Verastem (NASDAQ:VSTM) Shares Break Below 50 Day Moving Average – Time to Sell?

Shares of Verastem, Inc. (NASDAQ:VSTM) crossed below its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $8.48 and traded as low as $8.41. Verastem shares last traded at $8.44, with a volume of 2,086,552 shares changing hands.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Wolfe Research began coverage on Verastem in a research report on Thursday, September 17th. They set an “outperform” rating on the stock. Weiss Ratings downgraded Verastem from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, October 15th. Citigroup reiterated a “buy” rating on shares of Verastem in a research report on Thursday, October 8th. Wall Street Zen lowered Verastem from a “hold” rating to a “sell” rating in a research note on Saturday, November 7th. Finally, BTIG Research raised their target price on shares of Verastem from $18.00 to $24.00 and gave the stock a “buy” rating in a report on Thursday, October 15th. Eleven research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Verastem presently has an average rating of “Moderate Buy” and an average target price of $16.83.

Verastem Price Performance

The business’s 50-day simple moving average is $8.48 and its 200-day simple moving average is $6.29. The stock has a market cap of $764.33 million, a PE ratio of -4.12 and a beta of 0.45. The company has a quick ratio of 2.22, a current ratio of 1.93 and a debt-to-equity ratio of 11.19.

Verastem (NASDAQ:VSTM) last issued its quarterly earnings data on Thursday, November 5th. The biopharmaceutical company reported ($0.74) EPS for the quarter, missing the consensus estimate of ($0.47) by ($0.27). The firm had revenue of $24.01 million for the quarter, compared to the consensus estimate of $26.57 million. Verastem had a negative net margin of 178.38% and a negative return on equity of 359.49%. On average, research analysts expect that Verastem, Inc. will post -1.72 EPS for the current fiscal year.

Insider Transactions at Verastem

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 transaction, the chief executive officer 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 document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 48,041 shares of company stock worth $386,390. 1.94% of the stock is owned by insiders.

Institutional Investors Weigh In On Verastem

A number of large investors have recently made changes to their positions in the business. Bank of New York Mellon Corp bought a new position in shares of Verastem during the second quarter valued at approximately $706,000. Hennion & Walsh Asset Management Inc. boosted its holdings in Verastem by 157.2% in 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 acquiring an additional 347,872 shares in the last quarter. Opaleye Management Inc. bought a new stake in Verastem in the second quarter valued at $6,876,000. Exome Asset Management LLC boosted its holdings in Verastem by 58.5% in the first quarter. Exome Asset Management LLC now owns 636,700 shares of the biopharmaceutical company’s stock valued at $3,375,000 after acquiring an additional 234,957 shares in the last quarter. Finally, Seven Fleet Capital Management LP increased its position in Verastem by 715.1% during the 1st quarter. Seven Fleet Capital Management LP now owns 123,400 shares of the biopharmaceutical company’s stock valued at $654,000 after purchasing an additional 108,260 shares during the period. 88.37% of the stock is currently owned by institutional investors.

Verastem Company Profile

Verastem, Inc. is a biopharmaceutical company focused on developing and commercializing medicines for cancer. Its research has centered on signaling pathways involved in tumor growth, including the RAS/MAPK pathway. The company’s product, AVMAPKI FAKZYNJA CO-PACK, combines avutometinib and defactinib. The U.S. Food and Drug Administration approved the combination for certain adults with KRAS-mutated recurrent low-grade serous ovarian cancer who have received prior systemic therapy. Verastem is based in Needham, Massachusetts, and also develops investigational cancer therapies, including potential uses of avutometinib in combination with other medicines.