Verastem’s (VSTM) “Buy” Rating Reiterated at HC Wainwright

HC Wainwright restated their buy rating on shares of Verastem (NASDAQ:VSTM) in a report published on Monday morning, MarketBeat.com reports. They currently have a $18.00 price objective on the biopharmaceutical company’s stock.

Other equities research analysts have also issued research reports about the company. Guggenheim set a $12.00 price target on Verastem and gave the stock a “buy” rating in a research note on Friday, August 7th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Verastem in a research report on Monday, September 28th. BTIG Research reissued a “buy” rating and set a $18.00 price objective on shares of Verastem in a report on Friday, September 11th. Wall Street Zen upgraded Verastem from a “sell” rating to a “hold” rating in a research report on Sunday, September 27th. Finally, Wolfe Research initiated coverage on Verastem in a research note on Thursday, September 17th. They issued an “outperform” rating for the company. Nine equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $13.83.

Verastem Stock Performance

Verastem stock opened at $8.27 on Monday. The firm’s fifty day moving average price is $7.33 and its 200-day moving average price is $5.81. The company has a debt-to-equity ratio of 1.48, a quick ratio of 2.22 and a current ratio of 2.25. The stock has a market cap of $748.93 million, a P/E ratio of -3.11 and a beta of 0.39. Verastem has a fifty-two week low of $3.43 and a fifty-two week high of $10.82.

Verastem (NASDAQ:VSTM) last announced its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.43) by $0.08. The company had revenue of $40.08 million during the quarter, compared to analyst estimates of $22.88 million. Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%. On average, equities research analysts expect that Verastem will post -1.56 earnings per share for the current fiscal year.

Insider Transactions at Verastem

In other news, CEO Dan Paterson sold 44,121 shares of the firm’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $8.00, for a total transaction of $352,968.00. Following the transaction, the chief executive officer directly owned 652,712 shares of the company’s stock, valued at approximately $5,221,696. This trade represents a 6.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 48,044 shares of company stock worth $381,484 in the last ninety days. Corporate insiders own 1.94% of the company’s stock.

Institutional Investors Weigh In On Verastem

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Bank of New York Mellon Corp purchased a new position in Verastem in the 2nd quarter worth approximately $706,000. Hennion & Walsh Asset Management Inc. boosted its stake in shares of Verastem by 157.2% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 569,195 shares of the biopharmaceutical company’s stock valued at $2,174,000 after purchasing an additional 347,872 shares during the period. AIGH Capital Management LLC purchased a new stake in shares of Verastem during the first quarter valued at approximately $10,600,000. Opaleye Management Inc. purchased a new stake in shares of Verastem during the second quarter valued at approximately $6,876,000. Finally, Exome Asset Management LLC grew its holdings in shares of Verastem by 58.5% in the first quarter. Exome Asset Management LLC now owns 636,700 shares of the biopharmaceutical company’s stock worth $3,375,000 after purchasing an additional 234,957 shares during the last quarter. Institutional investors own 88.37% of the company’s stock.

About Verastem

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.