Verastem (NASDAQ:VSTM) Shares Up 8% After Analyst Upgrade

Verastem, Inc. (NASDAQ:VSTM)’s share price traded up 8% during mid-day trading on Thursday after BTIG Research raised their price target on the stock from $18.00 to $24.00. BTIG Research currently has a buy rating on the stock. Verastem traded as high as $8.30 and last traded at $8.3270. Approximately 4,269,684 shares traded hands during mid-day trading, an increase of 75% from the average session volume of 2,440,139 shares. The stock had previously closed at $7.71.

Several other equities research analysts have also commented on VSTM. Mizuho set a $13.00 price objective on shares of Verastem and gave the stock an “outperform” rating in a research note on Monday, August 10th. Weiss Ratings upgraded shares of Verastem from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, September 4th. Citigroup restated a “buy” rating on shares of Verastem in a report on Thursday, October 8th. Wall Street Zen raised shares of Verastem from a “sell” rating to a “hold” rating in a research note on Sunday, September 27th. Finally, Wolfe Research assumed coverage on shares of Verastem in a research note on Thursday, September 17th. They issued an “outperform” rating on the stock. Ten investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Verastem presently has an average rating of “Moderate Buy” and an average target price of $16.50.

Insider Activity at Verastem

In other news, CEO Dan Paterson sold 44,121 shares of the business’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $8.00, for a total value of $352,968.00. Following the completion of the transaction, the chief executive officer owned 652,712 shares in the company, valued at $5,221,696. The trade was a 6.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 48,044 shares of company stock valued at $381,484. 1.94% of the stock is currently owned by company insiders.

Trending Headlines about Verastem

Here are the key news stories impacting Verastem this week:

• Positive Sentiment: BTIG Research raised its price target on Verastem from $18 to $24 and assigned a “Buy” rating, implying substantial potential upside from recent trading levels. This upgrade reflects increased confidence in the company’s pipeline and clinical prospects.
• Positive Sentiment: Verastem reported encouraging results for VS-7375 in advanced KRAS G12D-mutated pancreatic, lung and colorectal cancers. The treatment produced a 50% confirmed overall response rate in second-line pancreatic ductal adenocarcinoma, including two complete responses in second-line-or-later disease. VS-7375 clinical data
• Positive Sentiment: The company raised approximately $250 million, strengthening its balance sheet ahead of planned Phase III development for VS-7375. The proceeds could reduce near-term funding risk and support regulatory and commercial preparation. Verastem $250 million offering
• Neutral Sentiment: Michael Bailey will become president and CEO on January 1, 2027, succeeding Daniel Paterson, who is retiring. The planned transition provides leadership continuity, although investors will monitor execution under the new CEO. CEO transition announcement
• Negative Sentiment: The financing involves roughly 30.9 million new shares priced at $8.00, plus pre-funded warrants, creating meaningful dilution for existing shareholders. The offering may weigh on the stock even as it improves Verastem’s ability to fund late-stage trials.

Hedge Funds Weigh In On Verastem

Several institutional investors have recently made changes to their positions in VSTM. AIGH Capital Management LLC purchased a new position in shares of Verastem in the first quarter worth approximately $10,600,000. Opaleye Management Inc. bought a new stake in Verastem during the second quarter valued at approximately $6,876,000. Armistice Capital LLC increased its holdings in Verastem by 68.7% during the fourth quarter. Armistice Capital LLC now owns 3,536,000 shares of the biopharmaceutical company’s stock valued at $27,298,000 after buying an additional 1,440,000 shares during the last quarter. Hennion & Walsh Asset Management Inc. increased its holdings in 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 buying an additional 347,872 shares during the last quarter. Finally, Ishara Investments LP purchased a new stake in Verastem during the fourth quarter valued at approximately $2,084,000. Institutional investors own 88.37% of the company’s stock.

Verastem Stock Up 11.6%

The company has a debt-to-equity ratio of 1.48, a current ratio of 2.25 and a quick ratio of 2.22. The firm has a market capitalization of $779.09 million, a P/E ratio of -3.24 and a beta of 0.39. The company’s 50-day simple moving average is $7.54 and its two-hundred day simple moving average is $5.91.

Verastem (NASDAQ:VSTM) last issued its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) earnings per share for the quarter, topping the consensus estimate of ($0.43) by $0.08. Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%. The business had revenue of $40.08 million for the quarter, compared to analysts’ expectations of $22.88 million. As a group, research analysts expect that Verastem, Inc. will post -1.55 earnings per share for the current year.

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.