Verastem (NASDAQ:VSTM) Stock Price Target Lowered at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its price target on Verastem from $19 to $18 but maintained an Outperform rating; the new target implies 117% upside from the price cited in the report.
• Verastem shares fell 11.7% to $8.28 in Friday trading. Analysts overall hold a “Moderate Buy” consensus, with an average price target of $16.83.
• The company’s latest quarter missed expectations: its $0.74-per-share loss was wider than the $0.47 expected, while revenue of $24.0 million fell short of the $26.6 million consensus.

Verastem (NASDAQ:VSTM - Get Free Report) had its price objective dropped by equities research analysts at Royal Bank Of Canada from $19.00 to $18.00 in a report issued on Friday, Benzinga reports. The brokerage currently has an "outperform" rating on the biopharmaceutical company's stock. Royal Bank Of Canada's price objective points to a potential upside of 117.31% from the company's current price.

Other analysts have also issued reports about the stock. Weiss Ratings lowered shares of Verastem from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, October 15th. Citigroup reaffirmed a "buy" rating on shares of Verastem in a research note on Thursday, October 8th. Alliance Global Partners reiterated a "buy" rating on shares of Verastem in a report on Thursday, October 15th. BTIG Research upped their price target on Verastem from $18.00 to $24.00 and gave the stock a "buy" rating in a research note on Thursday, October 15th. Finally, Wolfe Research assumed coverage on Verastem in a research report on Thursday, September 17th. They set an "outperform" rating for the company. Eleven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $16.83.

Verastem Trading Down 11.7%

Verastem stock traded down $1.10 during mid-day trading on Friday, hitting $8.28. The company's stock had a trading volume of 4,615,338 shares, compared to its average volume of 2,586,052. Verastem has a 1 year low of $3.43 and a 1 year high of $10.82. The company has a current ratio of 2.25, a quick ratio of 2.22 and a debt-to-equity ratio of 1.48. The firm has a market capitalization of $750.13 million, a PE ratio of -3.13 and a beta of 0.45. The stock's fifty day moving average is $8.36 and its two-hundred day moving average is $6.24.

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

Insider Buying and Selling at Verastem

In related news, CEO Dan Paterson sold 44,121 shares of Verastem 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 transaction, the chief executive officer owned 652,712 shares in the company, valued at approximately $5,221,696. The trade was a 6.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 48,041 shares of company stock valued at $386,390 in the last ninety days. Insiders own 1.94% of the company's stock.

Hedge Funds Weigh In On Verastem

Institutional investors have recently modified their holdings of the business. Opaleye Management Inc. purchased a new stake in Verastem during the 2nd quarter worth about $6,876,000. Hennion & Walsh Asset Management Inc. boosted 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 buying an additional 347,872 shares during the period. Exome Asset Management LLC boosted 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 buying an additional 234,957 shares during the period. Bank of New York Mellon Corp acquired a new position in shares of Verastem during the second quarter worth about $706,000. Finally, Seven Fleet Capital Management LP grew its position in shares of Verastem by 715.1% during the first quarter. Seven Fleet Capital Management LP now owns 123,400 shares of the biopharmaceutical company's stock worth $654,000 after buying an additional 108,260 shares in the last quarter. Institutional investors and hedge funds own 88.37% of the company's stock.

Key Stories Impacting Verastem

Here are the key news stories impacting Verastem this week:

• Positive Sentiment: HC Wainwright raised its price target to $20 from $18 and maintained a Buy rating, signaling increased confidence in Verastem’s potential.
• Neutral Sentiment: CEO Dan Paterson sold 1,299 shares for about $12,470 under a pre-arranged Rule 10b5-1 plan. The sale was a small portion of his holdings; he retained 651,413 shares. SEC filing
• Negative Sentiment: Verastem reported a third-quarter loss of $0.74 per share, wider than analysts’ expected $0.47 loss. Revenue of $24.0 million also missed estimates of about $26.6 million. The loss improved from $1.35 per share a year earlier, but the quarterly misses are a near-term headwind. Third-quarter 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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