Nantahala Capital Management LLC Trims Stock Holdings in Verastem, Inc. $VSTM

Key Points

• Nantahala Capital Management LLC reduced its stake in Verastem, Inc. by 38.7%, selling 1,454,042 shares and retaining 2,298,541 shares, which constitutes 0.6% of its portfolio.
• Verastem received several analyst upgrades, with HC Wainwright increasing the target price from $10.00 to $14.00 and maintaining a "buy" rating.
• Verastem's latest earnings report showed a lower-than-expected revenue of $2.14 million and an EPS of ($0.39), compared to analysts’ expectations of ($0.64).

Nantahala Capital Management LLC cut its position in shares of Verastem, Inc. (NASDAQ:VSTM - Free Report) by 38.7% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,298,541 shares of the biopharmaceutical company's stock after selling 1,454,042 shares during the quarter. Verastem comprises about 0.6% of Nantahala Capital Management LLC's holdings, making the stock its 25th largest position. Nantahala Capital Management LLC owned 4.46% of Verastem worth $13,860,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of VSTM. Tower Research Capital LLC TRC increased its position in shares of Verastem by 51.5% during the fourth quarter. Tower Research Capital LLC TRC now owns 4,997 shares of the biopharmaceutical company's stock worth $26,000 after buying an additional 1,698 shares during the period. ProShare Advisors LLC bought a new position in Verastem during the fourth quarter worth $56,000. Voya Investment Management LLC bought a new position in Verastem during the fourth quarter worth $59,000. Sherbrooke Park Advisers LLC bought a new position in Verastem during the fourth quarter worth $61,000. Finally, The Manufacturers Life Insurance Company bought a new position in Verastem during the fourth quarter worth $74,000. 88.37% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have weighed in on VSTM. Zacks Research raised shares of Verastem to a "hold" rating in a research note on Tuesday, August 12th. HC Wainwright raised their price objective on shares of Verastem from $10.00 to $14.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Royal Bank Of Canada raised their price objective on shares of Verastem from $12.00 to $13.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. Wall Street Zen raised shares of Verastem from a "sell" rating to a "hold" rating in a research note on Sunday, August 10th. Finally, B. Riley raised shares of Verastem to a "strong-buy" rating in a research note on Monday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Buy" and an average price target of $13.29.

Verastem Stock Performance

NASDAQ VSTM traded up $1.06 during trading hours on Thursday, reaching $10.56. 3,973,540 shares of the company were exchanged, compared to its average volume of 1,852,969. Verastem, Inc. has a 1 year low of $2.34 and a 1 year high of $10.63. The business's 50 day simple moving average is $6.47 and its 200-day simple moving average is $6.38. The company has a quick ratio of 3.44, a current ratio of 3.46 and a debt-to-equity ratio of 2.06. The stock has a market capitalization of $649.86 million, a P/E ratio of -3.22 and a beta of 0.93.

Verastem (NASDAQ:VSTM - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The biopharmaceutical company reported ($0.39) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.64) by $0.25. The company had revenue of $2.14 million for the quarter, compared to analysts' expectations of $6.01 million. On average, equities research analysts expect that Verastem, Inc. will post -3.02 earnings per share for the current year.

Insider Transactions at Verastem

In related news, CEO Dan Paterson sold 17,808 shares of the firm's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $5.13, for a total transaction of $91,355.04. Following the completion of the sale, the chief executive officer owned 443,839 shares in the company, valued at approximately $2,276,894.07. This trade represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders have sold a total of 24,488 shares of company stock worth $127,149 in the last three months. 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.