Joe Simpson is one proud grandpa!

Shortly after his daughter, Jessica, welcomed her first child with fiance Eric Johnson -- a girl named Maxwell Drew Johnson -- Joe is already showering his second grandchild with gifts.

PHOTOS: Look back at Jessica's pregnancy

On Tuesday, Joe, 51, was seen picking out a giant pink stuffed bear for little Maxwell at the Cedars-Sinai Hospital gift shop in Los Angeles.

"He was really happy and told us the gift was for his new granddaughter," an insider tells Us Weekly. "He revealed both baby and mom were doing well."

PHOTOS: Jessica and other stars who posed nude while pregnant

Immediately after purchasing the bear -- which carried an $80 price tag! -- Joe brought the gift up to the hospital's maternity ward. Little Maxwell joins older cousin Bronx -- the 3-year-old son of Jessica's sister Ashlee Simpson and ex Pete Wentz.

PHOTOS: Jessica and Eric's sweet love story

"Eric and I are elated to announce the birth of our baby Maxwell Drew Johnson 9 lbs. 13 oz. 21 3/4," Jessica, 31, wrote on her website Tuesday. "We are so grateful for all of the love, support and prayers we have received. This has been the greatest experience of our lives!"

This article originally appeared on Jessica Simpson's Dad Joe Buys Pink, $80 Teddy Bear for Baby Maxwell