Verastem, Inc. (NASDAQ:VSTM) Sees Large Increase in Short Interest

Key Points

• Verastem, Inc. experienced a massive increase in short interest, totaling 18,110,000 shares as of July 15, representing a staggering 48,978.6% rise from June 30.
• Despite the spike in short interest, Verastem's stock price remained stable at $6.17, with a market cap of $339.04 million and a 1-year high of $9.10.
• Analyst consensus rating for Verastem is currently a "Moderate Buy", with eight buy ratings and a price target of $13.38.

Verastem, Inc. (NASDAQ:VSTM - Get Free Report) was the target of a large increase in short interest during the month of July. As of July 15th, there was short interest totaling 18,110,000 shares, anincreaseof48,978.6% from the June 30th total of 36,900 shares. Based on an average daily volume of 2,250,000 shares, the days-to-cover ratio is presently 8.0 days. Approximately37.0% of the shares of the stock are short sold. Approximately37.0% of the shares of the stock are short sold. Based on an average daily volume of 2,250,000 shares, the days-to-cover ratio is presently 8.0 days.

Verastem Stock Performance

Shares of NASDAQ:VSTM remained flat at $6.17 during mid-day trading on Friday. 1,155,070 shares of the company were exchanged, compared to its average volume of 1,675,429. The company has a market cap of $339.04 million, a price-to-earnings ratio of -1.92 and a beta of 0.71. The stock has a fifty day moving average of $5.60 and a 200 day moving average of $6.01. Verastem has a 1-year low of $2.10 and a 1-year high of $9.10.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its quarterly earnings results on Tuesday, May 13th. The biopharmaceutical company reported ($0.96) earnings per share for the quarter, missing analysts' consensus estimates of ($0.72) by ($0.24). On average, equities research analysts expect that Verastem will post -3.02 EPS for the current fiscal year.

Analyst Ratings Changes

VSTM has been the topic of a number of research analyst reports. HC Wainwright increased their price objective on shares of Verastem from $10.00 to $14.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Royal Bank Of Canada raised shares of Verastem from an "outperform" rating to a "moderate buy" rating and decreased their price objective for the stock from $16.00 to $12.00 in a report on Wednesday, June 25th. Mizuho decreased their price objective on shares of Verastem from $9.00 to $8.00 and set an "outperform" rating on the stock in a report on Wednesday, April 9th. Jefferies Financial Group started coverage on shares of Verastem in a research report on Thursday, April 10th. They set a "buy" rating and a $15.00 target price on the stock. Finally, Wall Street Zen downgraded shares of Verastem from a "hold" rating to a "sell" rating in a research report on Friday, April 18th. One investment analyst has rated the stock with a sell rating and eight have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.38.

Insider Activity

In other news, CFO Daniel Calkins sold 11,143 shares of the company's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $8.13, for a total value of $90,592.59. Following the sale, the chief financial officer owned 114,055 shares of the company's stock, valued at approximately $927,267.15. This represents a 8.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Dan Paterson sold 17,808 shares of the company's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $5.13, for a total transaction of $91,355.04. Following the completion of the sale, the chief executive officer directly owned 443,839 shares in the company, valued at approximately $2,276,894.07. The trade was a 3.86% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 93,796 shares of company stock worth $693,033. 2.10% of the stock is owned by insiders.

Institutional Trading of Verastem

Several hedge funds have recently bought and sold shares of VSTM. Geode Capital Management LLC raised its holdings in Verastem by 6.5% during the 4th quarter. Geode Capital Management LLC now owns 948,790 shares of the biopharmaceutical company's stock worth $4,906,000 after buying an additional 58,191 shares during the period. Wells Fargo & Company MN raised its holdings in shares of Verastem by 41.3% in the fourth quarter. Wells Fargo & Company MN now owns 20,571 shares of the biopharmaceutical company's stock valued at $106,000 after purchasing an additional 6,012 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Verastem by 18.4% in the fourth quarter. Invesco Ltd. now owns 14,680 shares of the biopharmaceutical company's stock valued at $76,000 after purchasing an additional 2,281 shares during the last quarter. DRW Securities LLC acquired a new stake in shares of Verastem in the fourth quarter valued at approximately $160,000. Finally, Barclays PLC raised its holdings in shares of Verastem by 10.3% in the fourth quarter. Barclays PLC now owns 61,445 shares of the biopharmaceutical company's stock valued at $318,000 after purchasing an additional 5,737 shares during the last quarter. 88.37% of the stock is currently owned by institutional investors and hedge funds.

Verastem Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.