterly EPS of $3.09, beating estimates of $2.72, while revenue rose 6.3% year over year to $671.08 million. Analysts forecast full-year EPS of $9.14.
• The company declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 0.7% yield; meanwhile, CEO Michael Olosky sold 3,502 shares, and institutional investors own 93.68% of the stock.

Simpson Manufacturing Company, Inc. (NYSE:SSD - Get Free Report) has been assigned an average recommendation of "Hold" from the six brokerages that are covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $216.25.

A number of brokerages recently commented on SSD. Stephens upped their price target on shares of Simpson Manufacturing from $210.00 to $215.00 and gave the company a "cautious" rating in a research note on Tuesday, July 28th. Stifel Nicolaus increased their target price on Simpson Manufacturing from $217.00 to $218.00 and gave the stock a "buy" rating in a research report on Monday, August 3rd. Weiss Ratings upgraded Simpson Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 24th. Finally, UBS Group reiterated a "neutral" rating on shares of Simpson Manufacturing in a research note on Tuesday, July 28th.

Insider Buying and Selling

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

Hedge Funds Weigh In On Simpson Manufacturing

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SSD. QRG Capital Management Inc. grew its holdings in shares of Simpson Manufacturing by 6.7% during the second quarter. QRG Capital Management Inc. now owns 4,804 shares of the construction company's stock worth $1,006,000 after purchasing an additional 301 shares in the last quarter. State Street Corp lifted its stake in Simpson Manufacturing by 2.9% during the second quarter. State Street Corp now owns 1,308,394 shares of the construction company's stock worth $273,910,000 after purchasing an additional 37,206 shares during the last quarter. The Manufacturers Life Insurance Company lifted its position in Simpson Manufacturing by 2.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 203,524 shares of the construction company's stock worth $42,608,000 after buying an additional 3,981 shares during the last quarter. Sequoia Financial Advisors LLC boosted its stake in shares of Simpson Manufacturing by 10.7% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 1,319 shares of the construction company's stock valued at $276,000 after purchasing an additional 127 shares in the last quarter. Finally, Tidal Investments LLC boosted its position in Simpson Manufacturing by 112.9% during the second quarter. Tidal Investments LLC now owns 6,043 shares of the construction company's stock valued at $1,265,000 after buying an additional 3,204 shares during the period. 93.68% of the stock is currently owned by hedge funds and other institutional investors.

Simpson Manufacturing Trading Down 0.7%

Shares of SSD opened at $173.80 on Friday. The business has a 50-day moving average of $185.11 and a 200 day moving average of $185.32. 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 $7.15 billion, a P/E ratio of 18.99 and a beta of 1.31. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.14 and a current ratio of 3.29.

Simpson Manufacturing (NYSE:SSD - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The construction company reported $3.09 EPS for the quarter, beating the consensus estimate of $2.72 by $0.37. The business had revenue of $671.08 million for the quarter, compared to the consensus estimate of $658.76 million. Simpson Manufacturing had a net margin of 15.65% and a return on equity of 18.45%. The company's revenue was up 6.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.47 earnings per share. As a group, research analysts forecast that Simpson Manufacturing will post 9.14 EPS for the current year.

Simpson Manufacturing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 22nd. Stockholders of record on Thursday, October 1st will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, October 1st. Simpson Manufacturing's dividend payout ratio (DPR) is 13.11%.

About Simpson Manufacturing

Simpson Manufacturing Co, Inc develops, manufactures and sells engineered structural solutions for residential, commercial and industrial construction. Its products are designed to connect and reinforce wood, concrete and other building materials, supporting applications such as new construction, remodeling, seismic strengthening and infrastructure projects.

The company's product portfolio includes structural connectors, fasteners, anchors, adhesives, truss plates, reinforcing systems and related construction products.

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