Verastem (NASDAQ:VSTM) Trading 19.3% Higher – Time to Buy?

Shares of Verastem, Inc. (NASDAQ:VSTM) traded up 19.3% during trading on Wednesday . The stock 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 Upgrades and Downgrades

A number of research firms have commented on VSTM. Guggenheim reissued a “buy” rating on shares of Verastem in a report on Tuesday, December 30th. Wall Street Zen downgraded shares of Verastem from a “hold” rating to a “sell” rating in a report on Saturday, November 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Verastem in a research note on Wednesday, October 8th. Zacks Research lowered shares of Verastem from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 18th. Finally, Mizuho set a $15.00 target price on Verastem in a report on Wednesday, October 29th. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $14.29.

Verastem Stock Down 1.0%

The company has a debt-to-equity ratio of 2.06, a current ratio of 2.58 and a quick ratio of 2.55. The stock has a market cap of $520.22 million, a price-to-earnings ratio of -1.93 and a beta of 0.44. The firm’s 50-day moving average is $8.78 and its 200 day moving average is $8.00.

Verastem (NASDAQ:VSTM) last announced its quarterly earnings results 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. Sell-side analysts anticipate that Verastem, Inc. will post -3.02 earnings per share for the current fiscal year.

Insider Transactions at Verastem

In other Verastem news, Director Michael Kauffman sold 8,550 shares of the stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $10.00, for a total value of $85,500.00. Following the completion of the sale, the director owned 8,666 shares of the company’s stock, valued at $86,660. This trade represents a 49.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul A. Bunn sold 6,250 shares of Verastem stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $10.00, for a total transaction of $62,500.00. Following the sale, the director owned 2,083 shares in the company, valued at $20,830. This represents a 75.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 37,447 shares of company stock worth $377,711. 2.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Verastem

A number of large investors have recently added to or reduced their stakes in VSTM. Goldman Sachs Group Inc. increased its holdings in Verastem by 236.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 756,402 shares of the biopharmaceutical company’s stock worth $4,561,000 after purchasing an additional 531,873 shares during the last quarter. Squarepoint Ops LLC lifted its stake in Verastem by 2,995.6% during the second quarter. Squarepoint Ops LLC now owns 351,569 shares of the biopharmaceutical company’s stock worth $1,459,000 after purchasing an additional 340,212 shares during the last quarter. Los Angeles Capital Management LLC acquired a new position in shares of Verastem in the 2nd quarter valued at about $106,000. Panagora Asset Management Inc. bought a new position in shares of Verastem during the second quarter valued at approximately $550,000. Finally, Armistice Capital LLC acquired a new stake in Verastem in the second quarter worth $8,864,000. 88.37% of the stock is owned by institutional investors and hedge funds.

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.