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

Key Points

• Shares gapped down ~23%, opening at $16.02 after a $21.46 close and last trading around $15.84 on heavy volume.
• Analysts remain broadly positive with a MarketBeat average rating of "Moderate Buy" and an average price target of $29.15, including recent buy initiations and targets up to $45, though a few sell ratings exist.
• Fundamentals show a recent earnings miss (EPS -$0.29 vs. -$0.22 estimate) and a forecasted annual EPS around -1.31; the company’s lead asset, ridinilazole, has Fast Track and Qualified Infectious Disease Product designations.

Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $21.46, but opened at $16.02. Summit Therapeutics shares last traded at $15.8410, with a volume of 3,895,316 shares traded.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Citizens Jmp reissued a "market outperform" rating and issued a $40.00 target price on shares of Summit Therapeutics in a research note on Friday, January 30th. Stifel Nicolaus started coverage on Summit Therapeutics in a report on Wednesday, April 8th. They issued a "buy" rating and a $45.00 price objective for the company. Citigroup began coverage on Summit Therapeutics in a research report on Wednesday, April 8th. They set a "buy" rating on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Summit Therapeutics in a research report on Tuesday, April 21st. Finally, Truist Financial raised Summit Therapeutics to a "strong-buy" rating in a research note on Wednesday, March 25th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $29.15.

Summit Therapeutics Stock Down 23.0%

The firm's 50-day simple moving average is $18.43 and its 200-day simple moving average is $17.87. The firm has a market capitalization of $12.83 billion, a PE ratio of -11.41 and a beta of -1.36.

Summit Therapeutics (NASDAQ:SMMT - Get Free Report) last released its earnings results on Monday, February 23rd. The company reported ($0.29) earnings per share for the quarter, missing analysts' consensus estimates of ($0.22) by ($0.07). On average, equities research analysts forecast that Summit Therapeutics PLC will post -1.31 earnings per share for the current year.

Hedge Funds Weigh In On Summit Therapeutics

A number of hedge funds have recently modified their holdings of the company. Crowley Wealth Management Inc. boosted its holdings in shares of Summit Therapeutics by 66.7% during the third quarter. Crowley Wealth Management Inc. now owns 1,500 shares of the company's stock worth $31,000 after purchasing an additional 600 shares during the period. Kestra Advisory Services LLC bought a new position in Summit Therapeutics during the 4th quarter valued at approximately $28,000. Parallel Advisors LLC purchased a new stake in Summit Therapeutics in the 3rd quarter worth approximately $39,000. T. Rowe Price Investment Management Inc. lifted its holdings in Summit Therapeutics by 2,654.4% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,873 shares of the company's stock worth $33,000 after buying an additional 1,805 shares during the period. Finally, Truvestments Capital LLC grew its position in shares of Summit Therapeutics by 200.2% in the 4th quarter. Truvestments Capital LLC now owns 2,603 shares of the company's stock worth $46,000 after buying an additional 1,736 shares during the last quarter. Hedge funds and other institutional investors 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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