Summit Therapeutics (NASDAQ:SMMT) Issues Earnings Results

Key Points

• Summit reported ($0.24) EPS, beating analysts' consensus of ($0.27) by $0.03 despite remaining a loss for the quarter.
• Shares to $16.11 on Friday on heavy trading (18.1M shares vs. a ~3.83M average), signaling a sharp market reaction despite the EPS beat.
• Analyst views are mixed — Jefferies cut its rating to "hold" and trimmed its target from $42 to $15 while others ranged from "strong-buy" to "sell"; the consensus is a Moderate Buy with an average price target of $28.17.

Summit Therapeutics (NASDAQ:SMMT - Get Free Report) issued its earnings results on Thursday. The company reported ($0.24) earnings per share for the quarter, topping analysts' consensus estimates of ($0.27) by $0.03, Zacks reports.

Summit Therapeutics Trading Down 24.9%

Shares of Summit Therapeutics stock traded down $5.35 on Friday, reaching $16.11. The stock had a trading volume of 18,095,313 shares, compared to its average volume of 3,831,624. Summit Therapeutics has a 1 year low of $13.83 and a 1 year high of $30.98. The company has a market cap of $12.50 billion, a P/E ratio of -11.11 and a beta of -1.25. The business's 50 day moving average is $18.43 and its two-hundred day moving average is $17.87.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Jefferies Financial Group lowered shares of Summit Therapeutics from a "buy" rating to a "hold" rating and cut their target price for the stock from $42.00 to $15.00 in a research report on Monday, March 16th. Piper Sandler cut their target price on shares of Summit Therapeutics from $17.00 to $16.00 and set a "neutral" rating for the company in a research report on Friday. Truist Financial upgraded shares of Summit Therapeutics to a "strong-buy" rating in a research report on Wednesday, March 25th. Stifel Nicolaus assumed coverage on shares of Summit Therapeutics in a research report on Wednesday, April 8th. They set a "buy" rating and a $45.00 target price for the company. Finally, Wall Street Zen upgraded shares of Summit Therapeutics from a "strong sell" rating to a "sell" rating in a research report on Saturday. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $28.17.

Institutional Investors Weigh In On Summit Therapeutics

Institutional investors and hedge funds have recently modified their holdings of the company. Raymond James Financial Inc. lifted its holdings in shares of Summit Therapeutics by 20.7% in the third quarter. Raymond James Financial Inc. now owns 14,108 shares of the company's stock worth $291,000 after buying an additional 2,416 shares in the last quarter. Two Sigma Securities LLC purchased a new stake in shares of Summit Therapeutics in the second quarter worth about $280,000. Virtus Investment Advisers LLC lifted its holdings in shares of Summit Therapeutics by 168.3% in the fourth quarter. Virtus Investment Advisers LLC now owns 15,141 shares of the company's stock worth $265,000 after buying an additional 9,497 shares in the last quarter. Oxford Asset Management LLP purchased a new stake in shares of Summit Therapeutics in the second quarter worth about $245,000. Finally, Jump Financial LLC purchased a new stake in shares of Summit Therapeutics in the second quarter worth about $244,000. 4.61% of the stock is owned by hedge funds and other institutional investors.

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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