Summit Therapeutics (NASDAQ:SMMT) Shares Gap Down - Here's Why

Key Points

• Summit Therapeutics' stock gapped down from $20.99 to $18.85 before trading, with the latest trade at $19.51 and a significant trading volume of 1,766,988 shares.
• Analysts have mixed opinions on the stock, with price targets ranging from $13.00 to $34.00, and an average rating of "Moderate Buy" with a target price of $31.64.
• CEO Robert W. Duggan significantly increased his stake in the company by purchasing 333,394 shares at around $17.68 per share, raising his total ownership to approximately $9.83 billion.

Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $20.99, but opened at $18.85. Summit Therapeutics shares last traded at $19.51, with a volume of 1,766,988 shares trading hands.

Analyst Ratings Changes

SMMT has been the subject of several analyst reports. Evercore ISI increased their price target on shares of Summit Therapeutics from $30.00 to $34.00 and gave the company an "outperform" rating in a research note on Tuesday, August 12th. Barclays initiated coverage on shares of Summit Therapeutics in a research note on Wednesday, September 17th. They set an "underweight" rating and a $13.00 target price for the company. Wall Street Zen cut shares of Summit Therapeutics from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Piper Sandler started coverage on shares of Summit Therapeutics in a research report on Monday, August 18th. They set a "neutral" rating and a $21.00 price objective for the company. Finally, UBS Group started coverage on shares of Summit Therapeutics in a research report on Tuesday, July 1st. They issued a "buy" rating and a $30.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $31.64.

Summit Therapeutics Trading Down 6.8%

The company's 50 day moving average is $22.48 and its 200 day moving average is $23.40. The stock has a market capitalization of $14.53 billion, a price-to-earnings ratio of -19.41 and a beta of -1.13.

Summit Therapeutics (NASDAQ:SMMT - Get Free Report) last posted its quarterly earnings data on Monday, August 11th. The company reported ($0.76) EPS for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.66). Analysts anticipate that Summit Therapeutics PLC will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Robert W. Duggan bought 333,394 shares of the stock in a transaction dated Wednesday, September 10th. The shares were acquired at an average price of $17.68 per share, with a total value of $5,894,405.92. Following the completion of the acquisition, the chief executive officer directly owned 556,088,090 shares in the company, valued at approximately $9,831,637,431.20. The trade was a 0.06% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Mahkam Zanganeh bought 333,394 shares of the stock in a transaction dated Wednesday, September 10th. The stock was purchased at an average cost of $17.68 per share, for a total transaction of $5,894,405.92. Following the acquisition, the chief executive officer owned 556,088,090 shares of the company's stock, valued at approximately $9,831,637,431.20. This represents a 0.06% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders acquired 676,788 shares of company stock worth $11,969,512. 84.90% of the stock is currently owned by company insiders.

Institutional Trading of Summit Therapeutics

A number of institutional investors have recently added to or reduced their stakes in SMMT. Exchange Traded Concepts LLC boosted its holdings in Summit Therapeutics by 11.4% during the first quarter. Exchange Traded Concepts LLC now owns 6,328 shares of the company's stock worth $122,000 after buying an additional 647 shares in the last quarter. Janney Montgomery Scott LLC increased its position in shares of Summit Therapeutics by 12.1% in the first quarter. Janney Montgomery Scott LLC now owns 17,610 shares of the company's stock worth $340,000 after acquiring an additional 1,894 shares in the last quarter. Golden State Wealth Management LLC grew its holdings 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 valued at $29,000 after purchasing an additional 751 shares in the last quarter. Lisanti Capital Growth LLC acquired a new stake in Summit Therapeutics during the 1st quarter valued at $1,039,000. Finally, Sovran Advisors LLC boosted its stake in Summit Therapeutics by 25.1% during the 1st quarter. Sovran Advisors LLC now owns 146,528 shares of the company's stock valued at $2,827,000 after acquiring an additional 29,354 shares during the last quarter. Hedge funds and other institutional investors own 4.61% of the company's stock.

About Summit Therapeutics

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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