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)'s stock price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. 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

SMMT has been the topic of several research reports. UBS Group initiated coverage on Summit Therapeutics in a research report on Tuesday, July 1st. They issued a "buy" rating and a $30.00 target price on the stock. Cantor Fitzgerald reiterated an "overweight" rating on shares of Summit Therapeutics in a research report on Wednesday, April 23rd. JMP Securities reissued a "market outperform" rating and issued a $40.00 target price on shares of Summit Therapeutics in a research report on Monday, June 2nd. Leerink Partners assumed coverage on shares of Summit Therapeutics in a research report on Wednesday, June 11th. They set an "underperform" rating and a $12.00 price target on the stock. Finally, Evercore ISI raised their price target on shares of Summit Therapeutics from $30.00 to $34.00 and gave the stock an "outperform" rating in a research report on Tuesday. Two analysts have rated the stock with a sell rating, one has assigned a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, Summit Therapeutics has an average rating of "Moderate Buy" and an average price target of $35.00.

Hedge Funds Weigh In On Summit Therapeutics

Institutional investors have recently added to or reduced their stakes in the stock. Ball & Co Wealth Management Inc. bought a new stake in shares of Summit Therapeutics during the second quarter worth $31,000. Golden State Wealth Management LLC grew its position in Summit Therapeutics by 100.0% during the 1st quarter. Golden State Wealth Management LLC now owns 1,502 shares of the company's stock worth $29,000 after acquiring an additional 751 shares during the last quarter. CWM LLC increased its holdings in Summit Therapeutics by 3,455.3% in the 1st quarter. CWM LLC now owns 1,671 shares of the company's stock worth $32,000 after purchasing an additional 1,624 shares in the last quarter. SBI Securities Co. Ltd. increased its holdings in Summit Therapeutics by 34.1% in the 2nd quarter. SBI Securities Co. Ltd. now owns 1,756 shares of the company's stock worth $37,000 after purchasing an additional 447 shares in the last quarter. Finally, AlphaQuest LLC bought a new position in Summit Therapeutics in the first quarter valued at about $49,000. 4.61% of the stock is currently owned by institutional investors and hedge funds.

Summit Therapeutics Stock Down 12.0%

The stock has a 50 day moving average price of $23.98 and a 200 day moving average price of $22.66. The stock has a market capitalization of $18.46 billion, a price-to-earnings ratio of -73.24 and a beta of -1.06.

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.

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