Summit Materials (NYSE:SUM) Sees Strong Trading Volume - Should You Buy?

Summit Materials, Inc. (NYSE:SUM - Get Free Report) shares saw an uptick in trading volume on Tuesday . 9,108,680 shares were traded during mid-day trading, an increase of 91% from the previous session's volume of 4,768,208 shares.The stock last traded at $52.04 and had previously closed at $51.10.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on SUM shares. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $52.50 target price (up from $43.00) on shares of Summit Materials in a report on Monday, November 25th. Barclays upgraded shares of Summit Materials from an "equal weight" rating to an "overweight" rating and boosted their target price for the company from $45.00 to $52.00 in a research note on Tuesday, October 29th. Longbow Research reiterated a "neutral" rating on shares of Summit Materials in a research report on Tuesday, November 26th. StockNews.com initiated coverage on shares of Summit Materials in a research report on Monday. They issued a "sell" rating on the stock. Finally, Loop Capital reaffirmed a "hold" rating and set a $52.50 price objective (down previously from $54.00) on shares of Summit Materials in a report on Tuesday, November 26th. One analyst has rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, Summit Materials presently has a consensus rating of "Hold" and a consensus price target of $50.54.

Summit Materials Price Performance

The stock has a market capitalization of $9.15 billion, a price-to-earnings ratio of 63.57 and a beta of 1.14. The company has a debt-to-equity ratio of 0.62, a quick ratio of 2.48 and a current ratio of 3.10. The company has a fifty day simple moving average of $49.99 and a two-hundred day simple moving average of $42.59.

Summit Materials (NYSE:SUM - Get Free Report) last issued its quarterly earnings results on Wednesday, October 30th. The construction company reported $0.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.05. Summit Materials had a return on equity of 6.90% and a net margin of 3.92%. The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter last year, the company posted $0.81 EPS. The company's revenue for the quarter was up 49.9% compared to the same quarter last year. As a group, equities research analysts expect that Summit Materials, Inc. will post 1.66 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Christopher Burke Gaskill sold 1,536 shares of the business's stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $50.91, for a total value of $78,197.76. Following the transaction, the insider now directly owns 40,221 shares of the company's stock, valued at $2,047,651.11. The trade was a 3.68 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.55% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. V Square Quantitative Management LLC acquired a new position in Summit Materials during the 3rd quarter worth approximately $27,000. Point72 Asia Singapore Pte. Ltd. purchased a new stake in shares of Summit Materials during the third quarter valued at approximately $28,000. Versant Capital Management Inc increased its position in shares of Summit Materials by 179.2% during the fourth quarter. Versant Capital Management Inc now owns 550 shares of the construction company's stock valued at $28,000 after acquiring an additional 353 shares during the last quarter. Toth Financial Advisory Corp increased its position in Summit Materials by 147.1% in the third quarter. Toth Financial Advisory Corp now owns 840 shares of the construction company's stock worth $33,000 after buying an additional 500 shares during the last quarter. Finally, International Assets Investment Management LLC increased its position in Summit Materials by 3,804.2% in the third quarter. International Assets Investment Management LLC now owns 937 shares of the construction company's stock worth $37,000 after buying an additional 913 shares during the last quarter.

Summit Materials Company Profile

Summit Materials, Inc is a vertically integrated construction materials company, which engages in manufacturing construction materials and related downstream products. It operates through the following segments: West, East, and Cement. The West segment includes operations in Texas, Utah, Arizona, Colorado, Idaho, Wyoming, Oklahoma, Arkansas and British Columbia, Canada.