Summit Therapeutics (NASDAQ:SMMT) Shares Gap Up - Still a Buy?

Key Points

• Summit Therapeutics shares opened at $19.58 after a previous close of $18.74, with the latest trading price at $19.16 and a volume of over 1.5 million shares.
• Analysts have mixed ratings for Summit Therapeutics, with one rating it as a Strong Buy, eleven as Buy, and four issuing Sell ratings; the average target price is $31.14.
• Insiders have significantly increased their stakes, with CEO Mahkam Zanganeh purchasing over 333,000 shares at an average price of $17.68, contributing to an overall insider ownership of 84.90%.

Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report)'s share price gapped up prior to trading on Wednesday . The stock had previously closed at $18.74, but opened at $19.58. Summit Therapeutics shares last traded at $19.16, with a volume of 1,536,349 shares trading hands.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. Wall Street Zen lowered Summit Therapeutics from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. JMP Securities restated a "market outperform" rating and set a $40.00 target price on shares of Summit Therapeutics in a report on Monday. Weiss Ratings restated a "sell (d-)" rating on shares of Summit Therapeutics in a report on Wednesday, October 8th. HC Wainwright reduced their price target on shares of Summit Therapeutics from $50.00 to $40.00 and set a "buy" rating on the stock in a research report on Tuesday. Finally, Citigroup lifted their price target on shares of Summit Therapeutics from $35.00 to $40.00 and gave the company a "buy" rating in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Summit Therapeutics presently has an average rating of "Moderate Buy" and a consensus target price of $31.14.

Summit Therapeutics Stock Up 1.0%

The business has a 50-day moving average price of $22.18 and a two-hundred day moving average price of $23.39. The firm has a market cap of $14.07 billion, a PE ratio of -15.27 and a beta of -1.13.

Summit Therapeutics (NASDAQ:SMMT - Get Free Report) last posted its quarterly earnings data on Monday, October 20th. The company reported ($0.31) earnings per share for the quarter, missing analysts' consensus estimates of ($0.14) by ($0.17). On average, equities research analysts predict that Summit Therapeutics PLC will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Mahkam Zanganeh bought 333,394 shares of the stock in a transaction that occurred on Wednesday, September 10th. The stock was purchased at an average price of $17.68 per share, for a total transaction of $5,894,405.92. Following the completion of the purchase, the chief executive officer owned 556,088,090 shares in the company, valued at approximately $9,831,637,431.20. This trade represents a 0.06% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Robert W. Duggan bought 333,394 shares of the stock in a transaction that occurred on Wednesday, September 10th. The shares were purchased at an average price of $17.68 per share, with a total value of $5,894,405.92. Following the purchase, 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 position. The disclosure for this purchase can be found here. In the last quarter, insiders have purchased 676,788 shares of company stock valued at $11,969,512. Insiders own 84.90% of the company's stock.

Hedge Funds Weigh In On Summit Therapeutics

Large investors have recently bought and sold shares of the stock. Ball & Co Wealth Management Inc. acquired a new position in Summit Therapeutics in the second quarter valued at $31,000. Crowley Wealth Management Inc. raised its holdings in shares of Summit Therapeutics by 66.7% in the third quarter. Crowley Wealth Management Inc. now owns 1,500 shares of the company's stock valued at $31,000 after buying an additional 600 shares during the last quarter. Golden State Wealth Management LLC raised its holdings in shares of Summit Therapeutics by 100.0% in the first quarter. Golden State Wealth Management LLC now owns 1,502 shares of the company's stock valued at $29,000 after buying an additional 751 shares during the last quarter. CWM LLC raised its holdings in shares of Summit Therapeutics by 3,455.3% in the first quarter. CWM LLC now owns 1,671 shares of the company's stock valued at $32,000 after buying an additional 1,624 shares during the last quarter. Finally, SBI Securities Co. Ltd. raised its holdings in shares of Summit Therapeutics by 34.1% in the second quarter. SBI Securities Co. Ltd. now owns 1,756 shares of the company's stock valued at $37,000 after buying an additional 447 shares during the last quarter. Institutional investors and hedge funds 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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