Summit Materials (NYSE:SUM) Sets New 1-Year High After Earnings Beat

Summit Materials, Inc. (NYSE:SUM) hit a new 52-week high on Wednesday following a better than expected earnings announcement. The stock traded as high as $46.41 and last traded at $46.37, with a volume of 95802 shares changing hands. The stock had previously closed at $46.01.

The construction company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.70 by $0.05. Summit Materials had a net margin of 3.92% and a return on equity of 7.30%. The business had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.17 billion. During the same period last year, the business earned $0.81 earnings per share. The firm’s revenue was up 49.9% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on SUM shares. JPMorgan Chase & Co. reduced their price objective on shares of Summit Materials from $47.00 to $43.00 and set an “overweight” rating for the company in a research report on Wednesday, October 9th. Barclays raised shares of Summit Materials from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $45.00 to $52.00 in a research report on Tuesday. Truist Financial reduced their price objective on shares of Summit Materials from $53.00 to $47.00 and set a “buy” rating for the company in a research report on Wednesday, August 7th. Royal Bank of Canada raised shares of Summit Materials from a “sector perform” rating to an “outperform” rating and lifted their price objective for the stock from $45.00 to $53.00 in a research report on Friday, October 25th. Finally, Citigroup reduced their price objective on shares of Summit Materials from $47.00 to $46.00 and set a “buy” rating for the company in a research report on Wednesday, October 9th. One research analyst has rated the stock with a sell rating, two have given a hold rating and ten have given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $48.42.

Institutional Trading of Summit Materials

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Hood River Capital Management LLC bought a new stake in Summit Materials in the first quarter valued at approximately $33,206,000. River Road Asset Management LLC boosted its holdings in Summit Materials by 15.9% in the third quarter. River Road Asset Management LLC now owns 3,567,938 shares of the construction company’s stock valued at $139,257,000 after acquiring an additional 488,688 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its holdings in 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 valued at $263,985,000 after acquiring an additional 448,922 shares during the last quarter. Interval Partners LP bought a new stake in Summit Materials in the first quarter valued at approximately $18,051,000. Finally, Millennium Management LLC boosted its holdings in Summit Materials by 16.9% in the second quarter. Millennium Management LLC now owns 2,753,816 shares of the construction company’s stock valued at $100,817,000 after acquiring an additional 399,072 shares during the last quarter.

Summit Materials Price Performance

The company has a fifty day moving average of $39.52 and a 200 day moving average of $38.88. The firm has a market capitalization of $8.32 billion, a P/E ratio of 57.82 and a beta of 1.17. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.62 and a quick ratio of 2.01.

About Summit Materials

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.