Verastem (NASDAQ:VSTM) Stock Price Expected to Rise, HC Wainwright Analyst Says

Key Points

• HC Wainwright raised its Verastem price target from $18 to $20 and maintained a Buy rating, implying 113% upside from the price cited in the report. Across analysts, the stock has a Moderate Buy consensus and an average $17 target.
• Verastem’s latest quarter missed expectations: it reported a $0.74-per-share loss versus a forecast $0.47 loss, and revenue of $24.01 million versus $26.57 million expected. The loss nevertheless narrowed from $1.35 per share a year earlier.
• Shares opened at $9.38, while CEO Dan Paterson sold shares under a pre-arranged trading plan; he continued to hold more than 652,000 shares after the reported sale.

Verastem (NASDAQ:VSTM - Get Free Report) had its price target lifted by stock analysts at HC Wainwright from $18.00 to $20.00 in a research report issued on Friday, Marketbeat.com reports. The firm presently has a "buy" rating on the biopharmaceutical company's stock. HC Wainwright's target price suggests a potential upside of 113.22% from the company's current price.

Other research analysts have also recently issued research reports about the company. Weiss Ratings cut Verastem from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, October 15th. Alliance Global Partners reaffirmed a "buy" rating on shares of Verastem in a research note on Thursday, October 15th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Verastem in a research note on Monday, September 28th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $19.00 price objective (up from $14.00) on shares of Verastem in a report on Thursday, October 15th. Finally, Jefferies Financial Group reiterated a "buy" rating and set a $13.00 price objective (up from $11.00) on shares of Verastem in a research report on Wednesday, October 14th. Eleven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Verastem has an average rating of "Moderate Buy" and an average target price of $17.00.

Verastem Price Performance

Shares of NASDAQ:VSTM opened at $9.38 on Friday. The company's fifty day moving average price is $8.36 and its 200-day moving average price is $6.24. The firm has a market capitalization of $849.45 million, a price-to-earnings ratio of -3.53 and a beta of 0.45. Verastem has a one year low of $3.43 and a one year high of $10.82. The company has a debt-to-equity ratio of 1.48, a current ratio of 2.25 and a quick ratio of 2.22.

Verastem (NASDAQ:VSTM - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The biopharmaceutical company reported ($0.74) earnings per share for the quarter, missing the consensus estimate of ($0.47) by ($0.27). Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%. The company had revenue of $24.01 million for the quarter, compared to analysts' expectations of $26.57 million. On average, equities research analysts anticipate that Verastem will post -1.51 earnings per share for the current fiscal year.

Insider Buying and Selling at Verastem

In other news, CEO Dan Paterson sold 44,121 shares of the company's stock in a transaction 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 of the company's stock, valued at approximately $5,221,696. This represents a 6.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 48,041 shares of company stock valued at $386,390. Insiders own 1.94% of the company's stock.

Hedge Funds Weigh In On Verastem

A number of large investors have recently added to or reduced their stakes in the business. Opaleye Management Inc. purchased a new position in shares of Verastem in the second quarter worth about $6,876,000. Exome Asset Management LLC lifted its stake in shares of Verastem by 58.5% in the 1st quarter. Exome Asset Management LLC now owns 636,700 shares of the biopharmaceutical company's stock valued at $3,375,000 after acquiring an additional 234,957 shares during the last quarter. Hennion & Walsh Asset Management Inc. lifted its stake in shares of Verastem by 157.2% in 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 acquiring an additional 347,872 shares during the last quarter. Bank of America Corp DE boosted its holdings in Verastem by 31.6% during the 1st quarter. Bank of America Corp DE now owns 416,985 shares of the biopharmaceutical company's stock valued at $2,210,000 after acquiring an additional 100,123 shares during the period. Finally, Torray Investment Partners LLC boosted its holdings in Verastem by 38.2% during the 1st quarter. Torray Investment Partners LLC now owns 298,958 shares of the biopharmaceutical company's stock valued at $1,584,000 after acquiring an additional 82,571 shares during the period. Hedge funds and other 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: Verastem’s third-quarter loss narrowed to $0.74 per share from $1.35 per share a year earlier, showing year-over-year improvement despite the earnings miss. Zacks report
• Neutral Sentiment: CEO Dan Paterson sold 1,299 shares for about $12,470, a 0.20% reduction in his holdings. The sale was made under a pre-arranged Rule 10b5-1 plan, and he retained more than 651,000 shares. SEC filing
• Neutral Sentiment: The company posted an updated presentation on its oncology programs; the report did not describe specific new developments that would materially alter the outlook. Presentation update
• Negative Sentiment: Third-quarter results fell short of forecasts: the loss was $0.74 per share versus an expected $0.47, while revenue of $24.0 million was below the roughly $26.6 million consensus. The earnings and revenue misses are the clearest potential pressure on VSTM. Quarterly results

Verastem Company Profile

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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