Verastem (NASDAQ:VSTM) Shares Up 19.3% – Should You Buy?

Verastem, Inc. (NASDAQ:VSTM) shot up 19.3% during mid-day trading on Wednesday . The stock traded as high as $7.41 and last traded at $8.21. 859,671 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 1,278,016 shares. The stock had previously closed at $6.88.

Analyst Ratings Changes

A number of research firms have commented on VSTM. Royal Bank Of Canada set a $13.00 price target on Verastem and gave the company an “outperform” rating in a research report on Monday, October 20th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Verastem in a report on Wednesday, October 8th. Zacks Research downgraded shares of Verastem from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 18th. Guggenheim restated a “buy” rating on shares of Verastem in a report on Tuesday, December 30th. Finally, HC Wainwright reaffirmed a “buy” rating and issued a $14.00 price objective on shares of Verastem in a research note on Tuesday, October 21st. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $14.29.

Verastem Trading Up 7.2%

The company has a quick ratio of 2.55, a current ratio of 2.58 and a debt-to-equity ratio of 2.06. The company has a market capitalization of $492.44 million, a P/E ratio of -1.83 and a beta of 0.44. The firm’s 50-day moving average price is $8.86 and its 200 day moving average price is $7.99.

Verastem (NASDAQ:VSTM) last released its quarterly earnings results on Tuesday, November 4th. The biopharmaceutical company reported ($1.35) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.51) by ($0.84). The business had revenue of $11.24 million during the quarter, compared to analyst estimates of $5.76 million. As a group, equities research analysts predict that Verastem, Inc. will post -3.02 earnings per share for the current year.

Insider Activity at Verastem

In other Verastem news, Director Michael Kauffman sold 8,550 shares of the firm’s stock in a transaction on Friday, November 21st. The stock was sold at an average price of $10.00, for a total transaction of $85,500.00. Following the transaction, the director directly owned 8,666 shares in the company, valued at approximately $86,660. This trade represents a 49.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Paul A. Bunn sold 8,333 shares of Verastem stock in a transaction on Thursday, October 9th. The stock was sold at an average price of $9.06, for a total transaction of $75,496.98. Following the transaction, the director directly owned 8,333 shares in the company, valued at $75,496.98. This represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 45,780 shares of company stock valued at $453,208 over the last 90 days. Insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. AQR Capital Management LLC grew its position in Verastem by 78.2% in the 1st quarter. AQR Capital Management LLC now owns 62,603 shares of the biopharmaceutical company’s stock worth $377,000 after purchasing an additional 27,477 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Verastem by 236.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 756,402 shares of the biopharmaceutical company’s stock worth $4,561,000 after buying an additional 531,873 shares during the last quarter. Octagon Capital Advisors LP bought a new position in shares of Verastem in the first quarter valued at approximately $10,372,000. Rhumbline Advisers increased its position in shares of Verastem by 32.8% during the first quarter. Rhumbline Advisers now owns 49,959 shares of the biopharmaceutical company’s stock valued at $301,000 after acquiring an additional 12,330 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new stake in Verastem during the second quarter worth $643,000. 88.37% of the stock is owned by institutional investors.

About Verastem

Verastem Oncology, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of small molecule therapies that target cancer stemness and resistance pathways. Established in 2010 and headquartered in Needham, Massachusetts, Verastem Oncology applies a precision-medicine approach to identify key signaling nodes responsible for tumor growth and relapse, with an emphasis on hematologic malignancies and solid tumors. The company’s research platform integrates insights into complex signaling networks to advance novel compounds from early discovery through clinical proof of concept.

The company’s lead marketed product is COPIKTRA (duvelisib), an oral inhibitor of PI3K-delta and PI3K-gamma, which received U.S.