Verastem, Inc. (NASDAQ:VSTM) Receives $13.29 Consensus Target Price from Analysts

Key Points

• Analysts have given Verastem, Inc. (NASDAQ: VSTM) a consensus rating of "Buy," with an average twelve-month target price of $13.29 among the firms covering the company.
• CEO Dan Paterson recently sold 17,808 shares of the company at an average price of $5.13, decreasing his ownership by 3.86% but still retaining over $2.2 million in shares.
• Verastem reported a quarterly loss of ($0.39) EPS, which was better than the consensus estimate of ($0.64) EPS, but revenue fell short at $2.14 million compared to the expected $6.01 million.

Shares of Verastem, Inc. (NASDAQ:VSTM - Get Free Report) have received an average recommendation of "Buy" from the nine research firms that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $13.2857.

Several research firms recently commented on VSTM. Wall Street Zen cut shares of Verastem from a "hold" rating to a "sell" rating in a research report on Saturday. B. Riley upgraded Verastem to a "strong-buy" rating in a report on Monday, August 25th. BTIG Research reaffirmed a "buy" rating and set a $20.00 price objective on shares of Verastem in a research report on Tuesday, September 9th. Royal Bank Of Canada lifted their target price on Verastem from $12.00 to $13.00 and gave the company an "outperform" rating in a research report on Friday, August 8th. Finally, Zacks Research raised Verastem to a "hold" rating in a research report on Tuesday, August 12th.

Insider Buying and Selling

In related news, CEO Dan Paterson sold 17,808 shares of the firm's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $5.13, for a total value of $91,355.04. Following the completion of the transaction, the chief executive officer owned 443,839 shares of the company's stock, 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 document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders have sold a total of 23,275 shares of company stock worth $120,296 in the last ninety days. Corporate insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Verastem

Hedge funds have recently modified their holdings of the stock. Tower Research Capital LLC TRC raised its holdings in 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 acquiring an additional 1,698 shares in the last quarter. Stifel Financial Corp increased its position in shares of Verastem by 30.5% during the 4th quarter. Stifel Financial Corp now owns 39,593 shares of the biopharmaceutical company's stock worth $205,000 after purchasing an additional 9,254 shares during the last quarter. Voya Investment Management LLC bought a new stake in shares of Verastem during the 4th quarter worth approximately $59,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Verastem in the 4th quarter valued at approximately $74,000. Finally, Northern Trust Corp boosted its holdings in shares of Verastem by 18.4% in the 4th quarter. Northern Trust Corp now owns 339,264 shares of the biopharmaceutical company's stock valued at $1,754,000 after buying an additional 52,657 shares during the last quarter. Institutional investors own 88.37% of the company's stock.

Verastem Stock Down 7.0%

Shares of VSTM traded down $0.69 on Thursday, hitting $9.13. The company's stock had a trading volume of 1,848,735 shares, compared to its average volume of 2,524,959. The firm's fifty day moving average price is $7.45 and its 200-day moving average price is $6.66. Verastem has a fifty-two week low of $2.54 and a fifty-two week high of $11.24. 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 firm has a market capitalization of $561.86 million, a price-to-earnings ratio of -2.78 and a beta of 0.93.

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

About Verastem

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.