Verastem (NASDAQ:VSTM) Upgraded by Zacks Research to "Hold" Rating

Key Points

• Zacks Research has upgraded Verastem (NASDAQ:VSTM) to a "hold" rating, with other firms also issuing favorable ratings and price targets ranging from $10.00 to $14.00.
• Verastem recently reported a quarterly loss of ($0.39) EPS, surpassing analysts' expectations, although their revenue fell short of projections at $2.14 million.
• Insiders have sold a total of 94,308 shares of Verastem stock in recent months, suggesting a trend of executives reducing their holdings in the company.

Verastem (NASDAQ:VSTM - Get Free Report) was upgraded by analysts at Zacks Research to a "hold" rating in a research report issued on Tuesday, August 12th,Zacks.com reports.

A number of other brokerages have also weighed in on VSTM. Royal Bank Of Canada raised their price target on shares of Verastem from $12.00 to $13.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. HC Wainwright raised their target price on Verastem from $10.00 to $14.00 and gave the company a "buy" rating in a research report on Friday, May 9th. Finally, Wall Street Zen upgraded Verastem from a "sell" rating to a "hold" rating in a research report on Sunday, August 10th. Eight investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, Verastem has an average rating of "Moderate Buy" and an average target price of $13.29.

Verastem Price Performance

Shares of Verastem stock traded up $0.53 during trading hours on Tuesday, reaching $8.32. The stock had a trading volume of 4,146,379 shares, compared to its average volume of 1,793,120. The stock's 50 day moving average is $5.62 and its 200 day moving average is $6.14. The firm has a market capitalization of $512.01 million, a PE ratio of -2.54 and a beta of 0.83. Verastem has a twelve month low of $2.34 and a twelve month high of $9.10. The company has a current ratio of 3.46, a quick ratio of 3.44 and a debt-to-equity ratio of 2.06.

Verastem (NASDAQ:VSTM - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The biopharmaceutical company reported ($0.39) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.64) by $0.25. The company had revenue of $2.14 million during the quarter, compared to analyst estimates of $6.01 million. Equities analysts expect that Verastem will post -3.02 earnings per share for the current fiscal year.

Insider Activity at Verastem

In related news, CEO Dan Paterson sold 17,808 shares of the stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $5.13, for a total transaction of $91,355.04. Following the completion of the transaction, the chief executive officer 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In the last quarter, insiders have sold 24,488 shares of company stock valued at $127,149. Corporate insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Verastem

Institutional investors have recently modified their holdings of the company. Balyasny Asset Management L.P. purchased a new position in Verastem during the 4th quarter valued at about $20,400,000. Nantahala Capital Management LLC boosted its stake in shares of Verastem by 0.5% in the fourth quarter. Nantahala Capital Management LLC now owns 3,752,583 shares of the biopharmaceutical company's stock valued at $19,401,000 after purchasing an additional 19,250 shares during the period. BVF Inc. IL boosted its stake in shares of Verastem by 62.1% in the second quarter. BVF Inc. IL now owns 3,404,425 shares of the biopharmaceutical company's stock valued at $14,128,000 after purchasing an additional 1,303,957 shares during the period. Armistice Capital LLC purchased a new position in shares of Verastem in the second quarter valued at approximately $8,864,000. Finally, Octagon Capital Advisors LP purchased a new stake in Verastem during the 1st quarter worth approximately $10,372,000. 88.37% of the stock is owned by institutional investors and hedge funds.

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.