SMMT is pulling back after skyrocketing yesterday
The shares of Summit Therapeutics Inc (NASDAQ:SMMT) appear to be headed for a minor correction after yesterday's skyrocket. The biotech stock added 272% last session, after the company said its experimental lung cancer drug outperformed Keytruda, Merck's (MRK) big-name treatment, in a late-stage trial. At last check, SMMT was down 15.2% at $9.26.
Yesterday marked three-year highs for the Summit Therapeutics stock as it shot out of penny stock territory. On the short sell restricted (SSR) list today amid the volatility, the equity is up roughly 434% year over year.
Options traders are targeting the stock straight out of the gate. So far, SMMT has seen eight times its intraday average options volume, with the most activity at the July 6 call, which is also the top open interest (OI) position.
The two analysts covering SMMT both carry "strong buy" ratings, though the 12-month consensus price target of $7.50 is now a discount to current levels after the recent price action. It's also worth noting that short interest still represents 27.1% of the stock's available float, or over 10 days' worth of pent-up buying power.