Summit Materials Inc. (SUM) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of Summit Materials Inc. (NYSE:SUM) from a hold rating to a buy rating in a research report released on Thursday. The brokerage currently has $21.00 price objective on the stock.
According to Zacks, “Summit Materials, Inc. is a construction material company. The company supplies aggregates, cement, ready-mix concrete and asphalt primarily in the United States and western Canada. Summit Materials, Inc. is headquartered in Denver, Colorado. “
Other research analysts have also issued reports about the company. Citigroup Inc. lifted their target price on Summit Materials from $25.00 to $26.00 and gave the stock a buy rating in a report on Thursday, August 4th. Bank of America Corp. reiterated a buy rating on shares of Summit Materials in a report on Friday, June 17th. Finally, DA Davidson reiterated a buy rating and set a $27.00 target price on shares of Summit Materials in a report on Wednesday, August 31st. Two equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The company presently has an average rating of Buy and a consensus price target of $24.50.
Shares of Summit Materials (NYSE:SUM) traded down 2.17% on Thursday, hitting $18.94. The stock had a trading volume of 351,699 shares. Summit Materials has a one year low of $13.12 and a one year high of $24.97. The stock has a market capitalization of $1.43 billion, a PE ratio of 56.88 and a beta of 2.07. The firm’s 50 day moving average is $19.13 and its 200-day moving average is $20.39.
Summit Materials (NYSE:SUM) last posted its earnings results on Wednesday, August 3rd. The company reported $0.46 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.47 by $0.01. The business had revenue of $412.60 million for the quarter, compared to the consensus estimate of $417.14 million. Summit Materials had a return on equity of 11.60% and a net margin of 2.02%. The business’s revenue was up 22.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.01) earnings per share. Equities research analysts expect that Summit Materials will post $0.10 earnings per share for the current fiscal year.
In related news, CEO Thomas W. Hill sold 10,000 shares of the stock in a transaction that occurred on Thursday, July 14th. The shares were sold at an average price of $21.45, for a total transaction of $214,500.00. Following the transaction, the chief executive officer now owns 10,150 shares in the company, valued at $217,717.50. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, major shareholder Holdings L.P. Blackstone II sold 12,209,704 shares of the stock in a transaction that occurred on Tuesday, July 19th. The shares were sold at an average price of $20.67, for a total transaction of $252,374,581.68. The disclosure for this sale can be found here. Corporate insiders own 4.49% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of SUM. Adage Capital Partners GP L.L.C. bought a new position in shares of Summit Materials during the second quarter worth $40,920,000. Linscomb & Williams Inc. increased its position in shares of Summit Materials by 932.0% in the second quarter. Linscomb & Williams Inc. now owns 1,571,150 shares of the company’s stock worth $32,146,000 after buying an additional 1,418,900 shares during the period. Point72 Asset Management L.P. increased its position in shares of Summit Materials by 251.1% in the second quarter. Point72 Asset Management L.P. now owns 1,524,700 shares of the company’s stock worth $31,195,000 after buying an additional 1,090,400 shares during the period. Westfield Capital Management Co. LP bought a new position in shares of Summit Materials during the second quarter worth $22,039,000. Finally, Vanguard Group Inc. increased its position in shares of Summit Materials by 30.5% in the second quarter. Vanguard Group Inc. now owns 4,387,266 shares of the company’s stock worth $89,763,000 after buying an additional 1,024,661 shares during the period. Institutional investors own 87.79% of the company’s stock.
About Summit Materials
Summit Materials, Inc is a construction materials company. The Company operates through three segments: the west segment, which includes operations in Texas, the Mountain states of Utah, Colorado, Idaho and Wyoming, and in British Columbia, Canada; east segment, which serves markets across the Midwestern and Eastern United States, and Cement segment, which consists of its Hannibal, Missouri and Davenport, Iowa cement plants and approximately eight distribution terminals along the Mississippi River from Minnesota to Louisiana.
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