Summit Therapeutics (NASDAQ:SMMT) Shares Down 6.2% - Time to Sell?

Key Points

• Shares fell 6.2% to $24.74 on Wednesday with about 1.08 million shares traded, roughly 62% below the stock's average daily volume and down from a prior close of $26.38.
• Analyst coverage is mixed: MarketBeat shows a consensus of "Moderate Buy" with an average price target of $31, but ratings range from Strong Buy to Sell and recent notable moves include Jefferies cutting its target to $15 while Stifel initiated coverage at $45.
• Summit missed quarterly estimates (EPS -$0.29 vs. -$0.22 expected) and analysts project a full-year EPS of -1.31, though the company’s lead drug ridinilazole has Fast Track and QIDP designations.

Shares of Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report) were down 6.2% on Wednesday . The company traded as low as $24.94 and last traded at $24.7370. Approximately 1,077,004 shares traded hands during trading, a decline of 62% from the average daily volume of 2,820,486 shares. The stock had previously closed at $26.38.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Jefferies Financial Group cut Summit Therapeutics from a "buy" rating to a "hold" rating and lowered their target price for the company from $42.00 to $15.00 in a research note on Monday, March 16th. Stifel Nicolaus assumed coverage on Summit Therapeutics in a research note on Wednesday, April 8th. They issued a "buy" rating and a $45.00 target price for the company. Truist Financial raised Summit Therapeutics to a "strong-buy" rating in a research note on Wednesday, March 25th. HC Wainwright lowered their target price on Summit Therapeutics from $40.00 to $30.00 and set a "buy" rating for the company in a research note on Tuesday, February 24th. Finally, Piper Sandler set a $40.00 target price on Summit Therapeutics in a research note on Wednesday, January 14th. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $31.00.

Summit Therapeutics Price Performance

The business has a 50 day moving average of $17.48 and a 200 day moving average of $17.82. The firm has a market capitalization of $18.50 billion, a price-to-earnings ratio of -16.40 and a beta of -1.36.

Summit Therapeutics (NASDAQ:SMMT - Get Free Report) last announced its quarterly earnings data on Monday, February 23rd. The company reported ($0.29) EPS for the quarter, missing analysts' consensus estimates of ($0.22) by ($0.07). As a group, equities analysts predict that Summit Therapeutics PLC will post -1.31 EPS for the current year.

Institutional Investors Weigh In On Summit Therapeutics

A number of institutional investors have recently made changes to their positions in the stock. Baker BROS. Advisors LP grew its stake in shares of Summit Therapeutics by 7.9% during the fourth quarter. Baker BROS. Advisors LP now owns 36,391,063 shares of the company's stock worth $636,480,000 after purchasing an additional 2,668,089 shares during the period. Vanguard Group Inc. grew its stake in shares of Summit Therapeutics by 31.2% during the third quarter. Vanguard Group Inc. now owns 11,379,728 shares of the company's stock worth $235,105,000 after purchasing an additional 2,706,056 shares during the period. Price T Rowe Associates Inc. MD grew its stake in shares of Summit Therapeutics by 106.5% during 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 purchasing an additional 4,832,592 shares during the period. State Street Corp lifted its holdings in Summit Therapeutics by 4.3% during the fourth quarter. State Street Corp now owns 6,636,361 shares of the company's stock worth $116,070,000 after acquiring an additional 274,425 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in Summit Therapeutics by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 3,147,480 shares of the company's stock worth $55,063,000 after acquiring an additional 14,745 shares in 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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