Summit Materials (NYSE:SUM) Cut to Strong Sell at Zacks Investment Research

Zacks Investment Research cut shares of Summit Materials (NYSE:SUM) from a hold rating to a strong sell rating in a report published on Tuesday, Zacks.com reports.

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 analysts also recently issued research reports about the company. Barclays set a $22.00 target price on Summit Materials and gave the company a hold rating in a research note on Tuesday, October 15th. Exane BNP Paribas assumed coverage on Summit Materials in a report on Wednesday, October 9th. They issued an outperform rating for the company. Stifel Nicolaus set a $28.00 price target on Summit Materials and gave the company a buy rating in a report on Tuesday, October 8th. BNP Paribas assumed coverage on Summit Materials in a report on Wednesday, October 9th. They issued an outperform rating for the company. Finally, ValuEngine cut Summit Materials from a buy rating to a hold rating in a report on Wednesday, October 2nd. One analyst has rated the stock with a sell rating, five have issued a hold rating and six have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $23.00.

SUM stock traded down $0.49 during mid-day trading on Tuesday, hitting $22.01. The stock had a trading volume of 852,217 shares, compared to its average volume of 1,516,916. The company has a current ratio of 2.34, a quick ratio of 1.75 and a debt-to-equity ratio of 1.35. Summit Materials has a 1-year low of $11.25 and a 1-year high of $24.42. The company has a fifty day moving average of $22.47 and a 200 day moving average of $19.27. The stock has a market capitalization of $2.57 billion, a price-to-earnings ratio of 146.73 and a beta of 2.17.

Summit Materials (NYSE:SUM) last released its quarterly earnings results on Wednesday, October 30th. The construction company reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.70 by ($0.20). Summit Materials had a return on equity of 1.40% and a net margin of 0.20%. The company had revenue of $665.85 million for the quarter, compared to the consensus estimate of $674.18 million. During the same quarter last year, the company posted $0.54 EPS. The business’s revenue was up 6.5% compared to the same quarter last year. As a group, sell-side analysts expect that Summit Materials will post 0.49 earnings per share for the current fiscal year.

In other news, insider Mikel Shane Evans sold 344,231 shares of the stock in a transaction that occurred on Friday, November 1st. The stock was sold at an average price of $23.60, for a total value of $8,123,851.60. Following the completion of the transaction, the insider now directly owns 6,288 shares of the company’s stock, valued at approximately $148,396.80. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director John Raymond Murphy sold 7,809 shares of the firm’s stock in a transaction on Friday, November 1st. The shares were sold at an average price of $22.94, for a total value of $179,138.46. Following the sale, the director now directly owns 7,494 shares of the company’s stock, valued at $171,912.36. The disclosure for this sale can be found here. Over the last three months, insiders sold 382,040 shares of company stock valued at $9,010,990. 1.76% of the stock is currently owned by insiders.

A number of hedge funds have recently added to or reduced their stakes in SUM. FMR LLC increased its holdings in Summit Materials by 1.9% during the 1st quarter. FMR LLC now owns 2,735,230 shares of the construction company’s stock valued at $43,408,000 after purchasing an additional 50,440 shares in the last quarter. First Trust Advisors LP increased its holdings in Summit Materials by 16.2% during the 1st quarter. First Trust Advisors LP now owns 137,267 shares of the construction company’s stock valued at $2,178,000 after purchasing an additional 19,123 shares in the last quarter. State of New Jersey Common Pension Fund D increased its holdings in Summit Materials by 5.0% during the 2nd quarter. State of New Jersey Common Pension Fund D now owns 840,280 shares of the construction company’s stock valued at $16,175,000 after purchasing an additional 40,000 shares in the last quarter. Skylands Capital LLC acquired a new stake in Summit Materials during the 2nd quarter valued at $193,000. Finally, Aperio Group LLC increased its holdings in Summit Materials by 3.4% during the 2nd quarter. Aperio Group LLC now owns 53,824 shares of the construction company’s stock valued at $1,036,000 after purchasing an additional 1,795 shares in the last quarter.

Summit Materials Company Profile

Summit Materials, Inc, through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, residential and nonresidential, and other markets. It operates in three segments: West, East, and Cement. The company's products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components.

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