Summit Therapeutics (NASDAQ:SMMT) Shares Gap Down Following Weak Earnings

Key Points

• Summit Therapeutics shares experienced a significant drop, opening at $27.06 after closing at $28.25, following the announcement of weak quarterly earnings with a loss of ($0.76) per share, far below the expected ($0.10).
• Despite recent poor performance, several analysts maintain a positive outlook on Summit Therapeutics, with target prices ranging from $12.00 to $40.00 and a consensus rating of "Moderate Buy."
• Institutional investors have increased their stakes in Summit Therapeutics, indicating continued interest, as only 4.61% of the stock is held by such investors.

Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report) shares gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $28.25, but opened at $27.06. Summit Therapeutics shares last traded at $27.40, with a volume of 985,195 shares traded.

The company reported ($0.76) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.66).

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on SMMT shares. TD Cowen raised Summit Therapeutics to a "strong-buy" rating in a research report on Thursday, May 8th. The Goldman Sachs Group boosted their target price on Summit Therapeutics from $37.00 to $41.00 and gave the company a "buy" rating in a research report on Friday, May 2nd. Jefferies Financial Group set a $44.00 price objective on Summit Therapeutics and gave the stock a "buy" rating in a research report on Friday, April 25th. UBS Group assumed coverage on Summit Therapeutics in a research report on Tuesday, July 1st. They set a "buy" rating and a $30.00 price objective on the stock. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Summit Therapeutics in a research report on Wednesday, April 23rd. Three investment analysts have rated the stock with a sell rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Summit Therapeutics currently has a consensus rating of "Moderate Buy" and an average price target of $35.00.

Hedge Funds Weigh In On Summit Therapeutics

Institutional investors and hedge funds have recently modified their holdings of the company. Wells Fargo & Company MN boosted its stake in Summit Therapeutics by 79.2% in the fourth quarter. Wells Fargo & Company MN now owns 95,265 shares of the company's stock valued at $1,700,000 after acquiring an additional 42,090 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Summit Therapeutics by 358.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 205,337 shares of the company's stock valued at $3,664,000 after acquiring an additional 160,592 shares in the last quarter. Bank of America Corp DE boosted its stake in Summit Therapeutics by 10.5% in the fourth quarter. Bank of America Corp DE now owns 431,568 shares of the company's stock valued at $7,701,000 after acquiring an additional 40,908 shares in the last quarter. BNP Paribas Financial Markets acquired a new position in Summit Therapeutics in the fourth quarter valued at $8,801,000. Finally, Janney Montgomery Scott LLC boosted its stake in Summit Therapeutics by 12.1% in the first quarter. Janney Montgomery Scott LLC now owns 17,610 shares of the company's stock valued at $340,000 after acquiring an additional 1,894 shares in the last quarter. Institutional investors and hedge funds own 4.61% of the company's stock.

Summit Therapeutics Price Performance

The company has a market cap of $19.83 billion, a price-to-earnings ratio of -26.43 and a beta of -1.06. The firm's 50 day simple moving average is $24.49 and its 200-day simple moving average is $22.75.

Summit Therapeutics Company Profile

Summit Therapeutics Inc, a biopharmaceutical company, focuses on discovery, development, and commercialization of patient, physician, caregiver, and societal friendly medicinal therapies in the United States, and the United Kingdom. The company's lead development candidate is Ivonescimab, a bispecific antibody for immunotherapy through blockade of PD-1 with the anti-angiogenesis; and anti-infectives portfolio includes SMT-738, a novel class of precision antibiotics for the treatment of multidrug resistant infections, which primarily includes carbapenem-resistant Enterobacteriaceae infections.