Simpson Manufacturing (NYSE:SSD) Shares Gap Up on Strong 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) gapped up before the market opened on Tuesday following a better than expected earnings announcement. 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.

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

Simpson Manufacturing Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 23rd. Stockholders of record on Thursday, October 2nd will be paid a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Thursday, October 2nd. Simpson Manufacturing's dividend payout ratio (DPR) is presently 14.80%.

Analyst Upgrades and Downgrades

Separately, DA Davidson lifted their price target on Simpson Manufacturing from $180.00 to $185.00 and gave the company a "neutral" rating in a research note on Tuesday.

Hedge Funds Weigh In On Simpson Manufacturing

A number of institutional investors have recently modified their holdings of the company. Kayne Anderson Rudnick Investment Management LLC raised its position in Simpson Manufacturing by 0.9% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 4,534,724 shares of the construction company's stock valued at $712,314,000 after buying an additional 40,461 shares during the last quarter. JPMorgan Chase & Co. raised its position in Simpson Manufacturing by 1.8% in the 1st quarter. JPMorgan Chase & Co. now owns 1,747,872 shares of the construction company's stock valued at $274,556,000 after buying an additional 30,614 shares during the last quarter. Baker Avenue Asset Management LP raised its position in Simpson Manufacturing by 4.6% in the 4th quarter. Baker Avenue Asset Management LP now owns 1,399,918 shares of the construction company's stock valued at $232,148,000 after buying an additional 62,165 shares during the last quarter. Geode Capital Management LLC raised its position in Simpson Manufacturing by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 710,166 shares of the construction company's stock valued at $117,804,000 after buying an additional 2,502 shares during the last quarter. Finally, Burgundy Asset Management Ltd. raised its position in Simpson Manufacturing by 6.8% in the 1st quarter. Burgundy Asset Management Ltd. now owns 673,535 shares of the construction company's stock valued at $105,799,000 after buying an additional 43,099 shares during the last quarter. 93.68% of the stock is owned by institutional investors and hedge funds.

Simpson Manufacturing Price Performance

The stock has a market cap of $7.48 billion, a P/E ratio of 22.82 and a beta of 1.26. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.54 and a current ratio of 3.37. The business has a 50 day simple moving average of $160.95 and a 200-day simple moving average of $160.17.

Simpson Manufacturing Company Profile

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.