Verastem (NASDAQ:VSTM) Stock Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Verastem's stock (NASDAQ:VSTM) recently crossed above its 200-day moving average, trading at $8.70 after reaching a high of $9.26.
• Analysts have mixed views on Verastem, with a consensus rating of Moderate Buy and price targets ranging from $12.00 to $20.00.
• The biopharmaceutical company reported a loss per share of ($0.39) for the last quarter, outperforming expectations but falling short on revenue.

Verastem, Inc. (NASDAQ:VSTM - Get Free Report) crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $6.85 and traded as high as $9.26. Verastem shares last traded at $8.70, with a volume of 1,536,488 shares changing hands.

Analysts Set New Price Targets

VSTM has been the topic of several analyst reports. Zacks Research upgraded Verastem to a "hold" rating in a research report on Tuesday, August 12th. Wall Street Zen upgraded Verastem from a "sell" rating to a "hold" rating in a research report on Sunday, September 21st. Royal Bank Of Canada boosted their price objective on Verastem from $12.00 to $13.00 and gave the company an "outperform" rating in a research report on Friday, August 8th. BTIG Research restated a "buy" rating and issued a $20.00 price objective on shares of Verastem in a research report on Tuesday, September 9th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Verastem in a research report on Saturday, September 27th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $13.29.

Verastem Stock Down 3.2%

The company has a debt-to-equity ratio of 2.06, a current ratio of 3.46 and a quick ratio of 3.44. The company has a market capitalization of $535.40 million, a PE ratio of -2.65 and a beta of 0.89. The business has a 50-day moving average of $8.44 and a 200 day moving average of $6.85.

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

Institutional Investors Weigh In On Verastem

Hedge funds have recently made changes to their positions in the company. Goldman Sachs Group Inc. lifted its position in shares of Verastem by 236.9% in the first quarter. Goldman Sachs Group Inc. now owns 756,402 shares of the biopharmaceutical company's stock worth $4,561,000 after buying an additional 531,873 shares in the last quarter. Jefferies Financial Group Inc. purchased a new stake in shares of Verastem in the first quarter worth about $1,631,000. Nuveen LLC purchased a new stake in shares of Verastem in the first quarter worth about $305,000. Bank of America Corp DE increased its stake in Verastem by 18.8% during the fourth quarter. Bank of America Corp DE now owns 77,165 shares of the biopharmaceutical company's stock worth $399,000 after acquiring an additional 12,198 shares during the last quarter. Finally, Squarepoint Ops LLC bought a new stake in Verastem during the fourth quarter worth approximately $92,000. 88.37% of the stock is currently owned by hedge funds and other institutional investors.

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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