Verastem's (VSTM) Buy Rating Reaffirmed at BTIG Research

Key Points

• BTIG Research reaffirmed its “buy” rating on Verastem and set an $18 price target, implying 133.77% upside from the prior close. Analysts’ consensus rating is “Moderate Buy,” with an average target of $13.83.
• Verastem reported quarterly EPS of negative $0.35, beating estimates of negative $0.43, while revenue of $40.08 million exceeded the $22.88 million consensus forecast.
• CEO Dan Paterson sold 44,121 shares worth about $353,000 under a pre-arranged trading plan, while institutional investors and hedge funds own 88.37% of the company.

Verastem (NASDAQ:VSTM - Get Free Report)'s stock had its "buy" rating restated by analysts at BTIG Research in a research report issued on Monday, Benzinga reports. They currently have a $18.00 target price on the biopharmaceutical company's stock. BTIG Research's target price indicates a potential upside of 133.77% from the stock's previous close.

Several other research analysts have also recently issued reports on the stock. Royal Bank Of Canada set a $14.00 price objective on shares of Verastem and gave the company an "outperform" rating in a report on Tuesday, July 7th. Guggenheim set a $12.00 target price on shares of Verastem and gave the stock a "buy" rating in a report on Friday, August 7th. Jefferies Financial Group reduced their target price on shares of Verastem from $15.00 to $8.00 and set a "buy" rating for the company in a report on Tuesday, June 23rd. Wall Street Zen upgraded shares of Verastem from a "sell" rating to a "hold" rating in a report on Sunday, September 27th. Finally, Mizuho set a $13.00 target price on shares of Verastem and gave the stock an "outperform" rating in a report on Monday, August 10th. Nine investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $13.83.

Verastem Stock Performance

Verastem stock opened at $7.70 on Monday. The firm has a 50 day simple moving average of $7.21 and a 200-day simple moving average of $5.76. The company has a debt-to-equity ratio of 1.48, a current ratio of 2.25 and a quick ratio of 2.22. The stock has a market capitalization of $697.31 million, a PE ratio of -2.89 and a beta of 0.39. Verastem has a 12-month low of $3.43 and a 12-month high of $10.82.

Verastem (NASDAQ:VSTM - Get Free Report) last posted its quarterly earnings data 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 business had revenue of $40.08 million during the quarter, compared to analysts' expectations of $22.88 million. Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%. As a group, equities research analysts expect that Verastem will post -1.56 EPS for the current fiscal year.

Insider Activity at Verastem

In other Verastem news, CEO Dan Paterson sold 44,121 shares of the stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $8.00, for a total value of $352,968.00. Following the completion of the sale, the chief executive officer owned 652,712 shares in the company, valued at $5,221,696. This represents a 6.33% decrease in their position. 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 three months, insiders have sold 48,044 shares of company stock valued at $381,484. 1.94% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Hennion & Walsh Asset Management Inc. raised its holdings in shares of Verastem by 157.2% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 569,195 shares of the biopharmaceutical company's stock valued at $2,174,000 after purchasing an additional 347,872 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Verastem during the 2nd quarter valued at $706,000. AIGH Capital Management LLC bought a new position in shares of Verastem during the 1st quarter valued at $10,600,000. Opaleye Management Inc. bought a new position in shares of Verastem during the 2nd quarter valued at $6,876,000. Finally, Exome Asset Management LLC raised its holdings in shares of Verastem by 58.5% during the 1st quarter. Exome Asset Management LLC now owns 636,700 shares of the biopharmaceutical company's stock valued at $3,375,000 after purchasing an additional 234,957 shares in the last quarter. 88.37% of the stock is owned by institutional investors and hedge funds.

Verastem Company Profile

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.