Verastem (NASDAQ:VSTM) Shares Up 8% on Analyst Upgrade

Key Points

• Verastem shares rose 8% after BTIG Research increased its price target from $18 to $24 and maintained a Buy rating. The stock traded near $8.33 on volume roughly 75% above its average.
• Analyst sentiment remains broadly positive, with 10 Buy ratings, one Hold, and one Sell; the consensus rating is Moderate Buy with an average price target of $16.50.
• CEO Dan Paterson sold 44,121 shares for approximately $353,000 under a pre-arranged Rule 10b5-1 plan, reducing his direct holdings by 6.33%; insiders have sold about $381,000 of stock over the past 90 days.

Verastem, Inc. (NASDAQ:VSTM - Get Free Report)'s share price was up 8% during mid-day trading on Thursday after BTIG Research raised their price target on the stock from $18.00 to $24.00. BTIG Research currently has a buy rating on the stock. Verastem traded as high as $8.30 and last traded at $8.3270. Approximately 4,269,684 shares traded hands during mid-day trading, an increase of 75% from the average daily volume of 2,440,139 shares. The stock had previously closed at $7.71.

Several other research analysts also recently commented on VSTM. Wall Street Zen upgraded Verastem from a "sell" rating to a "hold" rating in a report on Sunday, September 27th. Cantor Fitzgerald restated an "overweight" rating on shares of Verastem in a report on Monday, September 28th. Mizuho set a $13.00 price target on Verastem and gave the stock an "outperform" rating in a research report on Monday, August 10th. Jefferies Financial Group restated a "buy" rating and set a $13.00 price target on shares of Verastem in a research report on Wednesday. Finally, Guggenheim set a $12.00 price objective on Verastem and gave the company a "buy" rating in a research report on Friday, August 7th. Ten investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Verastem has a consensus rating of "Moderate Buy" and an average target price of $16.50.

Insider Buying and Selling at Verastem

In related news, CEO Dan Paterson sold 44,121 shares of the firm's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $8.00, for a total value of $352,968.00. Following the sale, the chief executive officer directly owned 652,712 shares of the company's stock, valued at $5,221,696. This trade represents a 6.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 48,044 shares of company stock worth $381,484 in the last ninety days. Corporate insiders own 1.94% of the company's stock.

Key Verastem News

Here are the key news stories impacting Verastem this week:

• Positive Sentiment: BTIG Research raised its price target on Verastem from $18 to $24 and assigned a “Buy” rating, implying substantial potential upside from recent trading levels. This upgrade reflects increased confidence in the company’s pipeline and clinical prospects.
• Positive Sentiment: Verastem reported encouraging results for VS-7375 in advanced KRAS G12D-mutated pancreatic, lung and colorectal cancers. The treatment produced a 50% confirmed overall response rate in second-line pancreatic ductal adenocarcinoma, including two complete responses in second-line-or-later disease. VS-7375 clinical data
• Positive Sentiment: The company raised approximately $250 million, strengthening its balance sheet ahead of planned Phase III development for VS-7375. The proceeds could reduce near-term funding risk and support regulatory and commercial preparation. Verastem $250 million offering
• Neutral Sentiment: Michael Bailey will become president and CEO on January 1, 2027, succeeding Daniel Paterson, who is retiring. The planned transition provides leadership continuity, although investors will monitor execution under the new CEO. CEO transition announcement
• Negative Sentiment: The financing involves roughly 30.9 million new shares priced at $8.00, plus pre-funded warrants, creating meaningful dilution for existing shareholders. The offering may weigh on the stock even as it improves Verastem’s ability to fund late-stage trials.

Hedge Funds Weigh In On Verastem

Several hedge funds have recently made changes to their positions in VSTM. Armistice Capital LLC boosted its stake 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 purchasing an additional 1,440,000 shares in the last quarter. AIGH Capital Management LLC purchased a new position in shares of Verastem during the 1st quarter worth approximately $10,600,000. Opaleye Management Inc. purchased a new position in shares of Verastem during the 2nd quarter worth approximately $6,876,000. Exome Asset Management LLC raised its position in shares of Verastem by 58.5% in the 1st quarter. Exome Asset Management LLC now owns 636,700 shares of the biopharmaceutical company's stock worth $3,375,000 after acquiring an additional 234,957 shares in the last quarter. Finally, Hennion & Walsh Asset Management Inc. raised its position in shares of Verastem by 157.2% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 569,195 shares of the biopharmaceutical company's stock worth $2,174,000 after acquiring an additional 347,872 shares in the last quarter. 88.37% of the stock is owned by hedge funds and other institutional investors.

Verastem Price Performance

The stock has a market cap of $779.09 million, a P/E ratio of -3.24 and a beta of 0.39. 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 firm has a 50-day moving average price of $7.54 and a 200-day moving average price of $5.91.

Verastem (NASDAQ:VSTM - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) earnings per share for the quarter, beating the consensus estimate of ($0.43) by $0.08. The company had revenue of $40.08 million for the quarter, compared to analyst estimates of $22.88 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 -1.55 earnings per share for the current fiscal year.

Verastem Company Profile

Verastem Oncology NASDAQ: VSTM is a biopharmaceutical company focused on developing and commercializing targeted therapies for cancers driven by abnormalities in the RAS/MAPK signaling pathway. The company's research is aimed at addressing cancers with limited treatment options, including ovarian cancer and other solid tumors.

Verastem's lead product, avutometinib, is a treatment targeting the RAF/MEK signaling pathway and is marketed in the United States under the brand name Avmapki for certain patients with recurrent low-grade serous ovarian cancer.

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