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 traded hands during mid-day 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 Analyst Weigh In

A number of equities analysts recently issued reports on VSTM shares. BTIG Research reissued a "buy" rating and issued a $20.00 price objective on shares of Verastem in a report on Tuesday. Royal Bank Of Canada increased 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 raised Verastem to a "hold" rating in a research note on Tuesday, August 12th. Wall Street Zen raised Verastem from a "sell" rating to a "hold" rating in a research note on Sunday, August 10th. Finally, B. Riley raised Verastem to a "strong-buy" rating in a research note on Monday, August 25th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average price target of $13.29.

Verastem Trading Down 2.1%

The company has a debt-to-equity ratio of 2.06, a current ratio of 3.46 and a quick ratio of 3.44. The company has a fifty day moving average of $6.96 and a 200-day moving average of $6.51. The firm has a market capitalization of $597.68 million, a PE ratio of -2.96 and a beta of 0.93.

Verastem (NASDAQ:VSTM - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The biopharmaceutical company reported ($0.39) earnings per share (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 analysts' expectations of $6.01 million. On average, sell-side analysts anticipate that Verastem, Inc. will post -3.02 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Dan Paterson sold 17,808 shares of the firm's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $5.13, for a total value of $91,355.04. Following the sale, the chief executive officer directly owned 443,839 shares of the company's stock, valued at approximately $2,276,894.07. This trade represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold 24,488 shares of company stock valued at $127,149 over the last 90 days. Company insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. ProShare Advisors LLC bought a new position in Verastem during the fourth quarter worth about $56,000. BNP Paribas Financial Markets acquired a new stake in Verastem during the 4th quarter worth $387,000. Stifel Financial Corp grew its holdings in Verastem by 30.5% during the 4th quarter. Stifel Financial Corp now owns 39,593 shares of the biopharmaceutical company's stock worth $205,000 after acquiring an additional 9,254 shares during the period. Jefferies Financial Group Inc. acquired a new stake in Verastem during the 1st quarter worth $1,631,000. Finally, Voya Investment Management LLC acquired a new stake in Verastem during the 4th quarter worth $59,000. Institutional investors own 88.37% of the company's stock.

About Verastem

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.

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