Verastem, Inc. (NASDAQ:VSTM) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Verastem, Inc. has received a consensus recommendation of "Moderate Buy" from analysts, with eight out of nine ratings leaning towards a buy.
• The average 12-month target price set by brokerages for Verastem is $13.29, with several analysts recently raising their price targets.
• In recent insider trading, CEO Dan Paterson sold 17,808 shares, reducing his ownership by 3.86%, highlighting a notable executive sell-off.

Shares of Verastem, Inc. (NASDAQ:VSTM - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the nine research firms that are covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company. The average 12-month target price among analysts that have covered the stock in the last year is $13.2857.

Several research analysts have weighed in on VSTM shares. Royal Bank Of Canada boosted their price target on Verastem from $12.00 to $13.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. Wall Street Zen raised Verastem from a "sell" rating to a "hold" rating in a research report on Sunday, August 10th. HC Wainwright boosted their price target on Verastem from $10.00 to $14.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Finally, Zacks Research raised Verastem to a "hold" rating in a report on Tuesday, August 12th.

Verastem Stock Up 3.7%

Verastem stock traded up $0.31 during midday trading on Friday, reaching $8.63. The stock had a trading volume of 2,878,179 shares, compared to its average volume of 3,107,346. The firm's fifty day simple moving average is $5.72 and its 200-day simple moving average is $6.18. Verastem has a 1-year low of $2.34 and a 1-year high of $9.10. The stock has a market capitalization of $531.09 million, a P/E ratio of -2.63 and a beta of 0.83. The company has a debt-to-equity ratio of 2.06, a quick ratio of 3.44 and a current ratio of 3.46.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its earnings results on Thursday, August 7th. The biopharmaceutical company reported ($0.39) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.64) by $0.25. The firm had revenue of $2.14 million during the quarter, compared to analyst estimates of $6.01 million. As a group, analysts expect that Verastem will post -3.02 EPS for the current fiscal year.

Insider Buying and Selling at Verastem

In related news, CEO Dan Paterson sold 17,808 shares of the business's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $5.13, for a total transaction of $91,355.04. Following the transaction, the chief executive officer directly owned 443,839 shares of the company's stock, valued at approximately $2,276,894.07. The trade was a 3.86% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last quarter, insiders sold 24,488 shares of company stock worth $127,149. 2.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Tower Research Capital LLC TRC boosted its stake in Verastem by 51.5% in the 4th quarter. Tower Research Capital LLC TRC now owns 4,997 shares of the biopharmaceutical company's stock valued at $26,000 after purchasing an additional 1,698 shares during the period. ProShare Advisors LLC bought a new stake in Verastem in the 4th quarter valued at $56,000. Voya Investment Management LLC bought a new stake in Verastem in the 4th quarter valued at $59,000. E Fund Management Co. Ltd. bought a new stake in Verastem in the 2nd quarter valued at $49,000. Finally, Sherbrooke Park Advisers LLC bought a new stake in Verastem in the 4th quarter valued at $61,000. 88.37% of the stock is owned by institutional investors and hedge funds.

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.