Morgan Stanley has recently initiated Summit Materials Inc (SUM) stock to Overweight rating, as announced on August 26, 2024, according to Finviz. Earlier, on May 15, 2024, Wolfe Research had raised the stock from a Peer Perform to Outperform, setting a price target of $49. JP Morgan also resumed Overweight rating with a price target of $47. Additionally, RBC Capital Mkts reduced Sector Perform rating on January 12, 2024, with a target price of $38. Seaport Research Partners analysts, in their report published on October 24, 2023, also raised Buy rating for Summit Materials Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Summit Materials Inc (SUM) Stock Trading Recap
On Friday, Summit Materials Inc (SUM) stock saw a modest uptick, ending the day at $42.28 which represents a slight increase of $0.53 or 1.27% from the prior close of $41.75. The stock opened at $41.78 and touched a low of $41.49 during the day, reaching a high of $42.65. The volume of shares traded was 1.34 million exceeding the average volume of 0.98 million.
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SUM Stock Performance and Moving Averages
In recent trading, Summit Materials Inc (SUM) stock price has shown some volatility, fluctuating 9.56% over the last five trades and 4.97% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 10.36%, and it has gained 8.44% in the previous three months. Currently, SUM is trading at 9.33%, 9.73%, and 8.27% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, SUM, a Basic Materials sector stock, is trading -5.82% below its 52-week high but remains 37.14% above its 52-week low. The Average True Range (ATR) (14 days) of 1.17 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Summit Materials Inc’s Profitability and Valuation Ratios
Summit Materials Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 12.23% and a profit margin of 8.06%, with a gross margin of 10.36%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Summit Materials Inc’s market capitalization stands at $7.42 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 19.67, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 19.68. Additionally, the Price-to-Sales Ratio is 2.2, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.71, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 31.93% of Summit Materials Inc (SUM)’s shares, while financial institutions hold 69.78%.
Notable insider trades include Kilgore Jason, See Remarks at Summit Materials Inc (SUM), who sold 50589 shares on May 13 ’24, at $40.21 each, totaling $2.03 million.