JAMES ANDRASICK Executes Sell Order: Offloads $89K In Simpson Manufacturing Co Stock

JAMES ANDRASICK, Director at Simpson Manufacturing Co SSD, executed a substantial insider sell on August 29, according to an SEC filing.

What Happened: ANDRASICK's recent move involves selling 500 shares of Simpson Manufacturing Co. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $89,375.

The latest update on Friday morning shows Simpson Manufacturing Co shares down by 0.0%, trading at $181.25.

Get to Know Simpson Manufacturing Co Better

Simpson Manufacturing Co Inc is a manufacturer of wood construction products. The company offers connectors, truss plates, fastening systems, fasteners, prefabricated lateral systems, concrete construction products, adhesives, mechanical anchors, carbide drill bits, powder-actuated tools, and fiber-reinforced materials. Simpson Manufacturing markets its products to the residential, light industrial, and commercial construction markets as well as the remodeling and do-it-yourself markets. The largest end market is the United States. The Company is organized into three reporting segments defined by the regions namely North America, Europe, and Asia Pacific. The company generates the majority of its revenue from wood products.

Unraveling the Financial Story of Simpson Manufacturing Co

Decline in Revenue: Over the 3 months period, Simpson Manufacturing Co faced challenges, resulting in a decline of approximately -0.1% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Insights into Profitability:

• Gross Margin: Achieving a high gross margin of 46.66%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Simpson Manufacturing Co's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.32.

Debt Management: Simpson Manufacturing Co's debt-to-equity ratio is below the industry average at 0.31, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 23.3 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.5 is above industry norms, reflecting an elevated valuation for Simpson Manufacturing Co's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 14.91, Simpson Manufacturing Co's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Delving Into the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Simpson Manufacturing Co's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.