Summit Therapeutics plc (SMMT) Stock: Here’s Why It’s Climbing

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Summit Therapeutics plc (SMMT) is gaining in the market in today’s trading session. The company, one that is focused on the biotech industry, is presently priced at $2.10 after climbing 6.59% so far today. In terms of biotechnology companies, there are quite a few factors that have the potential to generate gains in the market. News is one of the most common reasons for movement. Here are the recent stories surrounding SMMT:

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Mar-14-19 07:00AM Summit Highlights Use of Discuva Platform in Identifying New Mechanism Antibiotics against Neisseria Gonorrhoeae and ESKAPE Pathogens at Novel Antimicrobials and AMR Diagnostics 2019 Conference
Feb-27-19 10:00AM Four Healthcare Stocks Getting A Boost On Wednesday
Feb-25-19 07:00AM Summits SMT-571 Potent Against Over 200 Clinical Isolates of Neisseria Gonorrhoeae, Including Numerous Multi- and Extensively-Drug Resistant Strains, in Published Preclinical Data
Feb-19-19 08:20AM New Research Coverage Highlights Global Payments, Tableau Software, Summit Therapeutics, Utah Medical Products, Apollo Commercial Real Estate Finance, and Urstadt Biddle Properties Consolidated Revenues, Company Growth, and Expectations for 2019
Feb-13-19 07:00AM Summit Doses First Patient in Phase 3 Clinical Trials of Precision Antibiotic Ridinilazole for C. Difficile Infection

Nonetheless, when making a decision with regard to investing, prospective investors should look into far more than just news, especially in the highly speculative biotech space. Here’s what’s happening with Summit Therapeutics plc.

What We’ve Seen From SMMT

While a move up on a single session, like the move that we’re seeing from Summit Therapeutics plc may lead to excitement in some investors, a single session gain alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It’s generally a good idea to take a look at trends experienced by the stock further out than a single trading day. As it relates to SMMT, below are the returns on investment that investors have experienced:

  • Past 5 Sessions – Over the past week, SMMT has generated a price change in the amount of -10.04%.
  • Past 30 Days – The ROI from Summit Therapeutics plc in the last 30 days works out to 43.80%.
  • Past Quarter – Throughout the past quarter, the stock has produced a return of 41.72%
  • Bi-Annually – In the past 6 months, investors have seen a change of -10.45% from the company.
  • Year To Date – Since the the last trading session of last year SMMT has generated a return on investment of 71.31%.
  • Full Year – Lastly, throughout the last year, investors have seen movement amounting to -85.07% from SMMT. Over this period, the stock has sold at a high of -85.30% and a low of 90.91%.

Rations That Traders Should Think About

Digging into various key ratios having to do with a stock can give traders an understanding of how dangerous and/or rewarding a an investment option might be. Here are some of the key ratios to consider when looking at SMMT.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the stock is headed for declines. Across the sector, biotech stocks tend to carry a higher short ratio. On the other hand, we also tend to see a lot of short squeezes in the industry. Nonetheless, in relation to Summit Therapeutics plc, the stock’s short ratio amounts to 6.66.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Essentially, they measure If a company is able to cover its debts when they come due using current assets or quick assets. Because many biotech several companies are heavily reliant on the continuation of investor support, the current and quick ratios can be upsetting. Nonetheless, several better companies in the biotech industry do have great current and quick ratios. As far as SMMT, the quick and current ratios come to 0 and 0 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets currently owned by the company to the share price. In this particular case, the book to share value ratio equates to 2.26.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the value of shares. Many clinical stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotech industry, this is a very important ratio to consider. In this case, the cash to share value works out to 0.

What Analysts Think About Summit Therapeutics plc

While it’s rarely a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to use their analysis when validating your own due diligence before making an investment decision in the biotechnology space. Below you’ll find|Here are} the recent moves that we’ve seen from analysts as it relates to SMMT.

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Jun-28-18 Downgrade Janney Buy → Neutral
May-02-18 Initiated Janney Buy
Apr-12-18 Reiterated Needham Buy $30 → $27
Feb-13-18 Initiated BTIG Research Buy $33
Jan-04-18 Initiated SunTrust Buy $24

Is Big Money Interested In Summit Therapeutics plc

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in SMMT, here’s what we’re seeing:

Institutions own 17.57% of the company. Institutional interest has moved by 0 over the past three months. When it comes to insiders, those who are close to the company currently own 94.97% percent of SMMT shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Float Information

Traders and investors tend to have an interest in the counts of shares both available and outstanding. With respect to Summit Therapeutics plc, currently there are 82.13M with a float of 5.71M. These numbers mean that of the total of 82.13M shares of SMMT currently in existence today, 5.71M are able to trade hands on the market.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to SMMT, the short percent of the float is 8.63%.

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.52. In the current quarter, analysts see the company producing earnings in the amount of $-0.24. Over the last 5 years, SMMT has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 0 and revenue has seen movement of 6.10%.

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