07. Simpson Manufacturing Co., Inc. (NYSE:SSD)
Number of Hedge Fund Holders: 21
Simpson Manufacturing Co., Inc. (NYSE:SSD) designs, engineers, manufactures, and sells structural solutions for wood, concrete, and steel connections. The company offers wood construction products such as connectors, truss plates, fastening systems, fasteners, shearwalls, and pre-fabricated lateral systems for light-frame construction. In the latest earnings report announced on July 22, the company reported a normalized EPS of $2.33, missing expectations by $0.11. This slight shortfall indicates challenges in meeting profit forecasts. Revenue was $596.98 million, falling short by $7.68 million, suggesting lower-than-expected sales or operational inefficiencies.
Simpson Manufacturing Co., Inc. (NYSE:SSD) forward dividend yield stands at 0.58%, which is relatively modest, providing some income to investors but not a major draw for those focused on dividends. The annual payout of $1.12 reflects a steady commitment to returning value to shareholders. With a payout ratio of 13.09%, the company retains most of its earnings for reinvestment, indicating potential for future growth. Over the past five years, the dividend growth rate has been 4.14%, showing steady but moderate growth, while nine consecutive years of dividend increases highlight a solid track record of rewarding shareholders.
The forward P/E ratio (Non-GAAP) of 23.76 suggests the stock is reasonably valued, reflecting market expectations of continued profitability. However, the year-to-date price return is -3.45%, indicating that the stock has underperformed and possibly due to missed earnings and revenue targets. Compared to the S&P 500’s robust 14.54% year-to-date return, Simpson Manufacturing Co., Inc. (NYSE:SSD) performance highlights investor concerns or broader industry challenges.
In Q1 2024, the count of hedge funds holding stakes in Simpson Manufacturing Co., Inc. (NYSE:SSD) rose to 21 from 19 in the previous quarter, based on Insider Monkey’s database of 920 hedge funds. These stakes collectively amount to around $273.61 million in value. John W. Rogers’s Ariel Investments emerged as the largest stakeholder among these hedge funds during this period.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Simpson Manufacturing Co., Inc. (NYSE:SSD) in its fourth quarter 2023 investor letter:
“Simpson Manufacturing Co., Inc. (NYSE:SSD): SSD designs and manufactures connectors, fasteners, and anchors used in residential and commercial construction. The company’s 3Q results continued to demonstrate its very strong business model. The company slightly exceeded revenue and earnings expectations for 3Q. It also modestly raised operating margin guidance. In addition to the strong fundamental results, the stock certainly benefited from lower interest rates during the quarter, which improved market sentiment for housing-related stocks.”