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

Key Points

• Wall Street Zen downgraded Verastem from “hold” to “sell,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $13.83.
• Verastem shares opened at $6.58, while the company’s latest quarterly results beat expectations, reporting a loss of $0.35 per share versus the $0.43 consensus estimate and revenue of $40.08 million versus $22.88 million expected.
• Institutional investors own 88.37% of Verastem and several major firms increased their positions, while insiders—including the CEO—sold shares during the latest quarter.

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

VSTM has been the subject of several other reports. Alliance Global Partners reiterated a "buy" rating on shares of Verastem in a research note on Friday, May 8th. Royal Bank Of Canada set a $14.00 price target on Verastem and gave the company an "outperform" rating in a research note on Tuesday, July 7th. Mizuho set a $13.00 price objective on shares of Verastem and gave the stock an "outperform" rating in a research report on Monday. Weiss Ratings cut shares of Verastem from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, June 17th. Finally, HC Wainwright reiterated a "buy" rating and issued a $18.00 price objective on shares of Verastem in a report on Wednesday, June 24th. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Verastem currently has an average rating of "Moderate Buy" and a consensus target price of $13.83.

Verastem Trading Down 1.3%

Shares of NASDAQ:VSTM opened at $6.58 on Friday. Verastem has a 52-week low of $3.43 and a 52-week high of $11.24. The company has a debt-to-equity ratio of 1.48, a quick ratio of 3.00 and a current ratio of 2.25. The company has a market capitalization of $595.88 million, a P/E ratio of -2.47 and a beta of 0.26. The company has a 50-day simple moving average of $5.16 and a 200 day simple moving average of $5.39.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) earnings per share for the quarter, topping analysts' consensus estimates of ($0.43) by $0.08. The firm had revenue of $40.08 million for the quarter, compared to the consensus estimate of $22.88 million. Verastem had a negative return on equity of 467.49% and a negative net margin of 231.59%. Sell-side analysts forecast that Verastem will post -1.6 earnings per share for the current year.

Insider Activity at Verastem

In other news, CEO Dan Paterson sold 20,871 shares of Verastem stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $4.18, for a total value of $87,240.78. Following the completion of the sale, the chief executive officer directly owned 591,242 shares in the company, valued at approximately $2,471,391.56. The trade was a 3.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 26,262 shares of company stock worth $111,897 over the last quarter. 1.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Verastem

Large investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC increased its stake in Verastem by 78.2% during the 1st quarter. AQR Capital Management LLC now owns 62,603 shares of the biopharmaceutical company's stock worth $377,000 after acquiring an additional 27,477 shares during the period. Goldman Sachs Group Inc. lifted its position in shares of Verastem by 236.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 756,402 shares of the biopharmaceutical company's stock valued at $4,561,000 after acquiring an additional 531,873 shares during the period. Geode Capital Management LLC lifted its position in shares of Verastem by 24.9% during the 2nd quarter. Geode Capital Management LLC now owns 1,199,259 shares of the biopharmaceutical company's stock valued at $4,978,000 after acquiring an additional 238,995 shares during the period. Rhumbline Advisers grew its holdings in shares of Verastem by 19.2% during the 2nd quarter. Rhumbline Advisers now owns 59,553 shares of the biopharmaceutical company's stock worth $247,000 after purchasing an additional 9,594 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in shares of Verastem by 40.0% during the 2nd quarter. Invesco Ltd. now owns 52,063 shares of the biopharmaceutical company's stock worth $216,000 after purchasing an additional 14,879 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.

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