Verastem, Inc. (NASDAQ:VSTM) Short Interest Update

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) saw a large growth in short interest during the month of July. As of July 15th, there was short interest totaling 18,110,000 shares, agrowthof48,978.6% from the June 30th total of 36,900 shares. Approximately37.0% of the company's stock are short sold. Based on an average daily volume of 2,250,000 shares, the short-interest ratio is currently 8.0 days. Based on an average daily volume of 2,250,000 shares, the short-interest ratio is currently 8.0 days. Approximately37.0% of the company's stock are short sold.

Insider Activity

In related news, CFO Daniel Calkins sold 11,143 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $8.13, for a total transaction of $90,592.59. Following the transaction, the chief financial officer owned 114,055 shares of the company's stock, valued at approximately $927,267.15. This trade represents a 8.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Dan Paterson sold 17,808 shares of the firm's stock in a transaction 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 completion of the sale, the chief executive officer 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. Insiders sold a total of 92,976 shares of company stock valued at $687,047 in the last three months. Insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Verastem

Several hedge funds have recently made changes to their positions in VSTM. ProShare Advisors LLC purchased a new stake in shares of Verastem in the fourth quarter worth $56,000. BNP Paribas Financial Markets purchased a new stake in shares of Verastem in the fourth quarter worth $387,000. Stifel Financial Corp grew its stake in shares of Verastem by 30.5% in the fourth quarter. Stifel Financial Corp now owns 39,593 shares of the biopharmaceutical company's stock worth $205,000 after acquiring an additional 9,254 shares during the last quarter. Wells Fargo & Company MN lifted its holdings in shares of Verastem by 41.3% during 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 in the last quarter. Finally, Voya Investment Management LLC bought a new position in shares of Verastem during the fourth quarter valued at $59,000. 88.37% of the stock is owned by hedge funds and other institutional investors.

Verastem Stock Performance

NASDAQ:VSTM traded down $0.07 during mid-day trading on Tuesday, reaching $5.94. The stock had a trading volume of 474,239 shares, compared to its average volume of 1,668,913. Verastem has a one year low of $2.18 and a one year high of $9.10. The firm has a 50 day moving average price of $5.51 and a two-hundred day moving average price of $6.03. The stock has a market capitalization of $326.56 million, a P/E ratio of -1.85 and a beta of 0.83.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its quarterly earnings data on Tuesday, May 13th. The biopharmaceutical company reported ($0.96) earnings per share for the quarter, missing the consensus estimate of ($0.72) by ($0.24). Research analysts forecast that Verastem will post -3.02 earnings per share for the current year.

Analyst Ratings Changes

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

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.