Jefferies Financial Group Inc. Makes New Investment in Verastem, Inc. (NASDAQ:VSTM)

Key Points

• Jefferies Financial Group Inc. made a new investment of $1.63 million in Verastem, acquiring 270,520 shares during the first quarter, representing about 0.53% ownership of the biopharmaceutical company.
• Insider trading reports revealed that CFO Daniel Calkins and CEO Dan Paterson both sold shares on May 20th, reducing their stakes by 8.90% and 11.27% respectively.
• Analysts have mixed views on Verastem, with eight buy ratings and one sell rating, while the average price target for the stock is set at $13.38.

Jefferies Financial Group Inc. purchased a new position in Verastem, Inc. (NASDAQ:VSTM - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 270,520 shares of the biopharmaceutical company's stock, valued at approximately $1,631,000. Jefferies Financial Group Inc. owned about 0.53% of Verastem at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in VSTM. ProShare Advisors LLC bought a new position in shares of Verastem in the fourth quarter valued at approximately $56,000. BNP Paribas Financial Markets bought a new position in Verastem during the 4th quarter worth approximately $387,000. Stifel Financial Corp boosted its stake in shares of Verastem by 30.5% during the fourth quarter. Stifel Financial Corp now owns 39,593 shares of the biopharmaceutical company's stock valued at $205,000 after purchasing an additional 9,254 shares during the period. Wells Fargo & Company MN increased its position in shares of Verastem by 41.3% in the fourth quarter. Wells Fargo & Company MN now owns 20,571 shares of the biopharmaceutical company's stock valued at $106,000 after acquiring an additional 6,012 shares during the period. Finally, Voya Investment Management LLC purchased a new stake in Verastem in the 4th quarter worth approximately $59,000. 88.37% of the stock is owned by institutional investors.

Verastem Price Performance

Shares of VSTM stock traded down $0.09 during trading hours on Thursday, reaching $5.64. The company had a trading volume of 1,832,060 shares, compared to its average volume of 1,675,134. Verastem, Inc. has a 12 month low of $2.18 and a 12 month high of $9.10. The business has a fifty day simple moving average of $5.42 and a 200-day simple moving average of $6.03. The company has a market cap of $309.64 million, a price-to-earnings ratio of -1.76 and a beta of 0.83.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its quarterly earnings results on Tuesday, May 13th. The biopharmaceutical company reported ($0.96) earnings per share for the quarter, missing the consensus estimate of ($0.72) by ($0.24). On average, equities research analysts expect that Verastem, Inc. will post -3.02 earnings per share for the current year.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Jefferies Financial Group began coverage on shares of Verastem in a research note on Thursday, April 10th. They issued a "buy" rating and a $15.00 price target on the stock. Wall Street Zen downgraded Verastem from a "hold" rating to a "sell" rating in a report on Friday, April 18th. Mizuho lowered their price target on shares of Verastem from $9.00 to $8.00 and set an "outperform" rating on the stock in a report on Wednesday, April 9th. HC Wainwright boosted their price target on Verastem from $10.00 to $14.00 and gave the company a "buy" rating in a report on Friday, May 9th. Finally, Royal Bank Of Canada raised shares of Verastem from an "outperform" rating to a "moderate buy" rating and decreased their price target for the stock from $16.00 to $12.00 in a research note on Wednesday, June 25th. One equities research analyst has rated the stock with a sell rating and eight have issued a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $13.38.

Insider Transactions at Verastem

In related news, CFO Daniel Calkins sold 11,143 shares of the company's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $8.13, for a total transaction of $90,592.59. Following the completion of the sale, the chief financial officer directly owned 114,055 shares in the company, valued at $927,267.15. This represents a 8.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Dan Paterson sold 58,677 shares of Verastem stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $8.13, for a total transaction of $477,044.01. Following the transaction, the chief executive officer directly owned 461,982 shares of the company's stock, valued at approximately $3,755,913.66. This trade represents a 11.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 94,308 shares of company stock valued at $694,786. Company insiders own 2.10% of the company's stock.

Verastem Company Profile

Verastem, Inc, a development-stage biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer in the United States. Its product candidates are Avutometinib, an orally available small molecule RAF/MEK clamp that inhibits the ras sarcoma RAF/MEK, ERK mitogen activated pathway kinase pathway which is involved in cell proliferation, migration, transformation, and survival of tumor cells; and Defactinib, an oral small molecule inhibitor of FAK and proline-rich tyrosine kinase for various solid tumors.