Verastem (NASDAQ:VSTM) Downgraded by Wall Street Zen to Sell

Verastem (NASDAQ:VSTM) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued on Saturday.

VSTM has been the subject of a number of other research reports. Cantor Fitzgerald upgraded shares of Verastem to a “strong-buy” rating in a research report on Thursday, October 30th. Mizuho set a $15.00 price objective on Verastem in a research report on Wednesday, October 29th. Royal Bank Of Canada set a $13.00 price target on Verastem and gave the company an “outperform” rating in a report on Monday, October 20th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Verastem in a report on Wednesday, October 8th. Finally, BTIG Research reissued a “buy” rating and set a $20.00 target price on shares of Verastem in a research report on Tuesday, September 9th. Three analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $14.29.

Verastem Stock Performance

NASDAQ:VSTM opened at $8.07 on Friday. The business’s fifty day moving average price is $9.02 and its 200 day moving average price is $7.38. The company has a debt-to-equity ratio of 2.06, a current ratio of 2.58 and a quick ratio of 3.44. The firm has a market capitalization of $538.91 million, a PE ratio of -2.00 and a beta of 0.89. Verastem has a 12 month low of $3.45 and a 12 month high of $11.24.

Verastem (NASDAQ:VSTM) last released its quarterly earnings data on Tuesday, November 4th. The biopharmaceutical company reported ($1.35) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.51) by ($0.84). The business had revenue of $11.24 million for the quarter, compared to the consensus estimate of $5.76 million. On average, sell-side analysts anticipate that Verastem will post -3.02 earnings per share for the current fiscal year.

Insider Activity at Verastem

In related news, Director Paul A. Bunn sold 8,333 shares of the firm’s stock in a transaction that occurred on Thursday, October 9th. The shares were sold at an average price of $9.06, for a total transaction of $75,496.98. Following the completion of the sale, the director directly owned 8,333 shares in the company, valued at approximately $75,496.98. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Dan Paterson sold 3,299 shares of Verastem stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $9.74, for a total value of $32,132.26. Following the completion of the transaction, the chief executive officer directly owned 438,818 shares in the company, valued at $4,274,087.32. This represents a 0.75% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 12,972 shares of company stock valued at $120,945 over the last quarter. Insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Verastem

Several hedge funds have recently bought and sold shares of VSTM. E Fund Management Co. Ltd. purchased a new stake in Verastem in the 2nd quarter worth approximately $49,000. Nebula Research & Development LLC acquired a new stake in Verastem in the 2nd quarter worth $53,000. The Manufacturers Life Insurance Company grew its holdings in shares of Verastem by 9.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company’s stock worth $67,000 after purchasing an additional 1,440 shares in the last quarter. Profund Advisors LLC bought a new position in Verastem during the second quarter worth about $90,000. Finally, Los Angeles Capital Management LLC bought a new position in shares of Verastem during the second quarter valued at $106,000. 88.37% of the stock is owned by hedge funds and other institutional investors.

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.