Summit Therapeutics (NASDAQ:SMMT) Stock Price Up 8.2% - Still a Buy?

Key Points

• Shares rose 8.2% to about $22.85 on Thursday, but the move occurred on light volume (~560,636 shares), roughly 79% below the stock's average daily trading volume.
• Analyst sentiment is mixed: the consensus is a "Moderate Buy" with a $31 average target, while brokers range from Jefferies' downgrade and $15 target to Citigroup's newly initiated Buy and HC Wainwright's $30 target.
• Summit has a market cap of $18.74 billion and reported negative EPS (missed last quarter at -$0.29); its lead asset, ridinilazole, is in clinical development and has Fast Track and QIDP designations.

Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report) rose 8.2% during trading on Thursday . The company traded as high as $22.90 and last traded at $22.8540. Approximately 560,636 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 2,621,353 shares. The stock had previously closed at $21.12.

Analysts Set New Price Targets

SMMT has been the subject of a number of recent analyst reports. Jefferies Financial Group downgraded Summit Therapeutics from a "buy" rating to a "hold" rating and dropped their price objective for the company from $42.00 to $15.00 in a report on Monday, March 16th. HC Wainwright lowered their price target on Summit Therapeutics from $40.00 to $30.00 and set a "buy" rating for the company in a report on Tuesday, February 24th. Citigroup initiated coverage on Summit Therapeutics in a report on Wednesday, April 8th. They issued a "buy" rating for the company. Barclays upgraded Summit Therapeutics from an "underweight" rating to an "equal weight" rating and increased their price target for the stock from $16.00 to $18.00 in a report on Wednesday, December 17th. Finally, Summit Redstone set a $18.00 price target on Summit Therapeutics in a report on Wednesday, December 17th. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $31.00.

Summit Therapeutics Price Performance

The company has a market capitalization of $18.74 billion, a price-to-earnings ratio of -16.48 and a beta of -1.36. The firm has a 50-day moving average price of $16.64 and a two-hundred day moving average price of $17.72.

Summit Therapeutics (NASDAQ:SMMT - Get Free Report) last posted its quarterly earnings data on Monday, February 23rd. The company reported ($0.29) earnings per share for the quarter, missing the consensus estimate of ($0.22) by ($0.07). On average, equities analysts predict that Summit Therapeutics PLC will post -0.3 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Hsbc Holdings PLC acquired a new position in shares of Summit Therapeutics during the fourth quarter worth about $1,723,000. T. Rowe Price Investment Management Inc. boosted its position in shares of Summit Therapeutics by 2,654.4% during the fourth 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. Invesco Ltd. boosted its position in shares of Summit Therapeutics by 8.3% during the fourth quarter. Invesco Ltd. now owns 461,301 shares of the company's stock worth $8,068,000 after buying an additional 35,226 shares during the period. Beacon Pointe Advisors LLC boosted its position in shares of Summit Therapeutics by 10.9% during the fourth quarter. Beacon Pointe Advisors LLC now owns 39,611 shares of the company's stock worth $693,000 after buying an additional 3,885 shares during the period. Finally, Virtus Investment Advisers LLC boosted its position in shares of Summit Therapeutics by 168.3% during the fourth quarter. Virtus Investment Advisers LLC now owns 15,141 shares of the company's stock worth $265,000 after buying an additional 9,497 shares during the period. 4.61% of the stock is owned by institutional investors and hedge funds.

About Summit Therapeutics

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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