Summit Therapeutics (NASDAQ:SMMT) Sees Large Volume Increase - Should You Buy?

Key Points

• SMMT shares rose to $14.63 from a prior close of $13.36, while mid-day trading volume was approximately 4.06 million shares—slightly below the previous session.
• Analyst sentiment is mixed: the consensus rating is Hold, with an average price target of $24.07. Recent actions included Guggenheim reiterating Buy, Bernstein upgrading to Market Perform, and Stifel cutting its target to $38 while maintaining Buy.
• Summit reported quarterly EPS of negative $0.28, narrowly missing estimates, and analysts expect approximately negative $1.20 EPS for the full year. Insiders bought 7.87 million shares worth about $103.6 million over the past 90 days, with insiders owning 83.5% of the company.

Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report) saw an uptick in trading volume on Wednesday . Approximately 4,059,113 shares were traded during mid-day trading, a decline of 1% from the previous session's volume of 4,117,148 shares.The stock last traded at $14.6290 and had previously closed at $13.36.

Analyst Ratings Changes

SMMT has been the subject of several recent analyst reports. Guggenheim restated a "buy" rating on shares of Summit Therapeutics in a research note on Wednesday. Sanford C. Bernstein raised Summit Therapeutics from an "underperform" rating to a "market perform" rating and lifted their price objective for the company from $9.80 to $11.90 in a report on Tuesday. Stifel Nicolaus lowered their price objective on Summit Therapeutics from $45.00 to $38.00 and set a "buy" rating on the stock in a report on Friday, July 24th. Wall Street Zen downgraded Summit Therapeutics from a "hold" rating to a "sell" rating in a research note on Saturday, July 18th. Finally, Summit Redstone set a $11.90 price target on Summit Therapeutics in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Summit Therapeutics has a consensus rating of "Hold" and an average target price of $24.07.

Summit Therapeutics Price Performance

The firm's 50-day simple moving average is $14.11 and its two-hundred day simple moving average is $16.17. The company has a market capitalization of $11.31 billion, a price-to-earnings ratio of -12.66 and a beta of -1.23.

Summit Therapeutics (NASDAQ:SMMT - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.27) by ($0.01). On average, analysts expect that Summit Therapeutics PLC will post -1.2 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Manmeet Singh Soni acquired 50,000 shares of Summit Therapeutics stock in a transaction that occurred on Thursday, June 4th. The stock was purchased at an average cost of $14.45 per share, with a total value of $722,500.00. Following the completion of the acquisition, the chief financial officer owned 3,123,603 shares in the company, valued at $45,136,063.35. This trade represents a 1.63% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Mahkam Zanganeh bought 3,810,000 shares of the firm's stock in a transaction on Friday, June 12th. The shares were purchased at an average price of $13.12 per share, for a total transaction of $49,987,200.00. Following the completion of the transaction, the chief executive officer owned 573,883,879 shares of the company's stock, valued at $7,529,356,492.48. This represents a 0.67% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 7,870,000 shares of company stock valued at $103,616,900. 83.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Summit Therapeutics

Large investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System increased its holdings in Summit Therapeutics by 334.8% during the 2nd quarter. California State Teachers Retirement System now owns 27,785 shares of the company's stock valued at $405,000 after acquiring an additional 21,394 shares in the last quarter. AXQ Capital LP increased its stake in shares of Summit Therapeutics by 98.1% during the 2nd quarter. AXQ Capital LP now owns 93,624 shares of the company's stock worth $1,364,000 after purchasing an additional 46,356 shares in the last quarter. Nykredit A S purchased a new position in shares of Summit Therapeutics during the 2nd quarter worth approximately $111,000. Two Sigma Securities LLC acquired a new position in shares of Summit Therapeutics during the 2nd quarter worth approximately $182,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Summit Therapeutics by 13.4% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 90,338 shares of the company's stock worth $1,316,000 after purchasing an additional 10,642 shares during the last quarter. 4.61% of the stock is owned by institutional investors and hedge funds.

About Summit Therapeutics

Summit Therapeutics plc is a clinical‐stage biotechnology company dedicated to the discovery and development of precision medicines for serious and life‐threatening diseases. The company applies a targeted approach to drug design, focusing on novel mechanisms of action that differentiate its candidates from existing therapies.

Summit's lead asset, ridinilazole (formerly SMT19969), is being developed to treat Clostridioides difficile infections and has received both Fast Track and Qualified Infectious Disease Product designations from the U.S.

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