Summit Materials (NYSE:SUM) Shares Gap Up – Should You Buy?

Summit Materials, Inc. (NYSE:SUM)’s share price gapped up before the market opened on Friday . The stock had previously closed at $43.29, but opened at $45.61. Summit Materials shares last traded at $45.38, with a volume of 527,709 shares.

Analysts Set New Price Targets

A number of brokerages have weighed in on SUM. JPMorgan Chase & Co. decreased their target price on Summit Materials from $47.00 to $43.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 9th. Royal Bank of Canada upgraded shares of Summit Materials from a “sector perform” rating to an “outperform” rating and upped their price objective for the stock from $45.00 to $53.00 in a research report on Friday. Stifel Nicolaus dropped their target price on shares of Summit Materials from $55.00 to $47.00 and set a “buy” rating for the company in a research report on Wednesday, July 3rd. Stephens reaffirmed an “overweight” rating and set a $47.00 price objective on shares of Summit Materials in a report on Tuesday, August 6th. Finally, Morgan Stanley assumed coverage on Summit Materials in a research note on Monday, August 26th. They issued an “overweight” rating and a $51.00 target price on the stock. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $47.83.

Summit Materials Stock Performance

The company has a quick ratio of 2.01, a current ratio of 2.62 and a debt-to-equity ratio of 0.64. The company has a fifty day moving average price of $38.73 and a 200 day moving average price of $38.70. The stock has a market cap of $8.04 billion, a PE ratio of 20.49 and a beta of 1.17.

Summit Materials (NYSE:SUM) last announced its quarterly earnings results on Monday, August 5th. The construction company reported $0.66 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.05. Summit Materials had a return on equity of 7.00% and a net margin of 8.06%. The business had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.14 billion. The business’s quarterly revenue was up 58.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.71 EPS. Analysts expect that Summit Materials, Inc. will post 1.63 earnings per share for the current year.

Institutional Investors Weigh In On Summit Materials

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in Summit Materials by 2.2% in the 1st quarter. Vanguard Group Inc. now owns 12,240,546 shares of the construction company’s stock worth $545,561,000 after acquiring an additional 262,179 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of Summit Materials by 0.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 8,837,110 shares of the construction company’s stock worth $393,871,000 after purchasing an additional 22,840 shares during the last quarter. Massachusetts Financial Services Co. MA grew its stake in shares of Summit Materials by 6.6% in the second quarter. Massachusetts Financial Services Co. MA now owns 7,210,736 shares of the construction company’s stock worth $263,985,000 after purchasing an additional 448,922 shares during the last quarter. Victory Capital Management Inc. increased its holdings in Summit Materials by 7.0% during the 2nd quarter. Victory Capital Management Inc. now owns 3,678,485 shares of the construction company’s stock valued at $134,669,000 after purchasing an additional 241,757 shares during the period. Finally, Millennium Management LLC raised its position in Summit Materials by 16.9% during the 2nd quarter. Millennium Management LLC now owns 2,753,816 shares of the construction company’s stock valued at $100,817,000 after purchasing an additional 399,072 shares during the last quarter.

Summit Materials Company Profile

Summit Materials, Inc operates as a vertically integrated construction materials company in the United States and Canada. It operates in three segments: West, East, and Cement. The company offers aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components.