Capital World Investors Boosts Holdings in Simpson Manufacturing Company, Inc. $SSD

Key Points

• Capital World Investors more than doubled its stake in Simpson Manufacturing in Q3 — up 101.7% after buying 87,135 shares to hold 172,813 shares (about $28.94M); institutional investors now own 93.68% of the company.
• Simpson beat quarterly expectations with $1.35 EPS vs. $1.26 estimated and revenue of $539.35M (+4.2% YoY); the stock trades at a market cap of $7.37B and a P/E of 21.59.
• The company declared a quarterly dividend of $0.29 per share (annualized $1.16, yield 0.7%, ex-dividend Apr 2, paid Apr 23), while analyst coverage is mixed with a consensus rating of Hold and a $207.33 target price.

Capital World Investors raised its position in Simpson Manufacturing Company, Inc. (NYSE:SSD - Free Report) by 101.7% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 172,813 shares of the construction company's stock after purchasing an additional 87,135 shares during the period. Capital World Investors owned 0.42% of Simpson Manufacturing worth $28,939,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Swiss National Bank raised its position in shares of Simpson Manufacturing by 1.1% in the third quarter. Swiss National Bank now owns 81,100 shares of the construction company's stock worth $13,581,000 after buying an additional 900 shares in the last quarter. Russell Investments Group Ltd. grew its position in Simpson Manufacturing by 14.2% during the third quarter. Russell Investments Group Ltd. now owns 27,031 shares of the construction company's stock worth $4,527,000 after buying an additional 3,358 shares in the last quarter. Natixis Advisors LLC increased its stake in Simpson Manufacturing by 10.7% in the 3rd quarter. Natixis Advisors LLC now owns 24,558 shares of the construction company's stock worth $4,112,000 after acquiring an additional 2,367 shares during the last quarter. Blair William & Co. IL purchased a new stake in shares of Simpson Manufacturing in the 3rd quarter valued at about $202,000. Finally, First Trust Advisors LP raised its holdings in shares of Simpson Manufacturing by 5.2% in the 3rd quarter. First Trust Advisors LP now owns 541,149 shares of the construction company's stock valued at $90,621,000 after acquiring an additional 26,743 shares in the last quarter. Institutional investors own 93.68% of the company's stock.

Simpson Manufacturing Stock Performance

Shares of NYSE SSD opened at $178.10 on Friday. The stock's 50-day moving average is $187.96 and its 200 day moving average is $178.71. The stock has a market cap of $7.37 billion, a price-to-earnings ratio of 21.59 and a beta of 1.35. Simpson Manufacturing Company, Inc. has a 1-year low of $137.35 and a 1-year high of $211.98. The company has a current ratio of 3.54, a quick ratio of 1.99 and a debt-to-equity ratio of 0.18.

Simpson Manufacturing (NYSE:SSD - Get Free Report) last issued its earnings results on Monday, February 9th. The construction company reported $1.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.26 by $0.09. The business had revenue of $539.35 million during the quarter, compared to analyst estimates of $530.70 million. Simpson Manufacturing had a return on equity of 17.63% and a net margin of 14.79%.Simpson Manufacturing's revenue for the quarter was up 4.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.31 earnings per share. On average, sell-side analysts anticipate that Simpson Manufacturing Company, Inc. will post 8.29 EPS for the current fiscal year.

Simpson Manufacturing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 23rd. Investors of record on Thursday, April 2nd will be issued a dividend of $0.29 per share. The ex-dividend date of this dividend is Thursday, April 2nd. This represents a $1.16 annualized dividend and a dividend yield of 0.7%. Simpson Manufacturing's dividend payout ratio (DPR) is currently 14.06%.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Stephens set a $200.00 price objective on Simpson Manufacturing in a report on Tuesday, February 10th. Wall Street Zen lowered shares of Simpson Manufacturing from a "buy" rating to a "hold" rating in a research report on Sunday, March 8th. Robert W. Baird set a $222.00 price target on shares of Simpson Manufacturing in a research note on Tuesday, February 10th. Weiss Ratings cut shares of Simpson Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 2nd. Finally, DA Davidson lifted their price objective on shares of Simpson Manufacturing from $190.00 to $200.00 and gave the stock a "neutral" rating in a report on Wednesday, February 11th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $207.33.

Simpson Manufacturing Profile

Simpson Manufacturing Co, Inc, through its Simpson Strong-Tie® brand, is a leading global supplier of structural building products. The company specializes in the design, testing, manufacture and supply of connectors, anchors, fasteners and lateral systems that enhance the safety and performance of wood, concrete and masonry structures. Its product portfolio also includes repair and strengthening systems, concrete reinforcement and high-performance adhesives used in residential, commercial and industrial construction projects.

Founded in 1956 by Barclay Simpson in Oakland, California, Simpson Manufacturing has grown from a single product business into a diversified manufacturer with worldwide operations.

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