Verastem (NASDAQ:VSTM) Upgraded to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Verastem from “sell” to “hold,” while the broader analyst consensus remains “Moderate Buy” with a $13.83 price target.
• Verastem shares opened at $7.74, with the stock down 0.8%; the company reported a quarterly loss of $0.35 per share but exceeded revenue expectations with $40.08 million.
• Institutional investors own 88.37% of Verastem, with several hedge funds increasing or initiating positions in the biopharmaceutical company.

Verastem (NASDAQ:VSTM - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Sunday, Wall Street Zen reports.

VSTM has been the subject of several other reports. Weiss Ratings upgraded shares of Verastem from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, September 4th. Royal Bank Of Canada set a $14.00 target price on shares of Verastem and gave the stock an "outperform" rating in a report on Tuesday, July 7th. 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 cut 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. Finally, Guggenheim set a $12.00 price objective on shares of Verastem and gave the stock a "buy" rating in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $13.83.

Verastem Trading Down 0.8%

Shares of VSTM stock opened at $7.74 on Friday. Verastem has a 1 year low of $3.43 and a 1 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. The stock's 50 day simple moving average is $7.02 and its two-hundred day simple moving average is $5.70. The company has a market cap of $700.93 million, a PE ratio of -2.91 and a beta of 0.32.

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 analyst estimates of $22.88 million. Verastem had a negative return on equity of 467.49% and a negative net margin of 231.59%. Research analysts predict that Verastem will post -1.56 earnings per share for the current year.

Hedge Funds Weigh In On Verastem

Several institutional investors have recently made changes to their positions in VSTM. Armistice Capital LLC grew its holdings in Verastem by 68.7% during the 4th quarter. Armistice Capital LLC now owns 3,536,000 shares of the biopharmaceutical company's stock worth $27,298,000 after acquiring an additional 1,440,000 shares in the last quarter. Foresite Capital Management VI LLC boosted its position in Verastem by 19.9% during the fourth quarter. Foresite Capital Management VI LLC now owns 3,135,120 shares of the biopharmaceutical company's stock valued at $24,203,000 after purchasing an additional 520,000 shares in the last quarter. AIGH Capital Management LLC purchased a new position in Verastem in the first quarter valued at about $10,600,000. NEXTBio Capital Management LP bought a new position in Verastem in the fourth quarter worth about $10,093,000. Finally, Opaleye Management Inc. bought a new position in Verastem in the second quarter worth about $6,876,000. Hedge funds and other institutional investors own 88.37% of the company's stock.

Verastem Company Profile

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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