DA Davidson Has Lowered Expectations for Simpson Manufacturing (NYSE:SSD) Stock Price

Simpson Manufacturing (NYSE:SSD) had its price objective dropped by investment analysts at DA Davidson from $212.00 to $203.00 in a research note issued on Tuesday, Benzinga reports. The firm currently has a “neutral” rating on the construction company’s stock. DA Davidson‘s target price would suggest a potential upside of 6.26% from the stock’s current price.

Other equities analysts have also issued reports about the company. Stephens reiterated a “cautious” rating and issued a $205.00 price objective on shares of Simpson Manufacturing in a research note on Tuesday. UBS Group restated a “neutral” rating on shares of Simpson Manufacturing in a research note on Tuesday, July 28th. Stifel Nicolaus decreased their target price on Simpson Manufacturing from $218.00 to $210.00 and set a “buy” rating for the company in a research note on Monday. Robert W. Baird raised their target price on Simpson Manufacturing from $205.00 to $210.00 and gave the company an “outperform” rating in a report on Tuesday. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Simpson Manufacturing in a research report on Thursday. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $207.00.

Simpson Manufacturing Stock Performance

SSD traded up $9.04 during trading on Tuesday, hitting $191.03. The stock had a trading volume of 134,047 shares, compared to its average volume of 292,161. The firm has a market cap of $7.86 billion, a PE ratio of 20.89 and a beta of 1.32. Simpson Manufacturing has a 12 month low of $156.32 and a 12 month high of $213.49. The company has a current ratio of 3.29, a quick ratio of 2.14 and a debt-to-equity ratio of 0.15. The company has a 50 day simple moving average of $177.96 and a 200-day simple moving average of $185.08.

Simpson Manufacturing (NYSE:SSD) last released its earnings results on Monday, October 26th. The construction company reported $2.68 earnings per share for the quarter, topping analysts’ consensus estimates of $2.44 by $0.24. Simpson Manufacturing had a net margin of 15.65% and a return on equity of 18.45%. The firm had revenue of $638.13 million during the quarter, compared to analyst estimates of $624.39 million. During the same quarter in the previous year, the business earned $2.58 EPS. The business’s revenue was up 2.3% on a year-over-year basis. Analysts expect that Simpson Manufacturing will post 9.28 EPS for the current year.

Simpson Manufacturing declared that its board has initiated a stock repurchase program on Monday, October 26th that authorizes the company to buy back $1 billion in outstanding shares. This buyback authorization authorizes the construction company to reacquire up to 13.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its shares are undervalued.

Insider Activity at Simpson Manufacturing

In other news, CEO Michael Olosky sold 3,502 shares of the company’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $172.84, for a total transaction of $605,285.68. Following the completion of the transaction, the chief executive officer owned 51,398 shares of the company’s stock, valued at approximately $8,883,630.32. This represents a 6.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.34% of the company’s stock.

Institutional Trading of Simpson Manufacturing

Institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in Simpson Manufacturing in the second quarter valued at about $862,138,000. State Street Corp raised its holdings in shares of Simpson Manufacturing by 2.9% in the second quarter. State Street Corp now owns 1,308,394 shares of the construction company’s stock valued at $273,910,000 after buying an additional 37,206 shares during the last quarter. Quantinno Capital Management LP lifted its position in shares of Simpson Manufacturing by 0.5% during the first quarter. Quantinno Capital Management LP now owns 857,918 shares of the construction company’s stock worth $147,236,000 after purchasing an additional 4,168 shares in the last quarter. First Trust Advisors LP boosted its position in Simpson Manufacturing by 6.3% in the 1st quarter. First Trust Advisors LP now owns 582,201 shares of the construction company’s stock valued at $99,917,000 after buying an additional 34,598 shares during the last quarter. Finally, Maren Capital LLC increased its position in Simpson Manufacturing by 0.5% in the second quarter. Maren Capital LLC now owns 513,029 shares of the construction company’s stock worth $107,403,000 after purchasing an additional 2,639 shares during the period. Institutional investors and hedge funds own 93.68% of the company’s stock.

Trending Headlines about Simpson Manufacturing

Here are the key news stories impacting Simpson Manufacturing this week:

• Positive Sentiment: Q3 earnings and revenue beat estimates: Simpson reported adjusted earnings of $2.68 per share, above the $2.44 consensus estimate, while revenue rose 2.3% year over year to $638.1 million, exceeding expectations of $624.4 million. Net income increased 1.6% to $109.1 million, and diluted EPS rose 3.9% from $2.58 a year earlier. Simpson Manufacturing third-quarter financial results
• Positive Sentiment: Large buyback supports the stock: The board authorized up to $1.0 billion in share repurchases, representing as much as 13.2% of outstanding shares. Simpson also repurchased $66.3 million of stock during the quarter. The authorization signals management’s confidence in the company’s valuation and could support future EPS growth. Simpson Manufacturing share repurchase authorization
• Positive Sentiment: Analyst raises price target: Robert W. Baird increased its target from $205 to $210 and maintained an “outperform” rating, implying roughly 10% upside from the cited reference price. Robert W. Baird stock recommendations
• Positive Sentiment: Shareholder returns remain favorable: Simpson declared a quarterly dividend of $0.30 per share and maintained a strong balance sheet, with $491.3 million in cash versus $308.0 million of debt.
• Neutral Sentiment: Guidance reflects steady but moderate growth: The company forecast a 2026 consolidated operating margin of 20.0% to 20.5%, including an expected $11 million gain from vacant-land sales. Pricing actions and cost controls are helping protect margins in an uncertain construction market.
• Negative Sentiment: International weakness remains a risk: North American sales rose 3.8% to $502.0 million, but European sales declined 3.4% to $129.9 million. The relatively modest overall revenue growth suggests demand remains uneven.

Simpson Manufacturing Company Profile

Simpson Manufacturing Co, Inc develops, manufactures and sells structural solutions for residential, commercial and industrial construction. Its products are designed to connect and reinforce wood, concrete and other building materials, supporting applications ranging from new construction to repair, remodeling and retrofit projects.

The company is best known for its Simpson Strong-Tie brand, which offers structural connectors, fasteners, anchors, specialty products, adhesives and related installation systems.