Verastem (NASDAQ:VSTM) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Verastem from a "hold" to a "sell," even though the broader analyst mix still averages a Moderate Buy with an average target price of $16.60.
• The stock opened at $5.31 (down ~5%), has a $466M market cap and a 12‑month range of $4.01–$11.24; Verastem reported Q earnings of ($0.50) vs. ($0.49) expected and analysts forecast ~‑3.02 EPS for the year.
• Company insiders (including the CEO and CFO) sold shares in January—16,330 shares worth $116,467 in the last three months—while institutional investors hold about 88.37% of the stock after several large position increases.

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

Other analysts have also recently issued reports about the stock. HC Wainwright reissued a "buy" rating and set a $18.00 price objective on shares of Verastem in a research note on Friday. Guggenheim reaffirmed a "buy" rating on shares of Verastem in a research report on Tuesday, December 30th. BTIG Research reiterated a "buy" rating and issued a $19.00 target price on shares of Verastem in a report on Friday. Weiss Ratings reissued a "sell (d-)" rating on shares of Verastem in a research report on Wednesday, January 21st. Finally, Jefferies Financial Group restated a "buy" rating and issued a $15.00 price objective (down from $19.00) on shares of Verastem in a report on Monday, March 30th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $16.60.

Verastem Trading Down 5.0%

NASDAQ VSTM opened at $5.31 on Friday. The company has a market cap of $466.38 million, a P/E ratio of -1.66 and a beta of 0.43. Verastem has a 12 month low of $4.01 and a 12 month high of $11.24. The company has a debt-to-equity ratio of 1.33, a current ratio of 3.09 and a quick ratio of 3.07. The company has a 50-day moving average of $5.80 and a 200-day moving average of $7.52.

Verastem (NASDAQ:VSTM - Get Free Report) last released 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). The company had revenue of $17.54 million for the quarter, compared to analyst estimates of $16.85 million. As a group, equities analysts predict that Verastem will post -3.02 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Daniel Calkins sold 5,039 shares of the company's stock in a transaction 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 directly owned 104,719 shares of the company's stock, valued at approximately $749,788.04. This represents a 4.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Dan Paterson sold 10,321 shares of the stock in a transaction on Monday, January 12th. The shares were sold at an average price of $7.16, for a total value of $73,898.36. Following the completion of the sale, the chief executive officer owned 400,104 shares of the company's stock, valued at approximately $2,864,744.64. This represents a 2.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 16,330 shares of company stock worth $116,467. Insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings 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 worth $30,302,000 after acquiring an additional 2,866,350 shares during the period. Farallon Capital Management LLC purchased a new stake in shares of Verastem during the fourth quarter valued at approximately $15,440,000. SymBiosis Capital Partners LLC purchased a new stake in shares of Verastem during the fourth quarter valued at approximately $15,440,000. Armistice Capital LLC lifted its position in shares of Verastem by 68.7% during the fourth quarter. Armistice Capital LLC now owns 3,536,000 shares of the biopharmaceutical company's stock worth $27,298,000 after purchasing an additional 1,440,000 shares in the last quarter. Finally, Foresite Capital Management VI LLC lifted its position in shares of Verastem by 104.9% during the third quarter. Foresite Capital Management VI LLC now owns 2,615,120 shares of the biopharmaceutical company's stock worth $23,092,000 after purchasing an additional 1,338,600 shares in the last quarter. Institutional investors and hedge funds own 88.37% of the company's stock.

About Verastem

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.