Hennion & Walsh Asset Management Inc. Acquires 347,872 Shares of Verastem, Inc. $VSTM

Key Points

• Hennion & Walsh Asset Management increased its Verastem stake by 157.2%, purchasing 347,872 additional shares to own 569,195 shares valued at approximately $2.17 million. Institutional investors collectively own 88.37% of the company.
• Verastem reported a quarterly loss of $0.35 per share, outperforming the estimated loss of $0.43, while revenue of $40.08 million exceeded expectations of $22.88 million. The company remains unprofitable, with a negative net margin of 231.59%.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $13.83 versus the reported share price of $7.05. However, CEO Dan Paterson recently sold 20,871 shares under a pre-arranged trading plan.

Hennion & Walsh Asset Management Inc. raised its holdings in shares of Verastem, Inc. (NASDAQ:VSTM - Free Report) by 157.2% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 569,195 shares of the biopharmaceutical company's stock after buying an additional 347,872 shares during the quarter. Hennion & Walsh Asset Management Inc. owned about 0.65% of Verastem worth $2,174,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of the business. Russell Investments Group Ltd. grew its stake in shares of Verastem by 182.9% in the third quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company's stock worth $40,000 after acquiring an additional 2,960 shares during the last quarter. BNP Paribas Financial Markets raised its stake in Verastem by 110.9% during the 3rd quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company's stock valued at $75,000 after purchasing an additional 4,496 shares during the last quarter. E Fund Management Co. Ltd. bought a new stake in Verastem in the 2nd quarter valued at $49,000. DRW Securities LLC bought a new stake in Verastem in the 4th quarter valued at $93,000. Finally, Nebula Research & Development LLC acquired a new stake in Verastem in the 2nd quarter worth $53,000. 88.37% of the stock is owned by institutional investors.

Verastem Stock Performance

NASDAQ:VSTM opened at $7.05 on Wednesday. Verastem, Inc. has a 12-month low of $3.43 and a 12-month high of $11.24. The company has a quick ratio of 3.00, a current ratio of 3.04 and a debt-to-equity ratio of 0.89. The firm has a market capitalization of $638.45 million, a PE ratio of -2.65 and a beta of 0.26. The firm has a 50-day moving average price of $4.98 and a 200 day moving average price of $5.38.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) EPS for the quarter, topping analysts' consensus estimates of ($0.43) by $0.08. The firm had revenue of $40.08 million during the quarter, compared to analysts' expectations of $22.88 million. Verastem had a negative net margin of 231.59% and a negative return on equity of 492.59%. Research analysts anticipate that Verastem, Inc. will post -1.59 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Dan Paterson sold 20,871 shares of the firm's stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $4.18, for a total transaction of $87,240.78. Following the completion of the transaction, the chief executive officer owned 591,242 shares in the company, valued at $2,471,391.56. This trade represents a 3.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 26,262 shares of company stock valued at $111,897. Corporate insiders own 1.94% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on VSTM shares. Alliance Global Partners restated a "buy" rating on shares of Verastem in a report on Friday, May 8th. Royal Bank Of Canada set a $14.00 target price on Verastem and gave the stock an "outperform" rating in a research report on Tuesday, July 7th. Jefferies Financial Group lowered their price target on Verastem from $15.00 to $8.00 and set a "buy" rating on the stock in a research note on Tuesday, June 23rd. Weiss Ratings cut Verastem from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, June 17th. Finally, Guggenheim set a $12.00 price objective on Verastem and gave the stock a "buy" rating in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $13.83.

Verastem Company Profile

Verastem Oncology, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of small molecule therapies that target cancer stemness and resistance pathways. Established in 2010 and headquartered in Needham, Massachusetts, Verastem Oncology applies a precision-medicine approach to identify key signaling nodes responsible for tumor growth and relapse, with an emphasis on hematologic malignancies and solid tumors. The company’s research platform integrates insights into complex signaling networks to advance novel compounds from early discovery through clinical proof of concept.

The company’s lead marketed product is COPIKTRA (duvelisib), an oral inhibitor of PI3K-delta and PI3K-gamma, which received U.S.

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