Verastem (NASDAQ:VSTM) Stock: Insider Dan Paterson Sells 1,299 Shares

Key Points

• CEO Dan Paterson sold 1,299 shares for $12,470 under a pre-arranged Rule 10b5-1 plan, a 0.20% reduction in his holdings; he retained 651,413 shares.
• Verastem’s quarterly results missed analyst expectations: its loss was $0.72 per share versus $0.47 expected, while revenue of $24.01 million fell short of the $26.57 million forecast.
• Analysts’ consensus rating was Moderate Buy, with an average price target of $16.67.

Verastem, Inc. (NASDAQ:VSTM - Get Free Report) CEO Dan Paterson sold 1,299 shares of the firm's stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $9.60, for a total value of $12,470.40. Following the completion of the transaction, the chief executive officer directly owned 651,413 shares in the company, valued at $6,253,564.80. The trade was a 0.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Dan Paterson also recently made the following trade(s):

• On Thursday, October 1st, Dan Paterson sold 44,121 shares of Verastem stock. The shares were sold at an average price of $8.00, for a total value of $352,968.00.

Verastem Stock Performance

Shares of NASDAQ VSTM traded down $0.47 during midday trading on Thursday, hitting $9.38. 3,032,681 shares of the company's stock traded hands, compared to its average volume of 5,675,517. The firm has a fifty day moving average of $8.36 and a 200 day moving average of $6.24. Verastem, Inc. has a 1 year low of $3.43 and a 1 year 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. The stock has a market capitalization of $849.45 million, a price-to-earnings ratio of -3.53 and a beta of 0.45.

Verastem (NASDAQ:VSTM - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The biopharmaceutical company reported ($0.72) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.25). The business had revenue of $24.01 million during the quarter, compared to analysts' expectations of $26.57 million. Verastem had a negative return on equity of 467.49% and a negative net margin of 231.59%. On average, analysts forecast that Verastem, Inc. will post -1.51 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on VSTM shares. Alliance Global Partners reiterated a "buy" rating on shares of Verastem in a research note on Thursday, October 15th. HC Wainwright restated a "buy" rating and issued a $18.00 price objective on shares of Verastem in a research note on Monday, October 5th. Wall Street Zen raised Verastem from a "sell" rating to a "hold" rating in a report on Sunday, September 27th. Citigroup reiterated a "buy" rating on shares of Verastem in a research report on Thursday, October 8th. Finally, Jefferies Financial Group reissued a "buy" rating and set a $13.00 price target (up from $11.00) on shares of Verastem in a report on Wednesday, October 14th. Eleven analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $16.67.

Verastem News Roundup

Here are the key news stories impacting Verastem this week:

• Positive Sentiment: Verastem’s reported quarterly loss improved from $1.35 per share a year ago, though it remained larger than analysts expected. Zacks report
• Neutral Sentiment: CEO Dan Paterson sold 1,299 shares—about 0.20% of his holdings—in a transaction under a pre-arranged Rule 10b5-1 plan, leaving him with more than 651,000 shares. The small, scheduled sale may have limited significance for investors. SEC filing
• Neutral Sentiment: The company posted an updated corporate presentation on its oncology programs, but the report provided no specific new developments likely to change the investment outlook. Corporate presentation update
• Negative Sentiment: Third-quarter adjusted loss was $0.72 per share, wider than the $0.47-per-share consensus estimate. Revenue of $24.0 million also fell short of expectations of about $26.6 million. The earnings and sales misses are the clearest near-term headwinds for the stock. Third-quarter results

Hedge Funds Weigh In On Verastem

A number of hedge funds have recently modified their holdings of VSTM. Commonwealth Equity Services LLC bought a new stake in shares of Verastem during the 3rd quarter valued at $122,000. Aries Wealth Management lifted its stake in shares of Verastem by 6.5% during the 3rd quarter. Aries Wealth Management now owns 32,833 shares of the biopharmaceutical company's stock valued at $264,000 after buying an additional 2,000 shares in the last quarter. Simplicity Wealth LLC purchased a new position in shares of Verastem during the 3rd quarter valued at $89,000. Opaleye Management Inc. bought a new position in Verastem in the 2nd quarter worth $6,876,000. Finally, Bank of New York Mellon Corp bought a new position in Verastem in the 2nd quarter worth $706,000. 88.37% of the stock is currently owned by institutional investors.

About Verastem

Verastem, operating as Verastem Oncology, is a biopharmaceutical company focused on developing and commercializing targeted therapies for cancer. The company's research is centered on tumors driven by abnormalities in the RAS/MAPK signaling pathway, which can promote cancer-cell growth and resistance to treatment.

Verastem's leading product candidates include avutometinib, an oral RAF/MEK clamp designed to inhibit signaling within the RAS/MAPK pathway, and defactinib, an oral focal adhesion kinase inhibitor.

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