Verastem (NASDAQ:VSTM) Sees Strong Trading Volume - Should You Buy?

Key Points

• Verastem shares rose 4.5% to $7.8450 amid unusually high trading volume, with about 3.14 million shares changing hands—43% above the prior session.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $13.83, although individual targets range from $8 to $18.
• The company exceeded quarterly expectations, reporting a narrower-than-expected loss of $0.35 per share and revenue of $40.08 million versus the $22.88 million consensus, but it continues to post substantial negative margins and return on equity.

Verastem, Inc. (NASDAQ:VSTM - Get Free Report) shares saw unusually-high trading volume on Wednesday . Approximately 3,140,160 shares changed hands during trading, an increase of 43% from the previous session's volume of 2,199,969 shares.The stock last traded at $7.8450 and had previously closed at $7.61.

Wall Street Analyst Weigh In

VSTM has been the subject of a number of analyst reports. BTIG Research reiterated a "buy" rating and issued a $18.00 price objective on shares of Verastem in a research report on Thursday, July 2nd. Guggenheim set a $12.00 price target on Verastem and gave the stock a "buy" rating in a report on Friday, August 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 report on Tuesday, June 23rd. HC Wainwright reissued a "buy" rating and issued a $18.00 price objective on shares of Verastem in a report on Wednesday, June 24th. Finally, Alliance Global Partners restated a "buy" rating on shares of Verastem in a research report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Verastem has an average rating of "Moderate Buy" and an average price target of $13.83.

Verastem Stock Up 4.5%

The company has a current ratio of 2.25, a quick ratio of 2.22 and a debt-to-equity ratio of 1.48. The business has a fifty day simple moving average of $5.92 and a two-hundred day simple moving average of $5.45. The company has a market cap of $720.40 million, a PE ratio of -2.99 and a beta of 0.32.

Verastem (NASDAQ:VSTM - Get Free Report) last issued its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) EPS for the quarter, beating analysts' consensus estimates of ($0.43) by $0.08. Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%. The business had revenue of $40.08 million during the quarter, compared to analysts' expectations of $22.88 million. As a group, equities research analysts predict that Verastem, Inc. will post -1.56 earnings per share for the current year.

Insider Transactions at Verastem

In other Verastem news, CEO Dan Paterson sold 20,871 shares of the firm's stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $4.18, for a total value of $87,240.78. Following the completion of the sale, the chief executive officer directly owned 591,242 shares of the company's stock, valued at $2,471,391.56. This trade represents a 3.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 26,262 shares of company stock valued at $111,897. 1.94% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. RTW Investments LP boosted its holdings in Verastem by 21.2% in the 4th quarter. RTW Investments LP now owns 6,576,306 shares of the biopharmaceutical company's stock valued at $50,769,000 after purchasing an additional 1,150,000 shares during the last quarter. Polar Capital Holdings Plc increased its holdings in shares of Verastem by 270.7% during the 4th quarter. Polar Capital Holdings Plc now owns 3,925,126 shares of the biopharmaceutical company's stock worth $30,302,000 after buying an additional 2,866,350 shares during the last quarter. Armistice Capital LLC raised its position in shares of Verastem by 68.7% during the 4th quarter. Armistice Capital LLC now owns 3,536,000 shares of the biopharmaceutical company's stock valued at $27,298,000 after buying an additional 1,440,000 shares during the period. Vanguard Group Inc. raised its position in shares of Verastem by 1.6% during the 3rd quarter. Vanguard Group Inc. now owns 3,479,011 shares of the biopharmaceutical company's stock valued at $30,720,000 after buying an additional 55,394 shares during the period. Finally, State Street Corp lifted its holdings in Verastem by 44.5% in the fourth quarter. State Street Corp now owns 3,219,295 shares of the biopharmaceutical company's stock valued at $24,853,000 after acquiring an additional 990,655 shares during the last quarter. Institutional investors and hedge funds own 88.37% of the company's stock.

About Verastem

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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