Summit Therapeutics plc (SMMT) Stock: A Biotech Stock That’s Seeing Strong Gains

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Summit Therapeutics plc (SMMT) is headed up in the market in today’s trading session. The stock, focused in the biotechnology industry, is currently priced at $1.79 after a move up of 5.29% so far in today’s session. As it relates to biotech companies, there are quite a few aspects that have the ability to cause gains in the market. One of the most common is news. Here are the most recent stories associated with SMMT:

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Oct-22-19 11:02AM Top Ranked Momentum Stocks to Buy for October 22nd
08:55AM Can the Rally in Summit Therapeutics Shares Continue?
Oct-16-19 07:00AM Summit Therapeutics to Present at the 2019 BIO Investor Forum
Oct-11-19 07:01AM Directorate change
07:00AM Half-year report

However, when making a decision to invest, prospective investors should look at much more than just news, this is especially the case in the generally speculative biotech space. Here’s what’s going on with Summit Therapeutics plc.

Recent Movement From SMMT

While a gain in a single session, like the gain that we’re seeing from Summit Therapeutics plc may make some investors happy, a single session move alone should not be the basis of a decision to, or not to, buy a company’s stock. It is always smart to look at trends experienced by the stock beyond a single trading day. As it relates to SMMT, below are the movements that investors have seen:

  • Past 5 Sessions – Throughout the last 7 days, SMMT has seen a price change amounting to 8.48%.
  • Monthly – The performance from Summit Therapeutics plc in the last 30 days comes to 0.00%.
  • Past 3 Months – Throughout the past 3 months, the company has generated a return that works out to 35.61%
  • Past Six Months – Throughout the last 6 months, we’ve seen a performance that works out to 11.18% from the company.
  • This Year So Far – Since the close of last year SMMT has generated a return on investment of 55.65%.
  • Full Year – Lastly, throughout the past full year, we have seen a change in the amount of -2.19% out of SMMT. In this period, the stock has traded at a high of -27.24% and a low of 62.73%.

Ratios Of Note

Looking at various key ratios associated with a company can give prospective traders a look of just how risky and/or rewarding a pick may be. Here are a few of the key ratios to think about when looking at SMMT.

Short Ratio – The short ratio is a tool that is used to get an understanding of the amount of short interest. As the ratio goes higher, it means that more investors have a belief that the stock is headed for declines. Across the sector, biotech stocks tend to carry a higher short ratio. However, we also see quite a few short squeezes in the space. Nonetheless, as it relates to Summit Therapeutics plc, it’s short ratio comes to 12.93.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Basically, they measure If a company is able to cover its debts when they mature with only current assets or quick assets. In the biotech industry, many companies are heavily reliant on continued support from investors, these ratios can be damning. Nonetheless, several gems in the biotechnology industry do have positive current and quick ratios. In terms of SMMT, the quick and current ratios come to 0 and 0 respectively.  

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

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. Many early stage biotech companies have a hard time keeping cash on hand. So, if you’re looking into a biotech stock, this is a very important ratio to consider. In the case of SMMT, the cash to share value ratio works out to 0.

How Analysts Feel About Summit Therapeutics plc

Although it’s rarely a good idea to blindly follow the opinions of analysts, it is a smart idea to consider their analysis to validate your own when it comes to making an investment decision in the biotechnology industry. Below you’ll find the recent moves that we’ve seen from analysts when it comes 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

What Institutions And Insiders Think Of Summit Therapeutics plc

An interesting fact I’ve come to understand in my brief period here is that good investors tend to follow big money investors. In other words, investors that are trying to keep their investments relatively safe will keep an eye on investments made by institutional investors and those on the inside. With that said, is big money interested when it comes to SMMT? Here’s the information:

Institutions own 9.00% 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 48.71% percent of SMMT shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 32.10M shares of Summit Therapeutics plc outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, SMMT has a float of 12.07M.

I also like to follow the short percent. After all, when a high portion of the float is sold short, the overall feeling among investors is that the company is going to fall. As far as SMMT, the percentage of the float that is sold short comes to a total of 4.11%. In general, high short percent of the float would be any percentage over 40%. Nonetheless, I have seen that anything over 26% is generally a a play that could prove to be very risky.

Financial Results And Expectations

What have ween seen from SMMT in terms of financial results?Here’s the data:

  • Analyst Expectations – At the moment, Wall St. analysts expect that SMMT will report EPS in the amount of -1.63, with -0.40 to be reported in the earnings report for the current quarter. Although this is not based on earnings, because we are talking on the topic of Wall Street analysts, Summit Therapeutics plc is presently graded as a 2.20 on a scale from 1 to 5 on which 1 is the poorest possible Wall St. analyst grade and 5 is the best possible rating.
  • 5-Year Sales – Throughout the last half decade, Summit Therapeutics plc has reported a movement in sales volume that comes to a total of 0. Earnings over the period have generated movement in the amount of 0.
  • Quarter Over Quarter – when it comes to quarter over quarter data, or Q/Q data as it is often referred to as in today’s society, Summit Therapeutics plc has created a change in earnings that amounts to 0. Summit Therapeutics plc has also experienced movement in regard to sales volume that amounts to -29.60%.

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