Verastem (NASDAQ:VSTM) Trading Down 7.6% - Should You Sell?

Key Points

• Shares of Verastem, Inc. (NASDAQ: VSTM) fell by 7.6%, trading between $8.97 and $9.16 during mid-day trading, compared to a previous close of $9.92.
• Analysts have given Verastem a consensus rating of "Buy" with an average price target of $13.29, indicating potential growth despite recent market movements.
• The company reported a net loss per share of ($0.39) for its latest quarter, surpassing estimates, but its revenue of $2.14 million was below expectations of $6.01 million.

Shares of Verastem, Inc. (NASDAQ:VSTM - Get Free Report) were down 7.6% during mid-day trading on Wednesday . The company traded as low as $8.97 and last traded at $9.16. Approximately 889,259 shares were traded during trading, a decline of 52% from the average daily volume of 1,861,288 shares. The stock had previously closed at $9.92.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on VSTM shares. BTIG Research reiterated a "buy" rating and set a $20.00 price target on shares of Verastem in a research note on Tuesday, September 9th. Royal Bank Of Canada lifted their price target on Verastem from $12.00 to $13.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. Zacks Research upgraded Verastem to a "hold" rating in a research note on Tuesday, August 12th. B. Riley upgraded Verastem to a "strong-buy" rating in a research note on Monday, August 25th. Finally, Wall Street Zen downgraded Verastem from a "hold" rating to a "sell" rating in a research note on Saturday. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, Verastem currently has an average rating of "Buy" and a consensus target price of $13.29.

Verastem Stock Performance

The company's 50-day simple moving average is $7.25 and its 200 day simple moving average is $6.61. The company has a current ratio of 3.46, a quick ratio of 3.44 and a debt-to-equity ratio of 2.06. The stock has a market cap of $604.37 million, a P/E ratio of -2.99 and a beta of 0.93.

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 the consensus estimate of ($0.64) by $0.25. The firm had revenue of $2.14 million for the quarter, compared to the consensus estimate of $6.01 million. As a group, sell-side analysts expect that Verastem, Inc. will post -3.02 EPS for the current fiscal year.

Insider Activity at Verastem

In related news, CEO Dan Paterson sold 17,808 shares of Verastem stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $5.13, for a total value of $91,355.04. Following the sale, the chief executive officer owned 443,839 shares of the company's stock, valued at approximately $2,276,894.07. The trade was a 3.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders have sold 23,275 shares of company stock valued at $120,296. Insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Verastem

Hedge funds have recently modified their holdings of the stock. E Fund Management Co. Ltd. bought a new stake in shares of Verastem in the 2nd quarter worth approximately $49,000. Nebula Research & Development LLC bought a new stake in shares of Verastem in the 2nd quarter worth approximately $53,000. ProShare Advisors LLC bought a new stake in shares of Verastem in the 4th quarter worth approximately $56,000. Sherbrooke Park Advisers LLC bought a new stake in shares of Verastem in the 4th quarter worth approximately $61,000. Finally, The Manufacturers Life Insurance Company raised its holdings in shares of Verastem by 9.8% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company's stock worth $67,000 after purchasing an additional 1,440 shares during the period. Institutional investors own 88.37% of the company's stock.

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.