Simpson Manufacturing (NYSE:SSD) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Simpson Manufacturing's shares gapped up, opening at $179.99 after reporting better-than-expected earnings of $2.47 per share for the quarter, surpassing estimates by $0.08.
• The company also declared a $0.29 quarterly dividend, with an annualized payout of $1.16 and a yield of 0.64%.
• Institutional investors own 93.68% of Simpson Manufacturing's stock, indicating strong institutional interest and confidence in the company's performance.

Simpson Manufacturing Company, Inc. (NYSE:SSD - Get Free Report)'s share price gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $166.01, but opened at $179.99. Simpson Manufacturing shares last traded at $177.88, with a volume of 62,905 shares traded.

The construction company reported $2.47 EPS for the quarter, topping analysts' consensus estimates of $2.39 by $0.08. The business had revenue of $631.06 million during the quarter, compared to the consensus estimate of $601.80 million. Simpson Manufacturing had a net margin of 14.53% and a return on equity of 17.72%. The firm's revenue was up 5.7% on a year-over-year basis. During the same period in the previous year, the company posted $2.31 earnings per share.

Simpson Manufacturing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 23rd. Investors of record on Thursday, October 2nd will be given a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 0.63%. The ex-dividend date is Thursday, October 2nd. Simpson Manufacturing's payout ratio is currently 15.10%.

Analyst Upgrades and Downgrades

Separately, DA Davidson boosted their target price on shares of Simpson Manufacturing from $180.00 to $185.00 and gave the stock a "neutral" rating in a research report on Tuesday.

Institutional Trading of Simpson Manufacturing

Large investors have recently added to or reduced their stakes in the company. Quarry LP acquired a new stake in shares of Simpson Manufacturing during the fourth quarter worth about $28,000. Investment Management Corp VA ADV purchased a new stake in shares of Simpson Manufacturing in the 4th quarter valued at $28,000. Ameritas Advisory Services LLC acquired a new stake in shares of Simpson Manufacturing in the second quarter worth $31,000. Harbor Capital Advisors Inc. purchased a new position in shares of Simpson Manufacturing during the first quarter worth $45,000. Finally, CWM LLC lifted its position in Simpson Manufacturing by 39.1% during the first quarter. CWM LLC now owns 331 shares of the construction company's stock valued at $52,000 after purchasing an additional 93 shares during the period. Hedge funds and other institutional investors own 93.68% of the company's stock.

Simpson Manufacturing Stock Up 0.1%

The company has a quick ratio of 1.54, a current ratio of 3.37 and a debt-to-equity ratio of 0.18. The company has a market capitalization of $7.69 billion, a price-to-earnings ratio of 23.44 and a beta of 1.28. The business's 50-day moving average is $159.98 and its 200-day moving average is $159.94.

About Simpson Manufacturing

Simpson Manufacturing Co, Inc, through its subsidiaries, designs, engineers, manufactures, and sells structural solutions for wood, concrete, and steel connections. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products.