Verastem (NASDAQ:VSTM) Stock Price Up 6% - Still a Buy?

Key Points

• Verastem shares rose 6% on Thursday, trading as high as $6.25 after closing at $5.89, though volume was well below average.
• Analysts remain mostly positive, with several firms maintaining buy/outperform ratings; the stock’s average price target is $14.40, despite some recent target cuts.
• The company has strong institutional ownership, with hedge funds and other investors holding 88.37% of shares, while CEO Dan Paterson recently sold stock under a pre-arranged trading plan.

Shares of Verastem, Inc. (NASDAQ:VSTM - Get Free Report) traded up 6% on Thursday . The company traded as high as $6.25 and last traded at $6.2450. 890,973 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 2,263,007 shares. The stock had previously closed at $5.89.

Analyst Ratings Changes

A number of equities research analysts have issued reports on VSTM shares. Mizuho cut their price target on Verastem from $16.00 to $14.00 and set an "outperform" rating for the company in a research note on Thursday, May 14th. Weiss Ratings cut shares of Verastem from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, June 17th. Royal Bank Of Canada set a $14.00 price target on shares of Verastem and gave the stock an "outperform" rating in a research report on Tuesday, July 7th. Jefferies Financial Group decreased their target price on Verastem from $15.00 to $8.00 and set a "buy" rating on the stock in a report on Tuesday, June 23rd. Finally, BTIG Research reiterated a "buy" rating and set a $18.00 target price on shares of Verastem in a research report on Thursday, July 2nd. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $14.40.

Verastem Stock Up 4.7%

The company has a debt-to-equity ratio of 0.89, a quick ratio of 3.00 and a current ratio of 3.04. The company's 50-day moving average price is $4.44 and its 200 day moving average price is $5.46. The stock has a market capitalization of $541.72 million, a P/E ratio of -2.28 and a beta of 0.29.

Insider Transactions at Verastem

In related news, CEO Dan Paterson sold 20,871 shares of the business's stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $4.18, for a total value of $87,240.78. Following the transaction, the chief executive officer directly owned 591,242 shares of the company's stock, valued at approximately $2,471,391.56. The trade was a 3.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.94% of the company's stock.

Hedge Funds Weigh In On Verastem

Hedge funds have recently modified their holdings of the stock. Polar Capital Holdings Plc lifted its stake 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 worth $30,302,000 after purchasing an additional 2,866,350 shares in the last quarter. AIGH Capital Management LLC purchased a new position in shares of Verastem during the first quarter valued at about $10,600,000. Farallon Capital Management LLC bought a new stake in shares of Verastem in the fourth quarter worth about $15,440,000. SymBiosis Capital Partners LLC bought a new stake in shares of Verastem in the fourth quarter worth about $15,440,000. Finally, Armistice Capital LLC lifted its position in shares of Verastem by 68.7% in the fourth quarter. Armistice Capital LLC now owns 3,536,000 shares of the biopharmaceutical company's stock worth $27,298,000 after buying an additional 1,440,000 shares in the last quarter. Hedge funds and other institutional investors own 88.37% of the company's stock.

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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