Verastem, Inc. (NASDAQ:VSTM – Get Free Report) has been given a consensus recommendation of “Moderate Buy” by the thirteen analysts that are covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and eleven have assigned a buy rating to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $16.67.
A number of research analysts have commented on VSTM shares. Wolfe Research began coverage on shares of Verastem in a research note on Thursday, September 17th. They issued an “outperform” rating on the stock. Cantor Fitzgerald reiterated an “overweight” rating on shares of Verastem in a research note on Monday, September 28th. Guggenheim set a $12.00 target price on shares of Verastem and gave the stock a “buy” rating in a research note on Friday, August 7th. Weiss Ratings lowered Verastem from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday. Finally, Alliance Global Partners reissued a “buy” rating on shares of Verastem in a report on Thursday.
Check Out Our Latest Stock Report on Verastem
Insider Buying and Selling
In other Verastem news, CEO Dan Paterson sold 44,121 shares of the company’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $8.00, for a total transaction of $352,968.00. Following the completion of the sale, the chief executive officer directly owned 652,712 shares of the company’s stock, valued at $5,221,696. This represents a 6.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 48,044 shares of company stock worth $381,484. 1.94% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently modified their holdings of the stock. Bank of New York Mellon Corp purchased a new stake in shares of Verastem during the second quarter worth approximately $706,000. Hennion & Walsh Asset Management Inc. increased its stake in Verastem by 157.2% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 569,195 shares of the biopharmaceutical company’s stock valued at $2,174,000 after buying an additional 347,872 shares during the period. AIGH Capital Management LLC acquired a new position in Verastem in the 1st quarter valued at $10,600,000. Opaleye Management Inc. acquired a new position in Verastem in the 2nd quarter valued at $6,876,000. Finally, Exome Asset Management LLC increased its stake in Verastem by 58.5% in the 1st quarter. Exome Asset Management LLC now owns 636,700 shares of the biopharmaceutical company’s stock valued at $3,375,000 after buying an additional 234,957 shares during the period. 88.37% of the stock is currently owned by hedge funds and other institutional investors.
Verastem Stock Performance
Shares of Verastem stock opened at $8.65 on Friday. The firm’s fifty day simple moving average is $7.64 and its 200-day simple moving average is $5.96. The stock has a market capitalization of $783.34 million, a price-to-earnings ratio of -3.25 and a beta of 0.39. Verastem has a 12 month low of $3.43 and a 12 month high of $10.82. The company has a debt-to-equity ratio of 1.48, a current ratio of 2.25 and a quick ratio of 2.22.
Verastem (NASDAQ:VSTM – Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.43) by $0.08. The firm had revenue of $40.08 million during the quarter, compared to the consensus estimate of $22.88 million. Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%. As a group, equities analysts forecast that Verastem will post -1.55 earnings per share for the current year.
Trending Headlines about Verastem
Here are the key news stories impacting Verastem this week:
- Positive Sentiment: New clinical updates showed encouraging responses for VS-7375 across pancreatic, lung and colorectal cancers. The results support Verastem’s plans to advance the drug toward Phase III trials and strengthen the potential value of its oncology pipeline. Verastem investigational drug clinical update
- Positive Sentiment: Analysts raised their estimates substantially. BTIG lifted its price target from $18 to $24 and maintained a “buy” rating, while Mizuho raised its target from $13 to $14 and assigned an “outperform” rating. The analyst actions imply considerable upside from the recent trading level. Mizuho raises Verastem price target
- Positive Sentiment: The reported analyst consensus price target is $16.50, suggesting Wall Street expects further appreciation if the clinical program continues to progress. Verastem consensus price target
- Positive Sentiment: Management secured substantial oncology financing to fund development of VS-7375 and its anticipated Phase III program. The additional capital may reduce near-term funding concerns and support execution. Verastem oncology financing transaction
- Neutral Sentiment: Despite the positive data, Verastem remains a clinical-stage biotechnology company. Its valuation depends heavily on future trial results, regulatory progress and the eventual commercial potential of VS-7375.
- Negative Sentiment: The financing involves a large share offering, reported at approximately $234 million to $250 million. While it strengthens Verastem’s balance sheet, issuing additional shares can dilute existing shareholders and may limit the stock’s near-term gains. Verastem prices financing
Verastem Company Profile
Verastem Oncology (NASDAQ:VSTM) is a biopharmaceutical company focused on developing and commercializing targeted therapies for cancers driven by abnormalities in the RAS/MAPK signaling pathway. The company’s research is aimed at addressing cancers with limited treatment options, including ovarian cancer and other solid tumors.
Verastem’s lead product, avutometinib, is a treatment targeting the RAF/MEK signaling pathway and is marketed in the United States under the brand name Avmapki for certain patients with recurrent low-grade serous ovarian cancer.
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