On September 11, 2023, Roger Dankel, the Executive Vice President of North American Sales at Simpson Manufacturing Co Inc (SSD, Financial), sold 40 shares of the company. This move is part of a series of transactions made by the insider over the past year, which have seen a total of 6,740 shares sold and no shares purchased.
Simpson Manufacturing Co Inc is a renowned company in the building products industry. The company designs, engineers, and manufactures wood construction products, including connectors, truss plates, fastening systems, fasteners, and shearwalls. Simpson Manufacturing Co Inc also offers concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, and fiber-reinforced materials.
The insider's recent transaction has raised questions about the relationship between insider sell/buy patterns and the stock price. Over the past year, there have been 14 insider sells and no insider buys for Simpson Manufacturing Co Inc. This trend is illustrated in the following image:
The stock was trading at $157.88 per share on the day of the insider's recent sell, giving the company a market cap of $6.558 billion. The price-earnings ratio stands at 19.31, higher than the industry median of 11.85 but lower than the company's historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Simpson Manufacturing Co Inc is modestly undervalued. The stock's price-to-GF-Value ratio is 0.92, with a GF Value of $171.36, as shown in the image below:
The insider's sell transactions over the past year, coupled with the absence of insider buys, may suggest a cautious outlook. However, the stock's modest undervaluation according to the GF Value indicates potential for growth. Investors should keep a close eye on further insider transactions and other market indicators to make informed decisions.
It's important to note that insider transactions are just one of many factors that investors should consider when evaluating a stock. Other factors such as the company's financial health, its competitive position, and the overall market conditions also play a crucial role.
As always, it's recommended to conduct thorough research and consider multiple factors before making investment decisions.
