Verastem, Inc. (NASDAQ:VSTM) Receives Consensus Recommendation of “Buy” from Brokerages

Shares of Verastem, Inc. (NASDAQ:VSTM) have earned an average rating of “Buy” from the ten ratings firms that are covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell rating, one has given a hold rating, five have given a buy rating and three have given a strong buy rating to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $17.40.

VSTM has been the subject of a number of analyst reports. BTIG Research initiated coverage on Verastem in a research note on Thursday, March 12th. They set a “buy” rating and a $19.00 price objective for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Verastem in a research note on Wednesday, January 21st. HC Wainwright started coverage on shares of Verastem in a report on Wednesday, February 4th. They issued a “buy” rating and a $18.00 target price for the company. Wall Street Zen raised shares of Verastem from a “sell” rating to a “hold” rating in a research report on Saturday, March 7th. Finally, Jefferies Financial Group restated a “buy” rating and issued a $19.00 price target on shares of Verastem in a report on Thursday, March 5th.

Verastem Price Performance

Verastem stock opened at $5.04 on Monday. The business has a fifty day moving average of $6.00 and a two-hundred day moving average of $7.77. The company has a quick ratio of 3.07, a current ratio of 3.09 and a debt-to-equity ratio of 1.33. The firm has a market cap of $442.66 million, a P/E ratio of -1.57 and a beta of 0.40. Verastem has a twelve month low of $4.01 and a twelve month high of $11.24.

Verastem (NASDAQ:VSTM) last announced its earnings results on Wednesday, March 4th. The biopharmaceutical company reported ($0.50) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.49) by ($0.01). The business had revenue of $17.54 million during the quarter, compared to analyst estimates of $16.85 million. On average, analysts forecast that Verastem will post -3.02 earnings per share for the current fiscal year.

Insider Activity at Verastem

In other Verastem news, CFO Daniel Calkins sold 5,039 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $7.16, for a total value of $36,079.24. Following the completion of the sale, the chief financial officer directly owned 104,719 shares in the company, valued at $749,788.04. This trade represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Dan Paterson sold 10,321 shares of Verastem stock in a transaction on Monday, January 12th. The stock was sold at an average price of $7.16, for a total transaction of $73,898.36. Following the completion of the transaction, the chief executive officer directly owned 400,104 shares in the company, valued at $2,864,744.64. This represents a 2.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 16,330 shares of company stock valued at $116,467. 2.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Russell Investments Group Ltd. raised its stake in Verastem by 182.9% in the third quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company’s stock valued at $40,000 after buying an additional 2,960 shares during the last quarter. E Fund Management Co. Ltd. acquired a new stake in Verastem in the second quarter worth about $49,000. Nebula Research & Development LLC purchased a new stake in shares of Verastem during the second quarter worth about $53,000. The Manufacturers Life Insurance Company grew its stake in shares of Verastem by 9.8% during the second quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company’s stock worth $67,000 after acquiring an additional 1,440 shares during the last quarter. Finally, BNP Paribas Financial Markets increased its holdings in shares of Verastem by 110.9% during the third quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company’s stock valued at $75,000 after acquiring an additional 4,496 shares in the last quarter. 88.37% of the stock is currently owned by hedge funds and other institutional investors.

About Verastem

Verastem Oncology, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of small molecule therapies that target cancer stemness and resistance pathways. Established in 2010 and headquartered in Needham, Massachusetts, Verastem Oncology applies a precision-medicine approach to identify key signaling nodes responsible for tumor growth and relapse, with an emphasis on hematologic malignancies and solid tumors. The company’s research platform integrates insights into complex signaling networks to advance novel compounds from early discovery through clinical proof of concept.

The company’s lead marketed product is COPIKTRA (duvelisib), an oral inhibitor of PI3K-delta and PI3K-gamma, which received U.S.