Verastem (NASDAQ:VSTM) Coverage Initiated by Analysts at Wolfe Research

Key Points

• Wolfe Research initiated coverage of Verastem with an “outperform” rating. Overall analyst sentiment is “Moderate Buy,” with a consensus price target of $13.83 versus the stock’s $7.32 opening price.
• Verastem reported a quarterly loss of $0.35 per share, beating estimates of $0.43, while revenue of $40.08 million exceeded the $22.88 million consensus forecast. Analysts expect a full-year loss of $1.56 per share.
• Institutional investors own 88.37% of Verastem. Company insiders sold 26,262 shares worth approximately $111,897 over the past three months, including a sale by CEO Dan Paterson.

Analysts at Wolfe Research initiated coverage on shares of Verastem (NASDAQ:VSTM - Get Free Report) in a research note issued on Thursday, MarketBeat Ratings reports. The brokerage set an "outperform" rating on the biopharmaceutical company's stock.

Other research analysts have also recently issued reports about the stock. BTIG Research reiterated a "buy" rating and issued a $18.00 target price on shares of Verastem in a research note on Friday, September 11th. Mizuho set a $13.00 price target on shares of Verastem and gave the stock an "outperform" rating in a research note on Monday, August 10th. Jefferies Financial Group lowered their price target on shares of Verastem from $15.00 to $8.00 and set a "buy" rating on the stock in a report on Tuesday, June 23rd. Weiss Ratings upgraded Verastem from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, September 4th. Finally, HC Wainwright reissued a "buy" rating and set a $18.00 price objective on shares of Verastem in a report on Friday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $13.83.

Verastem Stock Down 0.3%

VSTM stock opened at $7.32 on Thursday. The stock's fifty day simple moving average is $6.71 and its two-hundred day simple moving average is $5.60. 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 has a 1-year low of $3.43 and a 1-year high of $10.82. The stock has a market cap of $662.90 million, a P/E ratio of -2.75 and a beta of 0.32.

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

Insider Activity at Verastem

In other news, CEO Dan Paterson sold 20,871 shares of Verastem stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $4.18, for a total value of $87,240.78. Following the completion of the transaction, the chief executive officer directly owned 591,242 shares in the company, valued at approximately $2,471,391.56. The trade was a 3.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 26,262 shares of company stock valued at $111,897 over the last three months. 1.94% of the stock is owned by company insiders.

Institutional Investors Weigh In On Verastem

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

About Verastem

Verastem Oncology 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 principal products include avutometinib, a RAF/MEK pathway inhibitor, and defactinib, a focal adhesion kinase (FAK) inhibitor. The company has studied these therapies both individually and in combination, with the goal of improving cancer-cell response and overcoming treatment resistance.

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