Verastem (NASDAQ:VSTM) Shares Gap Down - What's Next?

Key Points

• Verastem's stock price gapped down from $9.22 to $9.00 before last trading at $8.23, indicating a significant decrease in value.
• Analysts have set a consensus price target of $13.29 for Verastem, with a general rating of "Moderate Buy" across multiple evaluations.
• The company reported a quarterly loss of $0.39 EPS, exceeding expectations, but revenue of $2.14 million fell short of analyst forecasts of $6.01 million.

Verastem, Inc. (NASDAQ:VSTM - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $9.22, but opened at $9.00. Verastem shares last traded at $8.23, with a volume of 4,057,285 shares.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. BTIG Research reissued a "buy" rating and issued a $20.00 price target on shares of Verastem in a research report on Tuesday, September 9th. Cantor Fitzgerald began coverage on Verastem in a research report on Thursday. They issued an "overweight" rating for the company. Zacks Research raised Verastem to a "hold" rating in a research report on Tuesday, August 12th. Royal Bank Of Canada set a $13.00 price objective on Verastem and gave the stock an "outperform" rating in a research report on Monday. Finally, Wall Street Zen upgraded Verastem from a "sell" rating to a "hold" rating in a research note on Sunday, September 21st. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $13.29.

Verastem Trading Down 13.0%

The firm has a 50-day simple moving average of $9.04 and a 200-day simple moving average of $7.05. The company has a quick ratio of 3.44, a current ratio of 3.46 and a debt-to-equity ratio of 2.06. The stock has a market cap of $493.55 million, a PE ratio of -2.45 and a beta of 0.89.

Verastem (NASDAQ:VSTM - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The biopharmaceutical company reported ($0.39) EPS for the quarter, beating the consensus estimate of ($0.64) by $0.25. The firm had revenue of $2.14 million for the quarter, compared to analysts' expectations of $6.01 million. Equities analysts forecast that Verastem, Inc. will post -3.02 earnings per share for the current year.

Insider Transactions at Verastem

In related news, Director Paul A. Bunn sold 8,333 shares of the business's stock in a transaction dated Thursday, October 9th. The stock was sold at an average price of $9.06, for a total transaction of $75,496.98. Following the completion of the transaction, the director directly owned 8,333 shares in the company, valued at $75,496.98. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 11,005 shares of company stock worth $96,552 over the last three months. 2.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of VSTM. BVF Inc. IL raised its stake in Verastem by 62.1% in the second quarter. BVF Inc. IL now owns 3,404,425 shares of the biopharmaceutical company's stock valued at $14,128,000 after purchasing an additional 1,303,957 shares in the last quarter. Nantahala Capital Management LLC lifted its holdings in shares of Verastem by 28.5% during the 2nd quarter. Nantahala Capital Management LLC now owns 2,954,735 shares of the biopharmaceutical company's stock worth $12,262,000 after acquiring an additional 656,194 shares during the last quarter. Armistice Capital LLC purchased a new position in Verastem in the second quarter worth $8,864,000. Octagon Capital Advisors LP purchased a new position in Verastem in the first quarter worth $10,372,000. Finally, Foresite Capital Management VI LLC bought a new stake in Verastem during the second quarter worth about $5,298,000. Hedge funds and other institutional investors own 88.37% of the company's stock.

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.

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