Summit Materials (NYSE:SUM) Shares Gap Up - Time to Buy?

Summit Materials, Inc. (NYSE:SUM - Get Free Report) 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 changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SUM shares. Royal Bank of Canada raised shares of Summit Materials from a "sector perform" rating to an "outperform" rating and upped their price target for the company from $45.00 to $53.00 in a report on Friday. Stephens reiterated an "overweight" rating and set a $47.00 price target on shares of Summit Materials in a research report on Tuesday, August 6th. Morgan Stanley assumed coverage on Summit Materials in a report on Monday, August 26th. They issued an "overweight" rating and a $51.00 price target for the company. Jefferies Financial Group dropped their price objective on shares of Summit Materials from $58.00 to $56.00 and set a "buy" rating on the stock in a research note on Wednesday, October 9th. Finally, Truist Financial lowered their price target on shares of Summit Materials from $53.00 to $47.00 and set a "buy" rating on the stock in a report on Wednesday, August 7th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and nine have assigned a buy rating to the company. According to MarketBeat, Summit Materials has an average rating of "Moderate Buy" and an average target price of $47.83.

Summit Materials Price Performance

The firm has a market capitalization of $7.91 billion, a PE ratio of 20.13 and a beta of 1.17. The stock's 50 day simple moving average is $38.80 and its two-hundred day simple moving average is $38.73. The company has a debt-to-equity ratio of 0.64, a quick ratio of 2.01 and a current ratio of 2.62.

Summit Materials (NYSE:SUM - Get Free Report) last announced its quarterly earnings data on Monday, August 5th. The construction company reported $0.66 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.05. The firm had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.14 billion. Summit Materials had a return on equity of 7.00% and a net margin of 8.06%. The firm's revenue was up 58.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.71 earnings per share. On average, sell-side analysts forecast that Summit Materials, Inc. will post 1.63 EPS for the current year.

Hedge Funds Weigh In On Summit Materials

A number of institutional investors have recently bought and sold shares of SUM. Johnson Investment Counsel Inc. raised its position in shares of Summit Materials by 5.8% during the 2nd quarter. Johnson Investment Counsel Inc. now owns 5,941 shares of the construction company's stock valued at $218,000 after buying an additional 327 shares during the period. Waycross Investment Management Co raised its position in Summit Materials by 1.0% in the second quarter. Waycross Investment Management Co now owns 41,076 shares of the construction company's stock valued at $1,504,000 after purchasing an additional 412 shares during the period. Xponance Inc. raised its position in Summit Materials by 6.2% in the second quarter. Xponance Inc. now owns 7,687 shares of the construction company's stock valued at $281,000 after purchasing an additional 448 shares during the period. InterOcean Capital Group LLC lifted its stake in shares of Summit Materials by 4.5% in the 1st quarter. InterOcean Capital Group LLC now owns 10,591 shares of the construction company's stock valued at $472,000 after purchasing an additional 455 shares during the last quarter. Finally, Toth Financial Advisory Corp grew its holdings in shares of Summit Materials by 147.1% during the 3rd quarter. Toth Financial Advisory Corp now owns 840 shares of the construction company's stock worth $33,000 after purchasing an additional 500 shares during the period.

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.