Summit Materials, Inc. (SUM): Important Takeaways

On the technicals front, Summit Materials, Inc. (NYSE:SUM) overall has 64% Buy rating. The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the SUM’s short-term trajectory should know that short terms indicators for the stock averaged 60% Buy with an average daily trading volume over the past 20 days at 1828375 shares. SUM stock has overall a 0.75% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 1940834 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 2706063 shares, is 33% Buy on the basis of long term indicators.

The share price is currently staying around the first support level of $15.62. Below this, the next support is placed in the zone of $15.41. Till the time, the SUM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 63.34 on daily chart, which may remain a cause for concern. If the price breaks below $15.41 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $15.99 mark may result into a pull-back move towards $16.15 level.

Summit Materials, Inc. (SUM) is projected to climb by 24.07 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $23 price as 12-month high target. This represents a whopping 45.29 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $20, which represents a return potential of 26.34 percent when compared to the closing price of the stock of $15.83 on Monday, February 11. The lowest price target for the stock is $15 — slightly more than -5.24 percent from SUM’s current share price.

Here’s a rundown of insider trading activity for sense of Summit Materials, Inc. (NYSE:SUM). The earliest insider trade took place on 12/10/2018. Harris Brian James gathered a total of 4 thousand shares of company at average share price of $13.19. The total for the purchase was set at $52.76 thousand. After this transaction, the EVP & CFO account balance stood at 136.58 thousand shares. The stock grew 18.65 percent since that insider purchase. On 11/19/2018, Beck Thomas A.,, purchased 10 thousand shares at a price per share of $13.97. This added 139.7 thousand shares to the insider’s fortune and the stock saw a 12.03 percent rally in value since the news became public. This transaction left 12.91 thousand shares in the account. On 11/08/2018, EVP & CFO Harris Brian James performed a purchase transaction worth $70.6 thousand. This purchase at $14.12 each has added 5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 10.84 percent increase since the transaction was reported. The insider now is left with 132.58 thousand shares remaining in the account. Watson Karl, who performs the EVP & COO job, bought 35.5 thousand shares for $750.83 thousand. The acquisition occurred on 08/03/2018 was priced at $21.15 per share. The share price plunged -26 percent since the reporting date. Watson Karl now left with a stake of 35.5 thousand SUM stock worth $561.97 thousand after the insider buying.

SUM shares accumulated 0.18 points or 1.15 percent on Monday to $15.83 with a light trade volume of 1.863 million shares. After opening the session at $15.75, the shares went as high as $15.94 and as low as $15.57, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.78 billion and now has 112.23 million shares outstanding. Summit Materials, Inc. (SUM) stock has gained 11.24 percent of market value in 21 trading days.

Analysts at Stifel lifted target price for shares of Summit Materials, Inc. (NYSE:SUM) but repeated their Buy recommendation for the stock in their opinion released on August 03. The price target has been raised from $38 to $34. Analysts at Goldman issued an upgrade from Neutral to Buy for the stock, in a research note that dated back to February 27.

SUM stock has a trailing 3-year beta of 1.87, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.45 a share in the trailing twelve months. The stock’s value has surged 27.66 percent year to date (YTD) against a decline of -44.5 percent in 12 month’s time. The company’s shares still trade -52.48 percent away from its 1-year high of $33.31 and 40.71 percent up from 52-week low of $11.25. The average consensus rating on the company is 1.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Summit Materials, Inc. (SUM) are trading at a P/E ratio of 34.57 times earnings reported for the past 12 months. The industry SUM operates in has an average P/E of 44.35. Its P/E ratio went as low as 26.82X and as high as 70.23 over the 5-year span. Further, it is sporting a 0.85 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.49. 29.8 percent is the gross profit margin for Summit Materials, Inc. and operating margin sits at 8.3 percent. Along with this, the net profit margin is 1.6 percent.

SUM will be declaring its Q1 financial results on May 07. Analysts are forecasting revenue to climb 3.4 percent to $456M in the next fiscal quarter, while earnings are seen soaring by nearly -84.78 percent to $0.07 per share. History has shown that shares in Summit Materials, Inc. have gone up on 10 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.54 per share, worse than the $0.71, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $445M, worse than the $455M analysts expected. Earnings are estimated to increase by 152.8 percent this year, 41.6 percent next year and continue to increase by 16.27 percent annually for the next 5 years.