Is Summit Therapeutics Inc. (SMMT) A Good Investment?

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Summit Therapeutics Inc. (NASDAQ:SMMT) finished Thursday with an addition of $0.48 to close at $5.31, an upside of 9.94 percent. An average of 6,745,140 shares of common stock have been traded in the last five days. There was a gain of $1.38 in the past week, and it reached a new high 10 times over the past 12 months. The last 20 days have seen an average of 26,079,240 shares traded, while the 50-day average volume stands at 10,535,850.

SMMT stock has increased by 496.63% in the last month. The company shares reached their 1-month lowest point of $0.66 on 12/02/22. With the stock rallying to its 52-week high on 12/29/22, shares of the company touched a low of $0.66 and a high of $5.40 in 52 weeks. It has reached a new high 8 times so far this year and achieved 97.40% or $2.62 in price. In spite of this, the price is down -1.67% from the 52-week high.


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Valuation Metrics

Summit Therapeutics Inc. (SMMT) stock’s beta is -0.83. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1118.55, the price-to-book (PB) ratio at 5.90.

Financial Health

The quick ratio of Summit Therapeutics Inc. for the three months ended September 29 was 8.20, and the current ratio was 8.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending September 29. Summit Therapeutics Inc.’s EBITDA margin for the year ending September 29 is -8098.02%. Its gross profit as reported stood at $88.0 million compared to revenue of $1.81 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Summit Therapeutics Inc.’s return on assets was -72.10%.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$21.39 million in the quarter, while revenues of -$16.77 million were shrunk -14.17%. The analyst consensus anticipated Summit Therapeutics Inc.’s latest quarter earnings to come in at -$0.29 per share, but it turned out to be -$1, a -244.80% surprise. For the quarter, EBITDA amounted to -$16.23 million. Shareholders own equity worth $201.32 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Summit Therapeutics Inc. (SMMT) price momentum. RSI 9-day as of the close on 29 December was 74.53%, suggesting the stock is Overbought, with historical volatility in this time frame at 162.39%.

As of today, SMMT’s price is $4.33 +35.11% or $1.38 from its 5-day moving average. SMMT is currently trading +563.75% higher than its 20-day SMA and +431.00% higher than its 100-day SMA. However, the stock’s current price level is +328.23% above the SMA50 and +91.70% above the SMA200.

The stochastic %K and %D were 77.37% and 67.65%, respectively, and the average true range (ATR) was 0.83. With the 14-day stochastic at 91.95% and the average true range at 0.72, the RSI (14) stands at 72.36%. The stock has reached 0.58 on the 9-day MACD Oscillator while the 14-day reading was at 0.80.

Analyst Ratings

Janney downgraded Summit Therapeutics Inc. (NASDAQ: SMMT) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Summit Therapeutics Inc. (SMMT) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SMMT, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 0 others rate it as a “buy”.

What is SMMT’s price target for the next 12 months?

Analysts predict a range of price targets between $4.00 and $4.00, with a median target of $4.00. Taking a look at these predictions, the average price target given by analysts for Summit Therapeutics Inc. (SMMT) stock is $4.00.

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