Summit Materials Inc. (SUM) can make a big difference with a little luck

Summit Materials Inc. (NYSE: SUM) stock jumped 2.05% on Thursday to $31.91 against a previous-day closing price of $31.27. With 0.65 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.71 million shares. During the session, the Building Materials company that operates in wider Basic Materials sector, reached to the highest price of $31.94 whereas the lowest price it dropped to was $31.22. The 52-week range on SUM shows that it touched its highest point at $34.40 and its lowest point at $21.62 during that stretch. It currently has a 1-year price target of $37.69. Beta for the stock currently stands at 1.38.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SUM was down-trending over the past week, with a drop of -2.00%, but this was up by 21.01% over a month. Three-month performance surged to 7.26% while six-month performance rose 8.90%. The stock gained 25.78% in the past year, while it has gained 12.40% so far this year. A look at the trailing 12-month EPS for SUM yields 2.28 with Next year EPS estimates of 1.58. For the next quarter, that number is 0.58. This implies an EPS growth rate of 79.00% for this year and 19.25% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 35.90%.

Float and Shares Shorts:

At present, 118.68 million SUM shares are outstanding with a float of 117.91 million shares on hand for trading. On Apr 27, 2023, short shares totaled 6.0 million, which was 5.05% higher than short shares on Mar 30, 2023. In addition to Ms. Anne P. Noonan as the firm’s Pres, CEO & Director, Mr. Christopher Burke Gaskill serves as its Exec. VP, Chief Legal Officer & Sec.

Institutional Ownership:

Through their ownership of 104.84% of SUM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 72.22% of SUM, in contrast to 31.45% held by mutual funds. Shares owned by individuals account for 23.67%. As the largest shareholder in SUM with 9.85% of the stake, The Vanguard Group, Inc. holds 11,661,545 shares worth 11,661,545. A second-largest stockholder of SUM, T. Rowe Price Associates, Inc., holds 8,301,427 shares, controlling over 7.01% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SUM, holding 7,879,805 shares or 6.65% stake. With a 4.22% stake in SUM, the T Rowe Price Mid Cap Value Fund is the largest stakeholder. A total of 4,995,893 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 3.24% of SUM stock, is the second-largest Mutual Fund holder. It holds 3,835,753 shares valued at 105.14 million. Vanguard Total Stock Market ETF holds 3.11% of the stake in SUM, owning 3,677,785 shares worth 100.81 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 31, 2023, SUM reported revenue of $686.55M and operating income of $107.54M. The EBITDA in the recently reported quarter was $154.72M and diluted EPS was $1.57.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SUM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With SUM analysts setting a high price target of $50.00 and a low target of $31.00, the average target price over the next 12 months is $37.41. Based on these targets, SUM could surge 56.69% to reach the target high and fall by -2.85% to reach the target low. Reaching the average price target will result in a growth of 17.24% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded SUM stock several times over the past three months with 19 Buys and 4 Sells. In these transactions, 171,123 shares were bought while 54,998 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 219,435 while 76,208 shares were sold.

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