Summit Therapeutics (NASDAQ:SMMT) Share Price Crosses Below 50-Day Moving Average - What's Next?

Key Points

• Summit Therapeutics shares fell 8.7% and traded below both their 50-day moving average of $15.51 and intraday lows of $13.54, signaling recent weakness in the stock.
• Wall Street sentiment is mixed: the stock currently has a consensus rating of “Hold” with an average price target of $26.97, though individual analysts range from bearish to bullish.
• Insiders have been buying heavily, including the CFO and CEO, with total insider purchases of 7.87 million shares worth about $103.6 million over the last 90 days.

Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report)'s share price passed below its fifty day moving average during trading on Thursday . The stock has a fifty day moving average of $15.51 and traded as low as $13.54. Summit Therapeutics shares last traded at $13.76, with a volume of 3,748,132 shares traded.

Analysts Set New Price Targets

A number of brokerages have issued reports on SMMT. Weiss Ratings restated a "sell (d-)" rating on shares of Summit Therapeutics in a research report on Tuesday, April 21st. HC Wainwright restated a "neutral" rating on shares of Summit Therapeutics in a research report on Wednesday. Wall Street Zen raised Summit Therapeutics from a "sell" rating to a "hold" rating in a research note on Saturday, July 4th. Stifel Nicolaus began coverage on Summit Therapeutics in a research report on Wednesday, April 8th. They set a "buy" rating and a $45.00 price target for the company. Finally, Sanford C. Bernstein started coverage on Summit Therapeutics in a research report on Thursday, May 21st. They issued an "underperform" rating and a $7.70 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $26.97.

Summit Therapeutics Trading Down 8.7%

The business has a 50 day simple moving average of $15.51 and a two-hundred day simple moving average of $16.82. The company has a market cap of $10.68 billion, a PE ratio of -8.60 and a beta of -1.26.

Summit Therapeutics (NASDAQ:SMMT - Get Free Report) last announced its quarterly earnings data on Friday, May 1st. The company reported ($0.24) EPS for the quarter, beating analysts' consensus estimates of ($0.27) by $0.03. On average, equities research analysts expect that Summit Therapeutics PLC will post -1.18 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Manmeet Singh Soni purchased 50,000 shares of the business's stock in a transaction on Thursday, June 4th. The shares were bought at an average price of $14.45 per share, with a total value of $722,500.00. Following the completion of 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 acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Mahkam Zanganeh purchased 3,810,000 shares of the firm's stock in a transaction on Friday, June 12th. The stock was bought at an average price of $13.12 per share, for a total transaction of $49,987,200.00. Following the acquisition, the chief executive officer owned 573,883,879 shares in the company, valued at $7,529,356,492.48. The trade was a 0.67% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 7,870,000 shares of company stock valued at $103,616,900 in the last 90 days. 83.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SMMT. Ball & Co Wealth Management Inc. acquired a new stake in Summit Therapeutics during the first quarter worth about $28,000. Kestra Advisory Services LLC acquired a new position in shares of Summit Therapeutics in the 4th quarter valued at about $28,000. T. Rowe Price Investment Management Inc. grew its holdings in shares of Summit Therapeutics by 2,654.4% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,873 shares of the company's stock worth $33,000 after purchasing an additional 1,805 shares during the period. Parallel Advisors LLC acquired a new stake in Summit Therapeutics during the 3rd quarter worth approximately $39,000. Finally, Truvestments Capital LLC increased its position in Summit Therapeutics by 200.2% during the 4th quarter. Truvestments Capital LLC now owns 2,603 shares of the company's stock worth $46,000 after purchasing an additional 1,736 shares in the last quarter. Institutional investors and hedge funds 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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