Verastem (NASDAQ:VSTM) Shares Up 19.3% – Should You Buy?

Verastem, Inc. (NASDAQ:VSTM)’s stock price traded up 19.3% during mid-day trading on Wednesday . The company traded as high as $7.41 and last traded at $8.21. 859,671 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 1,278,016 shares. The stock had previously closed at $6.88.

Analyst Ratings Changes

Several brokerages recently issued reports on VSTM. Weiss Ratings reiterated a “sell (d-)” rating on shares of Verastem in a research report on Wednesday, October 8th. Cantor Fitzgerald upgraded Verastem to a “strong-buy” rating in a research report on Thursday, October 30th. HC Wainwright reissued a “buy” rating and issued a $14.00 target price on shares of Verastem in a research report on Tuesday, October 21st. Zacks Research cut Verastem from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 18th. Finally, Guggenheim reiterated a “buy” rating on shares of Verastem in a research note on Tuesday, December 30th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Verastem currently has an average rating of “Moderate Buy” and an average price target of $14.29.

Verastem Stock Up 7.2%

The company has a current ratio of 2.58, a quick ratio of 2.55 and a debt-to-equity ratio of 2.06. The stock has a market cap of $492.44 million, a P/E ratio of -1.83 and a beta of 0.44. The firm has a 50-day simple moving average of $8.86 and a two-hundred day simple moving average of $7.99.

Verastem (NASDAQ:VSTM) last announced its earnings results on Tuesday, November 4th. The biopharmaceutical company reported ($1.35) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.51) by ($0.84). The firm had revenue of $11.24 million for the quarter, compared to the consensus estimate of $5.76 million. Equities research analysts expect that Verastem, Inc. will post -3.02 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Michael Kauffman sold 8,550 shares of the business’s stock in a transaction on Friday, November 21st. The stock was sold at an average price of $10.00, for a total transaction of $85,500.00. Following the completion of the transaction, the director owned 8,666 shares of the company’s stock, valued at approximately $86,660. The trade was a 49.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Dan Paterson sold 3,299 shares of the company’s stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $9.74, for a total transaction of $32,132.26. Following the transaction, the chief executive officer owned 438,818 shares of the company’s stock, valued at approximately $4,274,087.32. This represents a 0.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 45,780 shares of company stock worth $453,208. Insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Verastem

Several hedge funds have recently modified their holdings of VSTM. Russell Investments Group Ltd. raised its position in Verastem by 182.9% in the third quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company’s stock valued at $40,000 after purchasing an additional 2,960 shares during the last quarter. E Fund Management Co. Ltd. acquired a new position in shares of Verastem in the second quarter valued at approximately $49,000. Nebula Research & Development LLC acquired a new position in shares of Verastem in the second quarter valued at approximately $53,000. The Manufacturers Life Insurance Company raised its holdings 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 valued at $67,000 after buying an additional 1,440 shares during the last quarter. Finally, BNP Paribas Financial Markets boosted its position in Verastem by 110.9% during the 3rd quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company’s stock worth $75,000 after buying an additional 4,496 shares during the period. Institutional investors and hedge funds own 88.37% of the company’s stock.

Verastem Company Profile

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.