Verastem (NASDAQ:VSTM) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Verastem from “Hold” to “Sell,” though the broader analyst consensus remains “Moderate Buy,” with an average price target of $16.83.
• Verastem’s latest quarter missed expectations: its loss was $0.74 per share versus a forecast loss of $0.47, and revenue was $24.0 million versus an expected $26.6 million.
• Shares were reported down 10.3%; CEO Dan Paterson also sold 44,121 shares under a pre-arranged trading plan, while retaining 652,712 shares.

Verastem (NASDAQ:VSTM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday, Wall Street Zen reports.

VSTM has been the topic of several other reports. Mizuho lifted their target price on Verastem from $13.00 to $14.00 and gave the stock an "outperform" rating in a report on Friday, October 16th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Verastem in a research note on Monday, September 28th. Wolfe Research began coverage on Verastem in a report on Thursday, September 17th. They issued an "outperform" rating on the stock. Jefferies Financial Group reissued a "buy" rating and set a $13.00 price objective (up from $11.00) on shares of Verastem in a report on Wednesday, October 14th. Finally, Alliance Global Partners reissued a "buy" rating on shares of Verastem in a report on Thursday, October 15th. Eleven investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $16.83.

Verastem Trading Down 10.3%

Shares of VSTM stock opened at $8.41 on Friday. 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 twelve month low of $3.43 and a twelve month high of $10.82. The firm has a 50-day moving average price of $8.38 and a 200 day moving average price of $6.25. The company has a market capitalization of $761.61 million, a price-to-earnings ratio of -4.10 and a beta of 0.45.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The biopharmaceutical company reported ($0.74) EPS for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.27). The firm had revenue of $24.01 million during the quarter, compared to the consensus estimate of $26.57 million. Verastem had a negative return on equity of 467.49% and a negative net margin of 231.59%. Research analysts forecast that Verastem will post -1.51 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 Verastem stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $8.00, for a total transaction of $352,968.00. Following 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 48,041 shares of company stock valued at $386,390. 1.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Verastem

Institutional investors have recently bought and sold shares of the stock. Simplicity Wealth LLC bought a new stake in Verastem during the third quarter valued at approximately $89,000. Commonwealth Equity Services LLC purchased a new position in shares of Verastem during the 3rd quarter valued at about $122,000. Hsbc Holdings PLC purchased a new stake in Verastem during the 1st quarter valued at approximately $210,000. Aries Wealth Management boosted its holdings in shares of Verastem by 6.5% in the 3rd quarter. Aries Wealth Management now owns 32,833 shares of the biopharmaceutical company's stock worth $264,000 after purchasing an additional 2,000 shares during the period. Finally, ADAR1 Capital Management LLC bought a new position in shares of Verastem in the first quarter worth about $377,000. Institutional investors own 88.37% of the company's stock.

Verastem News Summary

Here are the key news stories impacting Verastem this week:

• Positive Sentiment: HC Wainwright raised its price target from $18 to $20 and maintained a Buy rating, signaling continued confidence in Verastem’s prospects. HC Wainwright rating
• Neutral Sentiment: Royal Bank of Canada lowered its target from $19 to $18 but kept its Outperform rating. The reduced target is a modest caution, while the rating remains supportive. RBC rating
• Neutral Sentiment: CEO Dan Paterson sold 1,299 shares under a pre-arranged Rule 10b5-1 plan, a sale equal to about 0.2% of his holdings; he still owned more than 651,000 shares afterward. SEC filing
• Neutral Sentiment: Verastem posted an updated corporate presentation on its oncology programs, but the available report did not specify material new developments. Presentation update
• Negative Sentiment: Verastem reported a Q3 loss of $0.74 per share, wider than the roughly $0.47 consensus loss, while revenue of $24.0 million missed estimates of about $26.6 million. The loss narrowed from $1.35 per share a year earlier, but the quarterly misses were the clearest near-term pressure on the stock. Q3 results

About Verastem

Verastem, operating as Verastem Oncology, is a biopharmaceutical company focused on developing and commercializing targeted therapies for cancer. The company's research is centered on tumors driven by abnormalities in the RAS/MAPK signaling pathway, which can promote cancer-cell growth and resistance to treatment.

Verastem's leading product candidates include avutometinib, an oral RAF/MEK clamp designed to inhibit signaling within the RAS/MAPK pathway, and defactinib, an oral focal adhesion kinase inhibitor.

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