The Vanguard Group, Inc. recently announced the acquisition of new stake in Summit Materials Inc. (NYSE:SUM). The institutional investor has increased its shareholding in the Basic Materials company by 1.92% to 10.34 million shares with purchase of 0.19 million shares. This fresh investment now brings its stake to 9.06% valued currently at $166.29 million. In addition, Fidelity Management & Research Co. raised its holdings by 2.34 million to 6.6 million shares. And Principal Global Investors LLC has lifted its position by 4.71% or 0.26 million shares – to 5.73 million shares.
With over 1.54 million Summit Materials Inc. (SUM) shares trading Wednesday and a closing price of $17.51 on the day, the dollar volume was approximately $26.97 million. The shares have shown a positive weekly performance of 1.90% and its price on 07/22/20 lost nearly -1.13%. Currently, there are 113.60M common shares owned by the public and among those 113.52M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for SUM have a consensus price objective of $21.22. The analysts have set the share’s price value over the next 12 months at a high of $25.00 and a low of $15.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Summit Materials Inc. stock is 2.10 for the next 12 months. The average price target is 9.93% above its last price level and an upside to the estimated low will see the stock lose -12.97% over that period. But an upside of 29.96% will see the stock hit the forecast high price target while mean target price for the stock is $22.00.
Insiders at the company have transacted a total of 51 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 37 of these insider trades were purchases, accounting for 1,112,747 shares. Insider sales of the common stock occurred on 14 occasions, with total insider shares sold totaling 502,220 shares.
The top 3 mutual fund holders in Summit Materials Inc. are Janus Henderson Triton Fund, Principal Investors – Mid Cap Fun, and Vanguard Total Stock Market Index. Janus Henderson Triton Fund owns 4.92 million shares of the company’s stock, all valued at over $79.12 million. The company sold -0.57 million shares recently to bring their total holdings to about 4.31% of the shares outstanding. Principal Investors – Mid Cap Fun bought 0.2 million shares to see its total holdings expand to 4.0 million shares valued at over $64.34 million and representing 3.51% of the shares outstanding. Vanguard Total Stock Market Index bought 43877.0 shares to bring its total holdings to over 3.26 million shares at a value of $52.47 million. Vanguard Total Stock Market Index now owns shares totaling to 2.86% of the shares outstanding.
Shares of Summit Materials Inc. (NYSE: SUM) opened at $18.63, up $0.92 from a prior closing price of $17.71. However, the script later closed the day at $17.51, down -1.13%. The company’s stock has a 5-day price change of 1.90% and 49.70% over the past three months. SUM shares are trading -25.90% year to date (YTD), with the 12-month market performance down to -3.12% lower. It has a 12-month low price of $7.51 and touched a high of $25.22 over the same period. Currently, 1.54 million shares have been traded, compared to an average intraday trading volume of 1.23 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.99%, 10.55%, and -7.57% respectively.
Institutional ownership of Summit Materials Inc. (NYSE: SUM) 113.60M shares outstanding. Mutual fund holders own 37.46%, while other institutional holders and individual stakeholders account for 70.12% and 24.17% respectively.
It has a market capitalization of $1.97B and a beta (3y monthly) value of 1.72. The stock’s trailing 12-month PE ratio is 24.39, while the earnings-per-share (ttm) stands at $0.73. The company has a PEG of 2.77 and a Quick Ratio of 1.60 with the debt-to-equity ratio at 1.36. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.51% over the week and 5.65% over the month.
Analysts forecast that Summit Materials Inc. (SUM) will achieve an EPS of $0.58 for the current quarter, $0.17 for the next quarter and $0.72 for 2021. The lowest estimate earnings-per-share for the quarter is $0.38 while analysts give the company a high EPS estimate of $0.79. Comparatively, EPS for the current quarter was $0.5 a year ago. Earnings per share for the fiscal year are expected to increase by 14.30%, and 42.61% over the next financial year. EPS should shrink at an annualized rate of 8.80% over the next five years, compared to 50.40% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Summit Materials Inc. (SUM) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 5 of the 17 advise that investors “hold,” and 1 rated it as a “Sell.”
Looking at the support for the SUM, a number of firms have released research notes about the stock. Loop Capital stated their Buy rating for the stock in a research note on July 23, 2020, with the firm’s price target at. CFRA coverage for the Summit Materials Inc. (SUM) stock in a research note released on July 22, 2020 offered a Strong Buy rating with a price target of. Stephens was of a view on April 30, 2020 that the stock is Equal-Weight, while DA Davidson gave the stock Neutral rating on April 22, 2020, issuing a price target of. Loop Capital on their part issued Hold rating on April 17, 2020.