Summit Therapeutics (NASDAQ:SMMT) Hits New 1-Year Low - Here's Why

Key Points

• Summit Therapeutics shares hit a new 52-week low, falling 4.8% to approximately $12.20 and trading below both their 50-day and 200-day moving averages.
• Analysts have recently lowered price targets, with consensus standing at a “Hold” rating and an average target price of $24.25. The company also narrowly missed quarterly earnings expectations, reporting a loss of $0.28 per share versus estimates of $0.27.
• Insiders remained bullish, purchasing 7.87 million shares worth about $103.6 million during the latest quarter; insiders collectively own 83.5% of the company.

Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report) shares reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $12.15 and last traded at $12.2040, with a volume of 1224445 shares traded. The stock had previously closed at $13.35.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on SMMT shares. KeyCorp restated an "overweight" rating on shares of Summit Therapeutics in a report on Monday, June 1st. Jefferies Financial Group set a $15.00 price objective on shares of Summit Therapeutics in a report on Friday, July 24th. Guggenheim decreased their target price on Summit Therapeutics from $40.00 to $38.00 and set a "buy" rating for the company in a research report on Friday, July 24th. Stifel Nicolaus lowered their target price on Summit Therapeutics from $45.00 to $38.00 and set a "buy" rating for the company in a research note on Friday, July 24th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of Summit Therapeutics in a research report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $24.25.

Summit Therapeutics Stock Down 4.8%

The company's fifty day moving average price is $14.23 and its 200-day moving average price is $16.27. The stock has a market capitalization of $10.14 billion, a PE ratio of -11.35 and a beta of -1.23.

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

Insider Transactions at Summit Therapeutics

In other news, CFO Manmeet Singh Soni purchased 50,000 shares of the company's stock in a transaction that occurred on Thursday, June 4th. The shares were bought at an average price of $14.45 per share, for a total transaction of $722,500.00. Following the purchase, the chief financial officer directly owned 3,123,603 shares in the company, valued at approximately $45,136,063.35. This trade represents a 1.63% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Robert W. Duggan acquired 3,810,000 shares of Summit Therapeutics stock in a transaction on Friday, June 12th. The shares were purchased at an average price of $13.12 per share, with a total value of $49,987,200.00. Following the completion of the purchase, the chief executive officer owned 573,883,879 shares in the company, 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. Insiders purchased a total of 7,870,000 shares of company stock valued at $103,616,900 in the last quarter. 83.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in shares of Summit Therapeutics during the 2nd quarter valued at about $138,838,000. Price T Rowe Associates Inc. MD raised its position in Summit Therapeutics by 106.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,371,415 shares of the company's stock worth $163,907,000 after acquiring an additional 4,832,592 shares during the period. Baker BROS. Advisors LP grew its position in shares of Summit Therapeutics by 7.9% during the 4th quarter. Baker BROS. Advisors LP now owns 36,391,063 shares of the company's stock valued at $636,480,000 after acquiring an additional 2,668,089 shares during the period. Norges Bank purchased a new stake in shares of Summit Therapeutics in the 4th quarter worth $24,030,000. Finally, Bank of America Corp DE purchased a new position in Summit Therapeutics during the second quarter valued at $12,603,000. Hedge funds and other institutional investors own 4.61% of the company's stock.

Summit Therapeutics Company Profile

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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