Verastem, Inc. (VSTM) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analysts remain broadly positive: Verastem has a “Moderate Buy” consensus from 12 analysts, with 10 buy ratings and an average 12-month price target of $16.50.
• VS-7375 clinical results strengthened the investment case: The drug showed a 50% confirmed response rate in second-line pancreatic cancer, including two complete responses, supporting plans for Phase III development.
• New financing adds capital but creates dilution: Verastem raised approximately $250 million to fund late-stage programs, while issuing roughly 30.9 million shares and pre-funded warrants at $8 per share; institutional investors own 88.37% of the stock.

Shares of Verastem, Inc. (NASDAQ:VSTM - Get Free Report) have earned a consensus rating of "Moderate Buy" from the twelve analysts that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and ten have given a buy rating to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $16.50.

A number of equities research analysts have recently commented on VSTM shares. Alliance Global Partners reaffirmed a "buy" rating on shares of Verastem in a research note on Thursday. Wolfe Research began coverage on Verastem in a report on Thursday, September 17th. They set an "outperform" rating for the company. Jefferies Financial Group reiterated a "buy" rating and issued a $13.00 target price (up from $11.00) on shares of Verastem in a research report on Wednesday. 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 research note on Monday, August 10th.

Insiders Place Their Bets

In other 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 of the company's stock, valued at $5,221,696. This represents a 6.33% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 48,044 shares of company stock valued at $381,484. Insiders own 1.94% of the company's stock.

Hedge Funds Weigh In On Verastem

Several large investors have recently modified their holdings of the business. Bank of New York Mellon Corp acquired a new position in shares of Verastem in the 2nd quarter worth approximately $706,000. Hennion & Walsh Asset Management Inc. boosted its holdings in 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 in the last quarter. AIGH Capital Management LLC acquired a new position in Verastem in the first quarter valued at $10,600,000. Opaleye Management Inc. acquired a new stake in shares of Verastem in the second quarter valued at approximately $6,876,000. Finally, Exome Asset Management LLC grew 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 purchasing an additional 234,957 shares during 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: VS-7375 showed meaningful anti-tumor activity across KRAS G12D-mutated pancreatic, lung and colorectal cancers. In second-line pancreatic ductal adenocarcinoma, the drug produced a 50% confirmed objective response rate, including two complete responses in second-line-or-later disease. The results support Verastem’s plans to advance the program into Phase III testing. VS-7375 clinical data
• Positive Sentiment: BTIG Research raised its price target from $18 to $24 and initiated or reaffirmed a Buy rating. The new target implies substantial upside from the recent trading level, adding analyst support to the clinical-data-driven rally.
• Positive Sentiment: Verastem priced a roughly $250 million financing, providing capital to support late-stage development of VS-7375 and other oncology programs. The additional cash reduces near-term funding risk as the company prepares for Phase III. Verastem financing announcement
• Neutral Sentiment: Michael P. Bailey will become president and CEO on January 1, 2027, succeeding retiring CEO Daniel Paterson. The planned transition provides leadership continuity, but investors will monitor execution as the company moves toward pivotal trials. CEO succession announcement
• Negative Sentiment: The financing involves approximately 30.9 million new common shares plus pre-funded warrants priced at $8 per share, creating substantial dilution for existing shareholders. In addition, VS-7375 remains investigational, and the company faces clinical, regulatory and competitive risks as it advances toward Phase III.

Verastem Stock Up 19.7%

Verastem stock opened at $9.23 on Friday. The business's 50-day simple moving average is $7.61 and its two-hundred day simple moving average is $5.94. The company has a market cap of $835.87 million, a PE ratio of -3.47 and a beta of 0.39. Verastem has a fifty-two week low of $3.43 and a fifty-two week high of $10.82. The company has a debt-to-equity ratio of 1.48, a quick ratio of 2.22 and a current ratio of 2.25.

Verastem (NASDAQ:VSTM - Get Free Report) last posted its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.43) by $0.08. The company had revenue of $40.08 million during the quarter, compared to the consensus estimate of $22.88 million. Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%. Equities analysts anticipate that Verastem will post -1.55 EPS for the current year.

About Verastem

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.

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