Summit Materials (NYSE:SUM) Upgraded by Royal Bank of Canada to Outperform

Summit Materials (NYSE:SUM) was upgraded by research analysts at Royal Bank of Canada from a “sector perform” rating to an “outperform” rating in a research note issued to investors on Friday, MarketBeat.com reports. The firm presently has a $53.00 price objective on the construction company’s stock, up from their prior price objective of $45.00. Royal Bank of Canada’s price target indicates a potential upside of 17.52% from the company’s current price.

A number of other brokerages have also commented on SUM. Stephens reiterated an “overweight” rating and issued a $47.00 price objective on shares of Summit Materials in a research report on Tuesday, August 6th. Stifel Nicolaus dropped their price target on shares of Summit Materials from $55.00 to $47.00 and set a “buy” rating for the company in a research note on Wednesday, July 3rd. Citigroup cut their price objective on shares of Summit Materials from $47.00 to $46.00 and set a “buy” rating on the stock in a report on Wednesday, October 9th. Jefferies Financial Group lowered their target price on shares of Summit Materials from $58.00 to $56.00 and set a “buy” rating for the company in a report on Wednesday, October 9th. Finally, DA Davidson reissued a “neutral” rating and issued a $41.00 price target on shares of Summit Materials in a research note on Tuesday, October 15th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $47.83.

Summit Materials Price Performance

SUM opened at $45.10 on Friday. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.62 and a quick ratio of 2.01. The stock has a market capitalization of $7.91 billion, a P/E ratio of 20.13 and a beta of 1.17. The company’s 50 day simple moving average is $38.93 and its 200-day simple moving average is $38.73. Summit Materials has a one year low of $30.83 and a one year high of $46.20.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SUM. Johnson Investment Counsel Inc. increased its holdings in shares of Summit Materials by 5.8% in the second quarter. Johnson Investment Counsel Inc. now owns 5,941 shares of the construction company’s stock worth $218,000 after acquiring an additional 327 shares in the last quarter. Waycross Investment Management Co increased its stake in Summit Materials by 1.0% during the 2nd quarter. Waycross Investment Management Co now owns 41,076 shares of the construction company’s stock worth $1,504,000 after purchasing an additional 412 shares in the last quarter. Xponance Inc. increased its stake in Summit Materials by 6.2% during the 2nd quarter. Xponance Inc. now owns 7,687 shares of the construction company’s stock worth $281,000 after purchasing an additional 448 shares in the last quarter. InterOcean Capital Group LLC raised its holdings in Summit Materials by 4.5% during the 1st quarter. InterOcean Capital Group LLC now owns 10,591 shares of the construction company’s stock worth $472,000 after buying an additional 455 shares during the period. Finally, Toth Financial Advisory Corp lifted its stake in Summit Materials by 147.1% in the third quarter. Toth Financial Advisory Corp now owns 840 shares of the construction company’s stock valued at $33,000 after buying an additional 500 shares in 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.