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

Wall Street Zen cut shares of Verastem (NASDAQ:VSTM) from a hold rating to a sell rating in a report published on Saturday.

Other equities analysts also recently issued research reports about the company. Mizuho set a $13.00 price objective on Verastem and gave the stock an “outperform” rating in a research report on Monday, August 10th. Jefferies Financial Group dropped their target price on Verastem from $15.00 to $8.00 and set a “buy” rating for the company in a report on Tuesday, June 23rd. HC Wainwright reaffirmed a “buy” rating and issued a $18.00 target price on shares of Verastem in a research note on Wednesday, June 24th. BTIG Research reiterated a “buy” rating and set a $18.00 price target on shares of Verastem in a report on Thursday, July 2nd. Finally, Weiss Ratings lowered Verastem from a “sell (d-)” rating to a “sell (e+)” rating in a report on Wednesday, June 17th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.83.

Verastem Stock Down 1.3%

Shares of NASDAQ VSTM opened at $6.58 on Friday. The stock has a market cap of $595.90 million, a PE ratio of -2.47 and a beta of 0.26. The company has a current ratio of 2.25, a quick ratio of 3.00 and a debt-to-equity ratio of 1.48. Verastem has a 12-month low of $3.43 and a 12-month high of $11.24. The company has a 50-day moving average of $5.16 and a 200 day moving average of $5.39.

Verastem (NASDAQ:VSTM) last released its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.35) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.43) by $0.08. The business had revenue of $40.08 million for the quarter, compared to analyst estimates of $22.88 million. Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%. As a group, sell-side analysts predict that Verastem will post -1.6 EPS for the current fiscal year.

Insiders Place Their Bets

In other Verastem news, CEO Dan Paterson sold 20,871 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $4.18, for a total transaction 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. This trade represents a 3.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 26,262 shares of company stock worth $111,897 over the last ninety days. Company insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Verastem

Several large investors have recently made changes to their positions in the stock. Torray Investment Partners LLC purchased a new stake in Verastem in the fourth quarter valued at approximately $1,671,000. AIGH Capital Management LLC acquired a new position in Verastem during the first quarter worth $10,600,000. Hennion & Walsh Asset Management Inc. boosted its position in shares of 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 buying an additional 347,872 shares during the period. Exome Asset Management LLC boosted its holdings in Verastem by 58.5% during the 1st quarter. Exome Asset Management LLC now owns 636,700 shares of the biopharmaceutical company’s stock valued at $3,375,000 after acquiring an additional 234,957 shares during the period. Finally, NEXTBio Capital Management LP purchased a new position in shares of Verastem in the fourth quarter valued at approximately $10,093,000. 88.37% of the stock is currently owned by institutional investors and hedge funds.

About Verastem

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.