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

Key Points

• Wall Street Zen upgraded Verastem from “sell” to “hold”, adding to a mixed analyst picture that still leans positive overall.
• Other firms remain bullish: BTIG cut its price target to $18 but kept a buy rating, while the consensus among analysts is a Moderate Buy with an average price target of $16.40.
• Verastem shares were down 13.6% and opened at $4.89; the company also reported a slightly wider-than-expected quarterly loss and continues to operate with negative profitability metrics.

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.

A number of other equities analysts have also weighed in on VSTM. BTIG Research lowered their price target on shares of Verastem from $19.00 to $18.00 and set a "buy" rating on the stock in a research report on Friday. Alliance Global Partners restated a "buy" rating on shares of Verastem in a research report on Friday. HC Wainwright restated a "buy" rating and set a $18.00 price target on shares of Verastem in a research report on Friday, April 10th. Weiss Ratings lowered shares of Verastem from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday. Finally, Jefferies Financial Group restated a "buy" rating and set a $15.00 price target (down from $19.00) on shares of Verastem in a research report on Monday, March 30th. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $16.40.

Verastem Stock Down 13.6%

Shares of NASDAQ VSTM opened at $4.89 on Friday. The company's 50-day simple moving average is $5.74 and its 200-day simple moving average is $7.14. Verastem has a 52-week low of $4.01 and a 52-week high of $11.24. The firm has a market cap of $429.54 million, a price-to-earnings ratio of -1.81 and a beta of 0.34. The company has a quick ratio of 3.07, a current ratio of 3.09 and a debt-to-equity ratio of 1.33.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its earnings results on Wednesday, March 4th. The biopharmaceutical company reported ($0.50) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.49) by ($0.01). Verastem had a negative net margin of 391.17% and a negative return on equity of 748.62%. The company had revenue of $17.54 million during the quarter, compared to analyst estimates of $16.85 million. Equities analysts predict that Verastem will post -1.71 EPS for the current fiscal year.

Hedge Funds Weigh In On Verastem

Several institutional investors and hedge funds have recently bought and sold shares of VSTM. Polar Capital Holdings Plc boosted its holdings in Verastem by 270.7% in the 4th quarter. Polar Capital Holdings Plc now owns 3,925,126 shares of the biopharmaceutical company's stock valued at $30,302,000 after purchasing an additional 2,866,350 shares during the last quarter. AIGH Capital Management LLC acquired a new position in Verastem in the 1st quarter valued at about $10,600,000. Farallon Capital Management LLC acquired a new position in Verastem in the 4th quarter valued at about $15,440,000. SymBiosis Capital Partners LLC acquired a new position in Verastem in the 4th quarter valued at about $15,440,000. Finally, Armistice Capital LLC raised its stake in shares of Verastem by 68.7% in the 4th quarter. Armistice Capital LLC now owns 3,536,000 shares of the biopharmaceutical company's stock valued at $27,298,000 after acquiring an additional 1,440,000 shares during the period. 88.37% of the stock is currently owned by institutional investors and hedge funds.

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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