Verastem (NASDAQ:VSTM) Shares Up 4.3% – Here’s Why

Verastem, Inc. (NASDAQ:VSTM)’s share price was up 4.3% during mid-day trading on Wednesday. The company traded as high as $8.20 and last traded at $8.0850. 314,213 shares traded hands during trading, a decline of 86% from the average session volume of 2,231,941 shares. The stock had previously closed at $7.75.

Analyst Ratings Changes

Several brokerages have issued reports on VSTM. Weiss Ratings upgraded Verastem from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, September 4th. Wolfe Research started coverage on shares of Verastem in a report on Thursday, September 17th. They issued an “outperform” rating for the company. BTIG Research reiterated a “buy” rating and set a $18.00 price target on shares of Verastem in a research note on Monday. Jefferies Financial Group cut their price objective on Verastem from $15.00 to $8.00 and set a “buy” rating on the stock in a research report on Tuesday, June 23rd. Finally, Mizuho set a $13.00 target price on shares of Verastem and gave the stock an “outperform” rating in a research note on Monday, August 10th. Ten equities 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 company’s stock. Based on data from MarketBeat, Verastem currently has an average rating of “Moderate Buy” and a consensus target price of $13.83.

Verastem Stock Performance

The stock has a market cap of $734.44 million, a price-to-earnings ratio of -3.05 and a beta of 0.39. The stock’s 50 day moving average is $7.37 and its two-hundred day moving average is $5.83. The company has a current ratio of 2.25, a quick ratio of 2.22 and a debt-to-equity ratio of 1.48.

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

Insider Buying and Selling at Verastem

In related news, CEO Dan Paterson sold 44,121 shares of the stock in a transaction 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 trade represents a 6.33% decrease in their ownership of the stock. The sale 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. Insiders sold 48,044 shares of company stock worth $381,484 over the last three months. 1.94% of the stock is owned by company insiders.

Hedge Funds Weigh In On Verastem

Several institutional investors have recently bought and sold shares of VSTM. Seven Fleet Capital Management LP acquired a new stake in shares of Verastem in the 4th quarter worth $117,000. Hsbc Holdings PLC purchased a new position in Verastem during the first quarter worth about $210,000. ADAR1 Capital Management LLC purchased a new position in Verastem during the first quarter worth about $377,000. Quantinno Capital Management LP acquired a new stake in Verastem in the first quarter valued at about $394,000. Finally, Knott David M Jr acquired a new stake in Verastem in the first quarter valued at about $551,000. 88.37% of the stock is owned by institutional investors and hedge funds.

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.