Verastem, Inc. (NASDAQ:VSTM) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Verastem has a “Moderate Buy” consensus rating from 11 analysts, with eight buys, one strong buy, one hold and one sell. The average 12-month price target is $13.83, versus a recent share price of $7.44.
• Institutional investors hold 88.37% of Verastem’s stock, with several hedge funds recently initiating or expanding positions, including Opaleye Management’s approximately $6.9 million stake.
• Verastem’s latest quarterly results exceeded expectations, reporting an adjusted loss of $0.35 per share versus the $0.43 consensus estimate and revenue of $40.08 million compared with $22.88 million expected.

Verastem, Inc. (NASDAQ:VSTM - Get Free Report) has been given an average rating of "Moderate Buy" by the eleven ratings firms that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $13.8333.

VSTM has been the topic of a number of research reports. Wolfe Research assumed coverage on Verastem in a report on Thursday. They issued an "outperform" rating on the stock. Wall Street Zen cut Verastem from a "hold" rating to a "sell" rating in a report on Saturday. Weiss Ratings upgraded Verastem from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, September 4th. Guggenheim set a $12.00 target price on Verastem and gave the company a "buy" rating in a report on Friday, August 7th. Finally, HC Wainwright restated a "buy" rating and issued a $18.00 price target on shares of Verastem in a research report on Friday, September 11th.

Hedge Funds Weigh In On Verastem

Hedge funds have recently added to or reduced their stakes in the business. Opaleye Management Inc. acquired a new position in Verastem during the second quarter worth about $6,876,000. Bank of New York Mellon Corp acquired a new stake in shares of Verastem in the second quarter valued at approximately $706,000. Hennion & Walsh Asset Management Inc. grew its position in shares of Verastem by 157.2% in the second 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 during the last quarter. Seven Fleet Capital Management LP increased its stake in shares of Verastem by 715.1% during the 1st quarter. Seven Fleet Capital Management LP now owns 123,400 shares of the biopharmaceutical company's stock worth $654,000 after purchasing an additional 108,260 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in shares of Verastem by 31.6% during the 1st quarter. Bank of America Corp DE now owns 416,985 shares of the biopharmaceutical company's stock worth $2,210,000 after purchasing an additional 100,123 shares in the last quarter. 88.37% of the stock is currently owned by hedge funds and other institutional investors.

Verastem Price Performance

VSTM stock opened at $7.44 on Monday. The company has a market cap of $673.77 million, a P/E ratio of -2.80 and a beta of 0.32. Verastem has a 52 week low of $3.43 and a 52 week high of $10.82. The company's 50-day moving average price is $6.79 and its 200 day moving average price is $5.62. 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 (NASDAQ:VSTM - Get Free Report) last issued its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) earnings per share for the quarter, topping the consensus estimate of ($0.43) by $0.08. Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%. The company had revenue of $40.08 million for the quarter, compared to analyst estimates of $22.88 million. On average, research analysts expect that Verastem will post -1.56 earnings per share for the current fiscal year.

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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