Is Buying Stock Like Summit Materials Inc Good Idea After Today’s Bullish Options Activity?

 Is Buying Stock Like Summit Materials Inc Good Idea After Today's Bullish Options Activity?

In today’s session Summit Materials Inc (SUM) registered an unusually high (264) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the November, 2016 call, expecting serious SUM increase. With 264 contracts traded and 9144 open interest for the Nov, 16 contract, it seems this is a quite bullish bet. The option with symbol: SUM161118C00020000 closed last at: $0.75 or 21.1% down. The stock increased 0.66% or $0.12 during the last trading session, hitting $18.43. About 744,746 shares traded hands. Summit Materials Inc (NYSE:SUM) has declined 3.17% since March 1, 2016 and is downtrending. It has underperformed by 12.42% the S&P500.

Analysts await Summit Materials Inc (NYSE:SUM) to report earnings on November, 1. They expect $0.74 earnings per share, up 4.23% or $0.03 from last year’s $0.71 per share. SUM’s profit will be $105.60 million for 6.23 P/E if the $0.74 EPS becomes a reality. After $0.46 actual earnings per share reported by Summit Materials Inc for the previous quarter, Wall Street now forecasts 60.87% EPS growth.

Summit Materials Inc (NYSE:SUM) Ratings Coverage

Out of 7 analysts covering Summit Materials (NYSE:SUM), 6 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 86% are positive. Summit Materials has been the topic of 13 analyst reports since August 17, 2015 according to StockzIntelligence Inc. Goldman Sachs upgraded Summit Materials Inc (NYSE:SUM) rating on Friday, October 2. Goldman Sachs has “Buy” rating and $29 price target. Barclays Capital maintained Summit Materials Inc (NYSE:SUM) rating on Tuesday, March 22. Barclays Capital has “Equal-Weight” rating and $20 price target. On Wednesday, November 4 the stock rating was maintained by RBC Capital Markets with “Outperform”. Citigroup maintained Summit Materials Inc (NYSE:SUM) rating on Monday, April 18. Citigroup has “Buy” rating and $24 price target. The stock of Summit Materials Inc (NYSE:SUM) earned “Buy” rating by RBC Capital Markets on Friday, August 28. Bank of America upgraded Summit Materials Inc (NYSE:SUM) on Thursday, October 8 to “Buy” rating. The firm has “Buy” rating by Citigroup given on Thursday, August 4. Citigroup initiated the shares of SUM in a report on Tuesday, August 18 with “Neutral” rating. The firm has “Buy” rating by DA Davidson given on Monday, August 17.

Summit Materials, Inc. is a construction materials company. The company has a market cap of $2.63 billion. The Firm operates through three divisions: the west segment, which includes activities in Texas, the Mountain states of Utah, Colorado, Idaho and Wyoming, and in British Columbia, Canada; east segment, which serves markets across the Midwestern and Eastern United States, and Cement segment, which consists of its Hannibal, Missouri and Davenport, Iowa cement plants and approximately eight distribution terminals along the Mississippi River from Minnesota to Louisiana. It has a 30.38 P/E ratio. It supplies aggregates, ready-mixed concrete, asphalt paving mix and paving and related services in the West segment, and aggregates, ready-mixed concrete, asphalt paving mix and paving and related services in east segment.

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