Summit Materials Received its Third Buy in a Row

By Carrie Williams

After SunTrust Robinson and Stifel Nicolaus assigned a Buy rating to Summit Materials in the last month, the company received another Buy, this time from RBC Capital. Analyst Robert Wetenhall reiterated a Buy rating on Summit Materials (NYSE: SUM) yesterday and set a price target of $36. The company’s shares closed yesterday at $29.90.

According to TipRanks.com, Wetenhall is a top 25 analyst with an average return of 18.3% and a 82.4% success rate. Wetenhall covers the Industrial Goods sector, focusing on stocks such as Continental Building Products, Installed Building Products, and Advanced Drainage Systems.

Currently, the analyst consensus on Summit Materials is Strong Buy and the average price target is $37.33, representing a 24.8% upside.

In a report issued on October 30, Stifel Nicolaus also reiterated a Buy rating on the stock with a $38 price target.

Based on Summit Materials’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $634 million and quarterly net profit of $79.05 million. In comparison, last year the company earned revenue of $529 million and had a net profit of $44.82 million.

Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Douglas Charles Rauh, the Title: EVP and Chief Operating Officer of SUM sold 26,324 shares for a total of $825,514.

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Summit Materials, Inc. operates as a construction materials company. The company operates its business through the following segments: Cement, West and East. The Cement consists of its Hannibal, Missouri and Davenport, Iowa cement plants and distribution terminals along the Mississippi river from Minnesota to Louisiana.