Verastem (NASDAQ:VSTM) Shares Down 8.6% – Should You Sell?

Verastem, Inc. (NASDAQ:VSTM)’s stock price was down 8.6% during trading on Thursday . The stock traded as low as $6.66 and last traded at $6.67. Approximately 1,206,082 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 2,239,775 shares. The stock had previously closed at $7.30.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Wall Street Zen downgraded Verastem from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. HC Wainwright restated a “buy” rating and set a $18.00 price objective on shares of Verastem in a report on Wednesday, June 24th. Mizuho set a $13.00 target price on Verastem and gave the company an “outperform” rating in a research report on Monday, August 10th. Jefferies Financial Group reduced their target price on Verastem from $15.00 to $8.00 and set a “buy” rating for the company in a research note on Tuesday, June 23rd. Finally, Alliance Global Partners reissued a “buy” rating on shares of Verastem in a research report on Friday, May 8th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $13.83.

Verastem Stock Performance

The company has a fifty day moving average of $5.37 and a two-hundred day moving average of $5.40. The stock has a market capitalization of $604.94 million, a P/E ratio of -2.51 and a beta of 0.26. The company has a debt-to-equity ratio of 1.48, a current ratio of 2.25 and a quick ratio of 2.22.

Verastem (NASDAQ:VSTM) last released its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) EPS for the quarter, topping analysts’ consensus estimates of ($0.43) by $0.08. The company had revenue of $40.08 million for the quarter, compared to the consensus estimate of $22.88 million. Verastem had a negative return on equity of 467.49% and a negative net margin of 231.59%. On average, equities analysts anticipate that Verastem, Inc. will post -1.56 EPS for the current year.

Insider Transactions at Verastem

In other Verastem news, CEO Dan Paterson sold 20,871 shares of Verastem stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $4.18, for a total value of $87,240.78. Following the completion of the transaction, the chief executive officer owned 591,242 shares of the company’s stock, valued at $2,471,391.56. The trade was a 3.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 26,262 shares of company stock worth $111,897 in the last quarter. Company insiders own 1.94% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Russell Investments Group Ltd. grew its position in shares of Verastem by 182.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company’s stock valued at $40,000 after buying an additional 2,960 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in Verastem by 110.9% in the third quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company’s stock worth $75,000 after acquiring an additional 4,496 shares during the last quarter. E Fund Management Co. Ltd. bought a new position in Verastem in the second quarter worth about $49,000. DRW Securities LLC acquired a new position in Verastem in the fourth quarter valued at approximately $93,000. Finally, Nebula Research & Development LLC acquired a new position in Verastem in the second quarter valued at approximately $53,000. 88.37% of the stock is currently owned by institutional investors.

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.