Simpson Manufacturing (NYSE:SSD) to Repurchase $1 billion in Shares

Simpson Manufacturing (NYSE:SSD) announced that its Board of Directors has authorized a share buyback program on Monday, October 26th, RTT News reports. The company plans to buy back $1 billion in outstanding shares. This buyback authorization allows the construction company to repurchase up to 13.2% of its shares through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its stock is undervalued.

Simpson Manufacturing Stock Performance

Shares of SSD traded down $1.95 during trading hours on Monday, reaching $182.41. 620,008 shares of the company traded hands, compared to its average volume of 311,833. The stock has a market capitalization of $7.50 billion, a P/E ratio of 19.94 and a beta of 1.32. The company has a quick ratio of 2.14, a current ratio of 3.29 and a debt-to-equity ratio of 0.15. Simpson Manufacturing has a 12-month low of $156.32 and a 12-month high of $213.49. The business has a fifty day moving average price of $177.96 and a 200-day moving average price 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 (EPS) for the quarter, beating the consensus estimate of $2.45 by $0.23. The firm had revenue of $638.13 million for the quarter, compared to the consensus estimate of $625.39 million. Simpson Manufacturing had a return on equity of 18.45% and a net margin of 15.65%. The firm’s revenue was up 2.3% on a year-over-year basis. During the same period in the prior year, the firm earned $2.58 EPS. Equities analysts anticipate that Simpson Manufacturing will post 9.28 EPS for the current fiscal year.

Simpson Manufacturing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 28th. Stockholders of record on Thursday, January 7th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, January 7th. Simpson Manufacturing’s dividend payout ratio (DPR) is presently 13.11%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on SSD shares. UBS Group restated a “neutral” rating on shares of Simpson Manufacturing in a report on Tuesday, July 28th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Simpson Manufacturing in a research report on Thursday. Stifel Nicolaus lowered their target price on shares of Simpson Manufacturing from $218.00 to $210.00 and set a “buy” rating for the company in a research note on Monday. Finally, Stephens boosted their target price on shares of Simpson Manufacturing from $210.00 to $215.00 and gave the stock a “cautious” rating in a research report on Tuesday, July 28th. Three 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. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $214.25.

Trending Headlines about Simpson Manufacturing

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

• Positive Sentiment: Quarterly results exceeded expectations: Simpson reported diluted EPS of $2.68, up 3.9% year over year and above consensus estimates near $2.45–$2.47. Revenue rose 2.3% to $638.1 million, topping expectations of approximately $625 million. Simpson Manufacturing 2026 Third Quarter Financial Results
• Positive Sentiment: $1 billion share repurchase authorization: The board approved a new authorization effective October 22, following $66.3 million of stock repurchases during the quarter. The program could support per-share earnings and signal confidence in the company’s valuation. Simpson Manufacturing New Share Repurchase Authorization
• Positive Sentiment: North American demand remained healthy: Sales in North America increased 3.8% to $502.0 million. The company also declared a quarterly dividend of $0.30 per share. Simpson Manufacturing Q3 Revenue Update

Insider Activity

In other news, CEO Michael Olosky sold 3,502 shares of the firm’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $172.84, for a total value of $605,285.68. Following the completion of the transaction, the chief executive officer directly owned 51,398 shares in the company, valued at $8,883,630.32. This trade represents a 6.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.34% of the stock is currently owned by insiders.

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.