Opaleye Management Inc. Invests $6.88 Million in Verastem, Inc. $VSTM

Opaleye Management Inc. bought a new stake in shares of Verastem, Inc. (NASDAQ:VSTM) during the 2nd quarter, HoldingsChannel.com reports. The firm bought 1,800,000 shares of the biopharmaceutical company’s stock, valued at approximately $6,876,000. Verastem comprises approximately 0.6% of Opaleye Management Inc.’s portfolio, making the stock its 29th largest holding.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. 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 worth $40,000 after purchasing an additional 2,960 shares in the last quarter. E Fund Management Co. Ltd. acquired a new stake in Verastem during the second quarter valued at approximately $49,000. Nebula Research & Development LLC acquired a new stake in Verastem during the second quarter valued at approximately $53,000. The Manufacturers Life Insurance Company grew its stake in shares of 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 purchasing an additional 1,440 shares during the period. Finally, BNP Paribas Financial Markets grew its stake in shares of Verastem by 110.9% in the 3rd quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company’s stock valued at $75,000 after purchasing an additional 4,496 shares during the period. Institutional investors own 88.37% of the company’s stock.

Insider Activity

In other news, CEO Dan Paterson sold 20,871 shares of the firm’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $4.18, for a total value of $87,240.78. Following the transaction, the chief executive officer owned 591,242 shares of the company’s stock, valued at approximately $2,471,391.56. This trade represents a 3.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 26,262 shares of company stock valued at $111,897. 1.94% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. Royal Bank Of Canada set a $14.00 target price on Verastem and gave the stock an “outperform” rating in a research report on Tuesday, July 7th. Jefferies Financial Group dropped their price objective on Verastem from $15.00 to $8.00 and set a “buy” rating for the company in a research note on Tuesday, June 23rd. Wall Street Zen raised Verastem from a “sell” rating to a “hold” rating in a report on Saturday, September 5th. Mizuho set a $13.00 target price on shares of Verastem and gave the company an “outperform” rating in a research note on Monday, August 10th. Finally, BTIG Research reaffirmed a “buy” rating and issued a $18.00 target price on shares of Verastem in a report on Thursday, July 2nd. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $13.83.

Verastem Trading Down 4.0%

Shares of VSTM opened at $7.62 on Friday. The company has a quick ratio of 2.22, a current ratio of 2.25 and a debt-to-equity ratio of 1.48. Verastem, Inc. has a 12-month low of $3.43 and a 12-month high of $10.82. The firm has a market capitalization of $690.07 million, a PE ratio of -2.86 and a beta of 0.32. The stock’s fifty day simple moving average is $6.50 and its 200-day simple moving average is $5.56.

Verastem (NASDAQ:VSTM) last posted its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.43) by $0.08. The business had revenue of $40.08 million for the quarter, compared to analysts’ expectations of $22.88 million. Verastem had a negative return on equity of 467.49% and a negative net margin of 231.59%. As a group, research analysts predict that Verastem, Inc. will post -1.56 earnings per share for the current year.

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.