Summit Materials (SUM) Trading Up 9.7% Following Earnings Beat
Shares of Summit Materials Inc (NYSE:SUM) were up 9.7% during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $31.76 and last traded at $31.58. Approximately 5,455,735 shares traded hands during trading, an increase of 343% from the average daily volume of 1,232,785 shares. The stock had previously closed at $28.79.
The construction company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.27 by $0.19. Summit Materials had a return on equity of 9.83% and a net margin of 4.09%. The company had revenue of $490.02 million for the quarter, compared to the consensus estimate of $449.45 million. During the same quarter last year, the company posted $0.06 earnings per share. The company’s revenue for the quarter was up 15.8% compared to the same quarter last year.
Several equities analysts have commented on SUM shares. Canaccord Genuity reiterated a “buy” rating and set a $12.50 price target on shares of Summit Materials in a report on Wednesday, November 8th. Royal Bank of Canada reiterated a “buy” rating on shares of Summit Materials in a report on Thursday, November 2nd. SunTrust Banks set a $38.00 price target on Summit Materials and gave the company a “buy” rating in a report on Tuesday, October 24th. Citigroup increased their price target on Summit Materials from $37.00 to $39.00 and gave the company a “buy” rating in a report on Thursday, January 25th. Finally, TheStreet cut Summit Materials from a “b” rating to a “c” rating in a research report on Thursday, February 8th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and seven have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $32.44.
Institutional investors and hedge funds have recently bought and sold shares of the company. Bank of Montreal Can boosted its position in shares of Summit Materials by 310.5% in the fourth quarter. Bank of Montreal Can now owns 3,325 shares of the construction company’s stock valued at $104,000 after acquiring an additional 2,515 shares during the period. First Manhattan Co. bought a new position in Summit Materials in the third quarter worth $160,000. Cubist Systematic Strategies LLC bought a new position in Summit Materials in the third quarter worth $180,000. Daiwa Securities Group Inc. bought a new position in Summit Materials in the third quarter worth $202,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank lifted its position in Summit Materials by 39.6% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,998 shares of the construction company’s stock worth $220,000 after purchasing an additional 1,985 shares during the period.
The company has a market cap of $3,206.20, a PE ratio of 46.79, a P/E/G ratio of 1.90 and a beta of 1.81. The company has a debt-to-equity ratio of 1.48, a current ratio of 2.59 and a quick ratio of 2.01.
About Summit Materials
Summit Materials, Inc is a construction materials company. The Company operates through three segments: West, East and Cement. As of December 31, 2016, the Company had operations in 21 states in the United States and in British Columbia, Canada. The Company’s materials include aggregates, which it supplies across the United States, and in British Columbia, Canada, and cement, which it supplies along the Mississippi River from Minneapolis to New Orleans.
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