Heartland buys $1.02M stake in Simpson Manufacturing as Q2 profit beats estimates
What's the deal? Heartland Advisors Inc.Dealroom has a profile for this one. Try Dealroom → bought a new position in Simpson Manufacturing Company, Inc.Dealroom has a profile for this one. Try Dealroom → (NYSE:SSD) in the second quarter, acquiring 4,877 shares valued at roughly $1,021,000, according to HoldingsChannel.comDealroom has a profile for this one. Try Dealroom →. Simpson, through its Simpson Strong-TieDealroom has a profile for this one. Try Dealroom → brand, is a global supplier of structural building products.
The numbers: Simpson reported earnings of $3.09 per share for the quarter ended July 27, beating the consensus estimate of $2.72 by $0.37. Revenue reached $671.08 million, up 6.3% year on year and ahead of the $658.76 million forecast.
Why now? Several institutional investors adjusted their holdings in the quarter. Ceredex Value Advisors LLCDealroom has a profile for this one. Try Dealroom → took a new position worth about $9,463,000 and NewEdge Wealth LLCDealroom has a profile for this one. Try Dealroom → bought a stake valued at roughly $5,031,000, while smaller buyers included Denali Advisors LLCDealroom has a profile for this one. Try Dealroom → and Allworth Financial LPDealroom has a profile for this one. Try Dealroom →. Institutional investors own 93.68% of the company.
What's the endgame? The company posted a net margin of 15.65% and a return on equity of 18.45%. It also declared a quarterly dividend of $0.30, payable on October 22, for a $1.20 annualised dividend and a yield of 0.6%. Analysts forecast full-year earnings of 9.09 EPS.
The market view: SSD opened at $188.66 on Friday, giving it a market capitalisation of $7.76 billion and a P/E ratio of 20.62. The stock trades between a one-year low of $156.32 and a high of $213.49. Analysts hold a consensus "Hold" rating with an average target price of $216.25.
The signal: Steady institutional buying alongside a Q2 earnings beat points to continued confidence in Simpson despite a cautious tone from some analysts.
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