Verastem (NASDAQ:VSTM) Price Target Raised to $14.00

Verastem (NASDAQ:VSTM) had its price target boosted by Mizuho from $13.00 to $14.00 in a research note released on Friday,Benzinga reports. Mizuho currently has an outperform rating on the biopharmaceutical company’s stock.

A number of other analysts have also recently commented on the company. Cantor Fitzgerald restated an “overweight” rating on shares of Verastem in a research report on Monday, September 28th. Guggenheim set a $12.00 target price on Verastem and gave the stock a “buy” rating in a research note on Friday, August 7th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $19.00 target price (up from $14.00) on shares of Verastem in a research note on Thursday. Citigroup reiterated a “buy” rating on shares of Verastem in a research report on Thursday, October 8th. Finally, Alliance Global Partners reissued a “buy” rating on shares of Verastem in a research note on Thursday. Eleven analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $16.67.

Verastem Stock Performance

Shares of Verastem stock opened at $8.65 on Friday. The firm has a 50-day simple moving average of $7.64 and a two-hundred day simple moving average of $5.96. The company has a debt-to-equity ratio of 1.48, a quick ratio of 2.22 and a current ratio of 2.25. Verastem has a fifty-two week low of $3.43 and a fifty-two week high of $10.82. The company has a market cap of $783.34 million, a P/E ratio of -3.25 and a beta of 0.39.

Verastem (NASDAQ:VSTM) last posted its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) EPS for the quarter, beating analysts’ consensus estimates of ($0.43) by $0.08. Verastem had a negative return on equity of 467.49% and a negative net margin of 231.59%. The firm had revenue of $40.08 million for the quarter, compared to analysts’ expectations of $22.88 million. As a group, equities analysts predict that Verastem will post -1.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Verastem news, CEO Dan Paterson sold 44,121 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $8.00, for a total transaction of $352,968.00. Following the completion of the transaction, the chief executive officer owned 652,712 shares of the company’s stock, valued at $5,221,696. This represents a 6.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 48,044 shares of company stock worth $381,484. 1.94% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Verastem

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Opaleye Management Inc. purchased a new position in shares of Verastem in the second quarter worth about $6,876,000. Bank of New York Mellon Corp acquired a new position in Verastem during the second quarter worth about $706,000. Hennion & Walsh Asset Management Inc. boosted its position in Verastem by 157.2% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 569,195 shares of the biopharmaceutical company’s stock worth $2,174,000 after acquiring an additional 347,872 shares during the last quarter. Seven Fleet Capital Management LP grew its stake in Verastem by 715.1% during the 1st quarter. Seven Fleet Capital Management LP now owns 123,400 shares of the biopharmaceutical company’s stock valued at $654,000 after acquiring an additional 108,260 shares in the last quarter. Finally, Bank of America Corp DE grew its stake in Verastem by 31.6% during the 1st quarter. Bank of America Corp DE now owns 416,985 shares of the biopharmaceutical company’s stock valued at $2,210,000 after acquiring an additional 100,123 shares in the last quarter. Hedge funds and other institutional investors own 88.37% of the company’s stock.

Verastem News Summary

Here are the key news stories impacting Verastem this week:

• Positive Sentiment: New clinical updates showed encouraging responses for VS-7375 across pancreatic, lung and colorectal cancers. The results support Verastem’s plans to advance the drug toward Phase III trials and strengthen the potential value of its oncology pipeline. Verastem investigational drug clinical update
• Positive Sentiment: Analysts raised their estimates substantially. BTIG lifted its price target from $18 to $24 and maintained a “buy” rating, while Mizuho raised its target from $13 to $14 and assigned an “outperform” rating. The analyst actions imply considerable upside from the recent trading level. Mizuho raises Verastem price target
• Positive Sentiment: The reported analyst consensus price target is $16.50, suggesting Wall Street expects further appreciation if the clinical program continues to progress. Verastem consensus price target
• Positive Sentiment: Management secured substantial oncology financing to fund development of VS-7375 and its anticipated Phase III program. The additional capital may reduce near-term funding concerns and support execution. Verastem oncology financing transaction
• Neutral Sentiment: Despite the positive data, Verastem remains a clinical-stage biotechnology company. Its valuation depends heavily on future trial results, regulatory progress and the eventual commercial potential of VS-7375.
• Negative Sentiment: The financing involves a large share offering, reported at approximately $234 million to $250 million. While it strengthens Verastem’s balance sheet, issuing additional shares can dilute existing shareholders and may limit the stock’s near-term gains. Verastem prices financing

About Verastem

Verastem Oncology (NASDAQ:VSTM) is a biopharmaceutical company focused on developing and commercializing targeted therapies for cancers driven by abnormalities in the RAS/MAPK signaling pathway. The company’s research is aimed at addressing cancers with limited treatment options, including ovarian cancer and other solid tumors.

Verastem’s lead product, avutometinib, is a treatment targeting the RAF/MEK signaling pathway and is marketed in the United States under the brand name Avmapki for certain patients with recurrent low-grade serous ovarian cancer.