Simpson Manufacturing stock hits 52-week low at $153.73

Published 21/03/2025, 15:56
Simpson Manufacturing stock hits 52-week low at $153.73

In a challenging market environment, Simpson Manufacturing Co. Inc. (NYSE:SSD) stock has touched a 52-week low, dipping to $153.73. According to InvestingPro data, the company maintains strong financial health with a GOOD overall rating, supported by robust liquidity metrics and a current ratio of 3.21. The company, known for its building solutions and construction materials, has faced a significant downturn over the past year, with its stock price reflecting a 1-year change of -23.84%. Despite the decline, the company has maintained dividend payments for 22 consecutive years and analysts have set price targets ranging from $185 to $192, suggesting potential upside. Investors are closely monitoring the stock as it hovers at this low point, considering the broader implications for the construction sector and the potential for a rebound in the company’s financial performance. For a deeper understanding of SSD’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Simpson Manufacturing reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $1.31, which fell short of the forecasted $1.55. Despite this, the company exceeded revenue expectations, achieving $517.43 million compared to the projected $510.17 million. The company’s North American sales showed a 4% increase, marking the strongest comparison of the year, and contributing to its overall solid performance that surpassed U.S. housing starts. However, the gross margin decreased to 46% from 47.1% in 2023, highlighting challenges in maintaining profitability.

Simpson Manufacturing is considering potential price hikes in response to ongoing tariff-induced steel cost increases and other inflationary pressures. While these adjustments are expected to enhance margins and earnings, the timing and scale of such increases remain undetermined. DA Davidson maintained its Neutral rating on Simpson Manufacturing, with a revised price target of $185, citing the need for clarity on potential price initiatives and concerns around new residential construction activity. The firm also adjusted its earnings forecasts slightly downward following the company’s fourth-quarter results.

Simpson Manufacturing’s leadership expressed a commitment to maintaining operating margins at or above 20%, despite a modestly disappointing initial outlook for 2025. The company plans capital expenditures between $150 to $170 million and aims to continue outperforming housing starts. Investors and market watchers will be closely monitoring Simpson Manufacturing as it navigates these challenges and considers implementing price increases.

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