Summit Therapeutics (NASDAQ:SMMT) Shares Gap Down – Should You Sell?

Summit Therapeutics PLC (NASDAQ:SMMT) gapped down before the market opened on Wednesday . The stock had previously closed at $14.29, but opened at $13.12. Summit Therapeutics shares last traded at $13.7650, with a volume of 667,324 shares.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on SMMT shares. Wall Street Zen lowered Summit Therapeutics from a “hold” rating to a “sell” rating in a report on Monday, May 18th. Truist Financial upgraded Summit Therapeutics to a “strong-buy” rating in a report on Wednesday, March 25th. Weiss Ratings restated a “sell (d-)” rating on shares of Summit Therapeutics in a report on Tuesday, April 21st. HC Wainwright lowered shares of Summit Therapeutics from a “buy” rating to a “neutral” rating in a report on Friday, May 22nd. Finally, Citigroup began coverage on shares of Summit Therapeutics in a report on Wednesday, April 8th. They issued a “buy” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Summit Therapeutics presently has an average rating of “Hold” and an average price target of $26.05.

Summit Therapeutics Trading Down 10.6%

The stock has a market capitalization of $9.92 billion, a PE ratio of -8.00 and a beta of -1.32. The firm’s fifty day moving average is $18.85 and its 200-day moving average is $17.42.

Summit Therapeutics (NASDAQ:SMMT) last released its earnings results on Friday, May 1st. The company reported ($0.24) earnings per share for the quarter, beating the consensus estimate of ($0.27) by $0.03. As a group, equities analysts predict that Summit Therapeutics PLC will post -1.18 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Robert W. Duggan acquired 100,000 shares of Summit Therapeutics stock in a transaction dated Thursday, June 4th. The shares were acquired at an average cost of $14.60 per share, for a total transaction of $1,460,000.00. Following the completion of the purchase, the chief executive officer owned 25,824,474 shares in the company, valued at approximately $377,037,320.40. The trade was a 0.39% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Manmeet Singh Soni acquired 50,000 shares of Summit Therapeutics stock in a transaction dated Thursday, June 4th. The stock was bought at an average price of $14.45 per share, for a total transaction of $722,500.00. Following the completion of the purchase, the chief financial officer owned 3,123,603 shares of the company’s stock, valued at approximately $45,136,063.35. This represents a 1.63% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 250,000 shares of company stock worth $3,642,500 over the last three months. Company insiders own 83.50% of the company’s stock.

Institutional Investors Weigh In On Summit Therapeutics

Several institutional investors have recently added to or reduced their stakes in SMMT. Price T Rowe Associates Inc. MD increased 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 purchasing an additional 4,832,592 shares during the last quarter. Vanguard Group Inc. increased its stake in Summit Therapeutics by 31.2% in the third quarter. Vanguard Group Inc. now owns 11,379,728 shares of the company’s stock valued at $235,105,000 after purchasing an additional 2,706,056 shares during the last quarter. Baker BROS. Advisors LP increased its stake in Summit Therapeutics by 7.9% in the fourth quarter. Baker BROS. Advisors LP now owns 36,391,063 shares of the company’s stock valued at $636,480,000 after purchasing an additional 2,668,089 shares during the last quarter. Norges Bank purchased a new position in Summit Therapeutics in the fourth quarter valued at approximately $24,030,000. Finally, TD Asset Management Inc increased its stake 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. Hedge funds and other institutional investors own 4.61% of the company’s stock.

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.