Summit Materials Inc (NYSE: SUM) has seen a decline in its stock price by -0.98 in relation to its previous close of 42.74. However, the company has experienced a -3.88% decline in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-03-20 that Housing starts & building permits increase in February, defying rates and labor shortage.
Is It Worth Investing in Summit Materials Inc (NYSE: SUM) Right Now?
The price-to-earnings ratio for Summit Materials Inc (NYSE: SUM) is 17.73x, which is above its average ratio. Moreover, the 36-month beta value for SUM is 1.32. Analysts have varying opinions on the stock, with 4 analysts rating it as a “buy,” 7 as “overweight,” 2 as “hold,” and 0 as “sell.”
The public float for SUM is 118.51M and currently, short sellers hold a 3.60% of that float. On April 05, 2024, SUM’s average trading volume was 1.03M shares.
SUM’s Market Performance
SUM stock saw a decrease of -3.88% in the past week, with a monthly decline of -1.92% and a quarterly a decrease of 14.97%. The volatility ratio for the week is 3.05%, and the volatility levels for the last 30 days are 2.25% for Summit Materials Inc (SUM). The simple moving average for the last 20 days is -0.97% for SUM stock, with a simple moving average of 15.61% for the last 200 days.
Analysts’ Opinion of SUM
Many brokerage firms have already submitted their reports for SUM stocks, with JP Morgan repeating the rating for SUM by listing it as a “Overweight.” The predicted price for SUM in the upcoming period, according to JP Morgan is $47 based on the research report published on February 23, 2024 of the current year 2024.
RBC Capital Mkts, on the other hand, stated in their research note that they expect to see SUM reach a price target of $38, previously predicting the price at $43. The rating they have provided for SUM stocks is “Sector Perform” according to the report published on January 12th, 2024.
Seaport Research Partners gave a rating of “Buy” to SUM, setting the target price at $47 in the report published on October 24th of the previous year.
SUM Trading at 4.29% from the 50-Day Moving Average
After a stumble in the market that brought SUM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -5.73% of loss for the given period.
Volatility was left at 2.25%, however, over the last 30 days, the volatility rate increased by 3.05%, as shares sank -2.56% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +18.18% upper at present.
During the last 5 trading sessions, SUM fell by -3.88%, which changed the moving average for the period of 200-days by +24.87% in comparison to the 20-day moving average, which settled at $42.68. In addition, Summit Materials Inc saw 10.04% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for SUM
Current profitability levels for the company are sitting at:
- 0.12 for the present operating margin
- 0.27 for the gross margin
The net margin for Summit Materials Inc stands at 0.11. The total capital return value is set at 0.07. Equity return is now at value 13.28, with 6.08 for asset returns.
Based on Summit Materials Inc (SUM), the company’s capital structure generated 0.5 points at debt to capital in total, while cash flow to debt ratio is standing at 0.19. The debt to equity ratio resting at 1.0. The interest coverage ratio of the stock is 2.81.
Currently, EBITDA for the company is 546.7 million with net debt to EBITDA at 1.68. When we switch over and look at the enterprise to sales, we see a ratio of 3.26. The receivables turnover for the company is 8.8for trailing twelve months and the total asset turnover is 0.51. The liquidity ratio also appears to be rather interesting for investors as it stands at 5.36.
Conclusion
To wrap up, the performance of Summit Materials Inc (SUM) has been mixed in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
