Summit Therapeutics (NASDAQ:SMMT) Trading Up 7.2% - Still a Buy?

Key Points

• Summit Therapeutics shares rose 7.2% to $13.33 in Friday trading, although volume was 66% below the average session level.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $24.25; targets range from $7.70 to $38.00.
• The company reported a quarterly loss of $0.28 per share, slightly worse than estimates, while insiders purchased 7.87 million shares worth approximately $103.6 million over the past three months.

Summit Therapeutics PLC (NASDAQ:SMMT - Get Free Report)'s stock price shot up 7.2% during mid-day trading on Friday . The stock traded as high as $13.34 and last traded at $13.33. 1,376,323 shares traded hands during trading, a decline of 66% from the average session volume of 4,063,526 shares. The stock had previously closed at $12.43.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Guggenheim decreased their price objective on Summit Therapeutics from $40.00 to $38.00 and set a "buy" rating on the stock in a research note on Friday, July 24th. Sanford C. Bernstein started coverage on shares of Summit Therapeutics in a report on Thursday, May 21st. They issued an "underperform" rating and a $7.70 price target on the stock. Piper Sandler cut their price objective on shares of Summit Therapeutics from $17.00 to $16.00 and set a "neutral" rating for the company in a research report on Friday, May 1st. Leerink Partners raised shares of Summit Therapeutics from an "underperform" rating to a "market perform" rating and boosted their price objective for the company from $12.00 to $13.00 in a research note on Wednesday, August 12th. Finally, HC Wainwright reaffirmed a "neutral" rating on shares of Summit Therapeutics in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $24.25.

Summit Therapeutics Stock Performance

The business has a 50 day simple moving average of $14.16 and a two-hundred day simple moving average of $16.20. The firm has a market capitalization of $10.49 billion, a P/E ratio of -11.74 and a beta of -1.23.

Summit Therapeutics (NASDAQ:SMMT - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.27) by ($0.01). On average, equities analysts anticipate that Summit Therapeutics PLC will post -1.2 earnings per share for the current fiscal year.

Insider Buying and Selling at Summit Therapeutics

In related news, CEO Robert W. Duggan purchased 3,810,000 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were purchased at an average price of $13.12 per share, with a total value of $49,987,200.00. Following the acquisition, the chief executive officer directly owned 573,883,879 shares of the company's stock, valued at approximately $7,529,356,492.48. This represents a 0.67% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Mahkam Zanganeh acquired 3,810,000 shares of the stock in a transaction dated Friday, June 12th. The shares were bought at an average price of $13.12 per share, for a total transaction of $49,987,200.00. Following the transaction, the chief executive officer owned 573,883,879 shares in the company, valued at approximately $7,529,356,492.48. This represents a 0.67% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 7,870,000 shares of company stock worth $103,616,900 over the last three months. 83.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SMMT. Baker BROS. Advisors LP boosted its holdings in Summit Therapeutics by 7.9% during the 4th quarter. Baker BROS. Advisors LP now owns 36,391,063 shares of the company's stock valued at $636,480,000 after acquiring an additional 2,668,089 shares during the period. TD Asset Management Inc lifted its position in Summit Therapeutics by 124.2% in the fourth quarter. TD Asset Management Inc now owns 1,205,272 shares of the company's stock valued at $21,080,000 after purchasing an additional 667,742 shares during the last quarter. Polymer Capital Management HK LTD boosted its stake in shares of Summit Therapeutics by 73.9% during the fourth quarter. Polymer Capital Management HK LTD now owns 1,421,155 shares of the company's stock valued at $24,856,000 after purchasing an additional 603,879 shares during the period. Y Intercept Hong Kong Ltd purchased a new stake in shares of Summit Therapeutics during the first quarter valued at approximately $2,269,000. Finally, Norges Bank bought a new position in shares of Summit Therapeutics in the fourth quarter worth approximately $24,030,000. 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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