Verastem (NASDAQ:VSTM) Shares Up 5.6% - Here's Why

Key Points

• Shares of Verastem, Inc. increased by 5.6% during mid-day trading, reaching a last traded price of $9.65, despite an 82% decline in trading volume compared to average rates.
• Analyst ratings vary with one Strong Buy, seven Buy, and one Hold, while the stock has a consensus rating of "Buy" and an average target price of $13.29.
• CEO Dan Paterson sold 17,808 shares for approximately $91,355, resulting in a 3.86% decrease in his stock ownership following the transaction.

Verastem, Inc. (NASDAQ:VSTM - Get Free Report) rose 5.6% on Wednesday . The company traded as high as $9.48 and last traded at $9.65. Approximately 330,450 shares were traded during mid-day trading, a decline of 82% from the average daily volume of 1,864,614 shares. The stock had previously closed at $9.13.

Wall Street Analysts Forecast Growth

VSTM has been the subject of several analyst reports. B. Riley raised Verastem to a "strong-buy" rating in a research note on Monday, August 25th. Wall Street Zen upgraded Verastem from a "sell" rating to a "hold" rating in a report on Sunday. Royal Bank Of Canada increased their price objective on Verastem from $12.00 to $13.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. BTIG Research restated a "buy" rating and set a $20.00 price target on shares of Verastem in a research note on Tuesday, September 9th. Finally, Zacks Research upgraded Verastem to a "hold" rating in a research note on Tuesday, August 12th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $13.29.

Verastem Stock Down 5.1%

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 firm's 50-day moving average price is $7.72 and its 200 day moving average price is $6.73. The firm has a market cap of $556.94 million, a P/E ratio of -2.76 and a beta of 0.92.

Verastem (NASDAQ:VSTM - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The biopharmaceutical company reported ($0.39) earnings per share for the quarter, topping the consensus estimate of ($0.64) by $0.25. The business had revenue of $2.14 million for the quarter, compared to analyst estimates of $6.01 million. On average, equities research analysts expect that Verastem, Inc. will post -3.02 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Verastem

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in VSTM. The Manufacturers Life Insurance Company lifted its position in 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 buying an additional 1,440 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its position in shares of Verastem by 3.7% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 117,784 shares of the biopharmaceutical company's stock valued at $710,000 after acquiring an additional 4,183 shares in the last quarter. Jane Street Group LLC lifted its holdings in Verastem by 31.2% during the 4th quarter. Jane Street Group LLC now owns 19,932 shares of the biopharmaceutical company's stock valued at $103,000 after purchasing an additional 4,740 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Verastem by 28.8% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,945 shares of the biopharmaceutical company's stock valued at $124,000 after purchasing an additional 6,691 shares during the last quarter. Finally, Intech Investment Management LLC raised its stake in shares of Verastem by 35.9% during the second quarter. Intech Investment Management LLC now owns 27,833 shares of the biopharmaceutical company's stock worth $116,000 after buying an additional 7,352 shares during the last quarter. Institutional investors and hedge funds 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.