Verastem (NASDAQ:VSTM) Trading Down 4.1% - Here's Why

Key Points

• Shares fell 4.1% to $6.31 on Monday with 477,526 shares traded, roughly 76% below the average session volume.
• Analysts are mixed but the consensus rating is a "Moderate Buy" with a consensus price target of $16.60, as individual targets and ratings range from sell to strong buy.
• Verastem reported Q EPS of -$0.50 (missed by $0.01) and revenue of $17.54M (beat estimates); the company has a market cap of about $573M and analysts expect FY EPS around -3.02.

Shares of Verastem, Inc. (NASDAQ:VSTM - Get Free Report) traded down 4.1% on Monday . The stock traded as low as $6.29 and last traded at $6.31. 477,526 shares traded hands during trading, a decline of 76% from the average session volume of 1,966,419 shares. The stock had previously closed at $6.58.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on VSTM shares. Weiss Ratings restated a "sell (d-)" rating on shares of Verastem in a research report on Wednesday, January 21st. Guggenheim reiterated a "buy" rating on shares of Verastem in a research note on Tuesday, December 30th. Mizuho set a $18.00 target price on shares of Verastem in a report on Thursday, February 19th. Jefferies Financial Group restated a "buy" rating and issued a $15.00 target price (down from $19.00) on shares of Verastem in a research note on Monday, March 30th. Finally, Wall Street Zen lowered Verastem from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Two analysts have rated the stock with a Strong Buy rating, five have issued 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 company currently has a consensus rating of "Moderate Buy" and a consensus price target of $16.60.

Verastem Trading Down 0.9%

The firm's fifty day moving average price is $5.77 and its 200-day moving average price is $7.41. The company has a market cap of $572.98 million, a price-to-earnings ratio of -2.03 and a beta of 0.43. The company has a debt-to-equity ratio of 1.33, a current ratio of 3.09 and a quick ratio of 3.07.

Verastem (NASDAQ:VSTM - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The biopharmaceutical company reported ($0.50) earnings per share for the quarter, missing analysts' consensus estimates 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. On average, equities analysts expect that Verastem, Inc. will post -3.02 EPS for the current fiscal year.

Hedge Funds Weigh In On Verastem

Hedge funds and other institutional investors have recently made changes to their positions in the business. Russell Investments Group Ltd. grew its holdings in Verastem by 182.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company's stock worth $40,000 after buying an additional 2,960 shares in the last quarter. E Fund Management Co. Ltd. bought a new stake in Verastem during the 2nd quarter valued at $49,000. Nebula Research & Development LLC acquired a new position in Verastem during the 2nd quarter worth $53,000. The Manufacturers Life Insurance Company boosted its position in Verastem by 9.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company's stock worth $67,000 after acquiring an additional 1,440 shares during the period. Finally, BNP Paribas Financial Markets grew its stake in shares of Verastem by 110.9% in the third quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company's stock worth $75,000 after purchasing an additional 4,496 shares in the last quarter. 88.37% of the stock is currently owned by institutional investors and hedge funds.

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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