Simpson Manufacturing Company, Inc. (NYSE:SSD) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Analysts rate Simpson Manufacturing “Hold” overall: Of six brokerages, three recommend buying, two recommend holding and one recommends selling. The average 1-year price target is $216.25, compared with the stock’s reported price of $197.29.
• Quarterly results exceeded expectations: Simpson reported adjusted earnings of $3.09 per share versus the $2.72 consensus estimate, while revenue reached $671.08 million and increased 6.3% year over year.
• Institutional ownership remains high and the company declared a dividend: Hedge funds and other institutions own 93.68% of shares. The quarterly dividend is $0.30 per share, or $1.20 annualized, representing a 0.6% yield.

Simpson Manufacturing Company, Inc. (NYSE:SSD - Get Free Report) has earned a consensus recommendation of "Hold" from the six brokerages that are covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, two have given a hold recommendation and three have issued a buy recommendation on the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $216.25.

A number of research firms have commented on SSD. Wall Street Zen cut shares of Simpson Manufacturing from a "buy" rating to a "hold" rating in a research report on Sunday, May 17th. UBS Group reissued a "neutral" rating on shares of Simpson Manufacturing in a research note on Tuesday, July 28th. Stifel Nicolaus upped their price objective on shares of Simpson Manufacturing from $217.00 to $218.00 and gave the stock a "buy" rating in a report on Monday. Stephens increased their price objective on shares of Simpson Manufacturing from $210.00 to $215.00 and gave the stock a "cautious" rating in a research report on Tuesday, July 28th. Finally, DA Davidson lifted their target price on shares of Simpson Manufacturing from $200.00 to $212.00 and gave the company a "neutral" rating in a report on Tuesday, April 28th.

Institutional Investors Weigh In On Simpson Manufacturing

Several large investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC grew its position in Simpson Manufacturing by 135.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 160 shares of the construction company's stock valued at $25,000 after buying an additional 92 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Simpson Manufacturing in the 4th quarter worth $28,000. Los Angeles Capital Management LLC purchased a new stake in shares of Simpson Manufacturing in the fourth quarter valued at about $32,000. Brown Brothers Harriman & Co. purchased a new stake in shares of Simpson Manufacturing in the third quarter valued at about $34,000. Finally, Healthcare of Ontario Pension Plan Trust Fund purchased a new position in Simpson Manufacturing during the first quarter worth about $37,000. Hedge funds and other institutional investors own 93.68% of the company's stock.

Simpson Manufacturing Price Performance

SSD stock opened at $197.29 on Thursday. Simpson Manufacturing has a 52-week low of $156.32 and a 52-week high of $213.49. 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 cap of $8.12 billion, a price-to-earnings ratio of 21.56 and a beta of 1.31. The business has a fifty day moving average of $193.54 and a two-hundred day moving average of $187.66.

Simpson Manufacturing (NYSE:SSD - Get Free Report) last announced its quarterly earnings results 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 analyst estimates of $658.76 million. Simpson Manufacturing had a return on equity of 18.45% and a net margin of 15.65%.The company's quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.47 EPS. As a group, research analysts anticipate that Simpson Manufacturing will post 9.09 earnings per share for the current year.

Simpson Manufacturing Dividend Announcement

The company also recently declared 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 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Thursday, October 1st. Simpson Manufacturing's dividend payout ratio (DPR) is currently 13.11%.

Simpson Manufacturing Company 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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