Summit Materials Inc. (SUM) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Summit Materials Inc. faces considerable business risk due to the substantial influence of Cementos Argos, which owns approximately 31% of Summit’s outstanding Class A common stock. This ownership level affords Cementos Argos significant sway over Summit’s strategic decisions, as delineated in a Stockholders Agreement that requires Summit to obtain Argos’s consent for certain critical actions. Such actions include incurring significant indebtedness and making major changes to business operations. The potential for conflicting interests between Cementos Argos and other Summit stakeholders raises concerns about the future direction of the company and could adversely affect the market perception and trading value of Summit’s shares.
Overall, Wall Street has a Moderate Buy consensus rating on SUM stock based on 4 Buys and 4 Holds.
To learn more about Summit Materials Inc.’s risk factors, click here.
