Verastem (NASDAQ:VSTM) Raised to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Verastem from "sell" to "hold," while analyst consensus remains a "Moderate Buy" with an average price target of $17 and mixed individual targets ranging roughly $18–$19.
• Verastem missed quarterly EPS expectations (‑$0.50 vs. ‑$0.49) but posted revenue of $17.54M versus estimates of $16.85M; the stock trades around $6.39 with a $426.7M market cap and a 12‑month range of $4.01–$11.24.
• Company insiders (including the CEO and CFO) sold shares in January—total insider sales of 21,678 shares last quarter—while institutional investors own about 88.4% of the stock.

Verastem (NASDAQ:VSTM - Get Free Report) was upgraded by analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Several other research firms have also commented on VSTM. Weiss Ratings reissued a "sell (d-)" rating on shares of Verastem in a research note on Wednesday, January 21st. Mizuho set a $18.00 target price on shares of Verastem in a report on Thursday, February 19th. Jefferies Financial Group reissued a "buy" rating and issued a $19.00 price target on shares of Verastem in a research report on Thursday. HC Wainwright initiated coverage on Verastem in a research note on Wednesday, February 4th. They issued a "buy" rating and a $18.00 price target on the stock. Finally, Zacks Research lowered Verastem from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, November 18th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $17.00.

Verastem Trading Up 3.9%

NASDAQ VSTM opened at $6.39 on Friday. The firm has a market capitalization of $426.72 million, a PE ratio of -2.00 and a beta of 0.40. The stock's 50 day moving average is $6.50 and its 200 day moving average is $8.18. Verastem has a twelve month low of $4.01 and a twelve month high of $11.24. The company has a quick ratio of 2.55, a current ratio of 3.09 and a debt-to-equity ratio of 1.33.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its quarterly earnings data on Wednesday, March 4th. The biopharmaceutical company reported ($0.50) EPS for the quarter, missing the consensus estimate of ($0.49) by ($0.01). The business had revenue of $17.54 million during the quarter, compared to analyst estimates of $16.85 million. Research analysts forecast that Verastem will post -3.02 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Daniel Calkins sold 5,039 shares of the firm's stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $7.16, for a total transaction of $36,079.24. Following the completion of the sale, the chief financial officer owned 104,719 shares of the company's stock, valued at $749,788.04. This trade represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Dan Paterson sold 10,321 shares of the business's stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $7.16, for a total transaction of $73,898.36. Following the completion of the transaction, the chief executive officer owned 400,104 shares of the company's stock, valued at approximately $2,864,744.64. The trade was a 2.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 21,678 shares of company stock worth $169,825. Corporate insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Russell Investments Group Ltd. boosted its position in shares of Verastem by 182.9% during the third quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company's stock valued at $40,000 after buying an additional 2,960 shares during the last quarter. E Fund Management Co. Ltd. purchased a new stake in shares of Verastem during the 2nd quarter valued at about $49,000. Nebula Research & Development LLC bought a new stake in shares of Verastem in the second quarter worth approximately $53,000. The Manufacturers Life Insurance Company raised its holdings in shares of Verastem by 9.8% during the second quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company's stock valued at $67,000 after purchasing an additional 1,440 shares during the last quarter. Finally, BNP Paribas Financial Markets lifted its position in Verastem by 110.9% during the third quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company's stock valued at $75,000 after purchasing an additional 4,496 shares during the period. 88.37% of the stock is owned by institutional investors.

Verastem Company Profile

Verastem Oncology, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of small molecule therapies that target cancer stemness and resistance pathways. Established in 2010 and headquartered in Needham, Massachusetts, Verastem Oncology applies a precision-medicine approach to identify key signaling nodes responsible for tumor growth and relapse, with an emphasis on hematologic malignancies and solid tumors. The company’s research platform integrates insights into complex signaling networks to advance novel compounds from early discovery through clinical proof of concept.

The company’s lead marketed product is COPIKTRA (duvelisib), an oral inhibitor of PI3K-delta and PI3K-gamma, which received U.S.

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