Summit Therapeutics (NASDAQ:SMMT) Trading 8.4% Higher – Should You Buy?

Shares of Summit Therapeutics PLC (NASDAQ:SMMT) were up 8.4% during trading on Thursday . The stock traded as high as $15.40 and last traded at $15.5930. Approximately 615,198 shares changed hands during trading, a decline of 85% from the average session volume of 3,990,795 shares. The stock had previously closed at $14.38.

Analyst Ratings Changes

SMMT has been the subject of several research analyst reports. KeyCorp reissued an “overweight” rating on shares of Summit Therapeutics in a report on Monday, June 1st. Wall Street Zen downgraded Summit Therapeutics from a “hold” rating to a “sell” rating in a report on Monday, May 18th. Citigroup initiated coverage on Summit Therapeutics in a research report on Wednesday, April 8th. They issued a “buy” rating for the company. HC Wainwright downgraded Summit Therapeutics from a “buy” rating to a “neutral” rating in a report on Friday, May 22nd. Finally, Jefferies Financial Group lowered Summit Therapeutics from a “buy” rating to a “hold” rating and dropped their price target for the company from $42.00 to $15.00 in a research report on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Summit Therapeutics presently has a consensus rating of “Hold” and an average target price of $26.97.

Summit Therapeutics Trading Up 5.9%

The stock’s 50-day moving average price is $16.81 and its 200-day moving average price is $17.00. The company has a market capitalization of $11.82 billion, a P/E ratio of -9.53 and a beta of -1.26.

Summit Therapeutics (NASDAQ:SMMT) last announced its quarterly earnings data on Friday, May 1st. The company reported ($0.24) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.27) by $0.03. Sell-side analysts expect that Summit Therapeutics PLC will post -1.18 earnings per share for the current fiscal year.

Insider Transactions at Summit Therapeutics

In related news, CFO Manmeet Singh Soni acquired 50,000 shares of Summit Therapeutics stock in a transaction that occurred on Thursday, June 4th. The stock was acquired at an average price of $14.45 per share, for a total transaction of $722,500.00. Following the transaction, the chief financial officer directly owned 3,123,603 shares of the company’s stock, valued at $45,136,063.35. This trade represents a 1.63% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Robert W. Duggan acquired 3,810,000 shares of Summit Therapeutics stock in a transaction that occurred on Friday, June 12th. The shares were bought at an average price of $13.12 per share, with a total value of $49,987,200.00. Following the transaction, the chief executive officer directly owned 573,883,879 shares in the company, valued at approximately $7,529,356,492.48. This trade represents a 0.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have purchased 7,870,000 shares of company stock worth $103,616,900. 83.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Summit Therapeutics

Several large investors have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD lifted its stake in Summit Therapeutics by 106.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,371,415 shares of the company’s stock valued at $163,907,000 after buying an additional 4,832,592 shares during the last quarter. Baker BROS. Advisors LP increased its holdings in shares of Summit Therapeutics by 7.9% in the 4th quarter. Baker BROS. Advisors LP now owns 36,391,063 shares of the company’s stock worth $636,480,000 after acquiring an additional 2,668,089 shares during the period. Norges Bank bought a new stake in Summit Therapeutics in the 4th quarter valued at about $24,030,000. TD Asset Management Inc boosted its stake in Summit Therapeutics by 124.2% during the 4th 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 period. Finally, Polymer Capital Management HK LTD grew its position in Summit Therapeutics by 73.9% in the 4th quarter. Polymer Capital Management HK LTD now owns 1,421,155 shares of the company’s stock worth $24,856,000 after purchasing an additional 603,879 shares during the last quarter. 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.