Is it a Good Choice to Acquire Summit Materials (SUM) Shares?

Carillon Tower Advisers, an investment management firm, published its “Carillon Eagle Small Cap Growth Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Small-cap stocks overall posted rather disappointing returns in the second quarter of 2022. In what has become a common theme, the Russell 2000® Growth Index (down 19.26%) significantly lagged its Russell 2000® Value Index (down 15.28%) counterpart and has now trailed in seven consecutive quarters Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Carillon Eagle Small Cap Growth Fund mentioned Summit Materials, Inc. (NYSE:SUM) and explained its insights for the company. Founded in 2009, Summit Materials, Inc. (NYSE:SUM) is a Denver, Colorado-based building material company with a $2.9 billion market capitalization. Summit Materials, Inc. (NYSE:SUM) delivered a -36.60% return since the beginning of the year, while its 12-month returns are down by -21.72%. The stock closed at $25.45 per share on October 04, 2022.

Here is what Carillon Eagle Small Cap Growth Fund has to say about Summit Materials, Inc. (NYSE:SUM) in its Q2 2022 investor letter:

Summit Materials is a vertically integrated construction materials-based company that supplies aggregates, cement, ready-mix concrete, and asphalt in the United States and British Columbia. Fears of a potential economic slowdown and a corresponding cooling in construction activity weighed on the company’s shares in the quarter. However, Summit has made noteworthy strides in optimizing its business portfolio through the divestiture of underperforming assets, allowing it to drive margins higher through efficiency gains and accretive acquisitions. Summit also is the beneficiary of ongoing migration trends favoring construction activity in the exurban and rural markets it primarily serves.”

Construction

Our calculations show that Summit Materials, Inc. (NYSE:SUM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Summit Materials, Inc. (NYSE:SUM) was in 15 hedge fund portfolios at the end of the second quarter of 2022, compared to 21 funds in the previous quarter. Summit Materials, Inc. (NYSE:SUM) delivered a 10.36% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Summit Materials, Inc. (NYSE:SUM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.

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