Bank of America Corp DE Makes New Investment in Simpson Manufacturing Company, Inc. $SSD

Key Points

• Bank of America initiated a sizable position in Simpson Manufacturing during the second quarter, purchasing 264,071 shares valued at approximately $55.3 million, or 0.64% of the company.
• Institutional ownership remains high at 93.68%, with several other funds also establishing new positions. Simpson reported quarterly EPS of $3.09, exceeding estimates, while revenue rose 6.3% year over year to $671.1 million.
• Simpson declared a quarterly dividend of $0.30 per share, equivalent to an annualized $1.20 and a 0.7% yield. Analysts maintain a consensus “Hold” rating with an average price target of $216.25, above the reported share price of $171.38.

Bank of America Corp DE acquired a new position in Simpson Manufacturing Company, Inc. (NYSE:SSD - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The firm acquired 264,071 shares of the construction company's stock, valued at approximately $55,283,000. Bank of America Corp DE owned 0.64% of Simpson Manufacturing at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also modified their holdings of SSD. Port Capital LLC acquired a new position in Simpson Manufacturing during the second quarter valued at approximately $82,563,000. Caisse de depot et placement du Quebec purchased a new position in shares of Simpson Manufacturing in the 2nd quarter valued at $482,000. Man Group plc purchased a new position in shares of Simpson Manufacturing in the 2nd quarter valued at $5,350,000. Polar Asset Management Partners Inc. purchased a new position in shares of Simpson Manufacturing in the 2nd quarter valued at $5,255,000. Finally, Jupiter Topco LLC acquired a new position in shares of Simpson Manufacturing during the 2nd quarter valued at $3,832,000. 93.68% of the stock is owned by institutional investors and hedge funds.

Simpson Manufacturing Stock Performance

Shares of SSD opened at $171.38 on Monday. The stock has a market capitalization of $7.05 billion, a PE ratio of 18.73 and a beta of 1.31. Simpson Manufacturing Company, Inc. has a 12-month low of $156.32 and a 12-month high of $213.49. The business's fifty day moving average price is $186.28 and its 200 day moving average price is $185.72. 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 results on Monday, July 27th. The construction company reported $3.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.72 by $0.37. Simpson Manufacturing had a net margin of 15.65% and a return on equity of 18.45%. The company had revenue of $671.08 million during the quarter, compared to the consensus estimate of $658.76 million. During the same quarter in the previous year, the company posted $2.47 earnings per share. The company's revenue for the quarter was up 6.3% compared to the same quarter last year. Equities research analysts forecast that Simpson Manufacturing Company, Inc. will post 9.14 EPS for the current year.

Simpson Manufacturing Dividend Announcement

The business 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 dividend of $0.30 per share. 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 is 13.11%.

Insider Buying and Selling at Simpson Manufacturing

In other news, CEO Michael Olosky sold 3,502 shares of the business'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 in the company, valued at $8,883,630.32. The trade was a 6.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.34% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Stifel Nicolaus upped 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. Stephens raised their target price on Simpson Manufacturing from $210.00 to $215.00 and gave the company a "cautious" rating in a report on Tuesday, July 28th. UBS Group reissued a "neutral" rating on shares of Simpson Manufacturing in a research report on Tuesday, July 28th. Finally, Weiss Ratings upgraded Simpson Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, July 24th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $216.25.

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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