Verastem (NASDAQ:VSTM) Sees Unusually-High Trading Volume – Here’s Why

Verastem, Inc. (NASDAQ:VSTM) saw unusually-strong trading volume on Wednesday . Approximately 3,140,160 shares changed hands during mid-day trading, an increase of 43% from the previous session’s volume of 2,199,969 shares.The stock last traded at $7.8450 and had previously closed at $7.61.

Analyst Ratings Changes

VSTM has been the topic of a number of research analyst reports. BTIG Research reiterated a “buy” rating and set a $18.00 target price on shares of Verastem in a report on Thursday, July 2nd. Guggenheim set a $12.00 price target on Verastem and gave the stock a “buy” rating in a research note on Friday, August 7th. Wall Street Zen downgraded Verastem from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Royal Bank Of Canada set a $14.00 price objective on Verastem and gave the company an “outperform” rating in a research report on Tuesday, July 7th. Finally, HC Wainwright restated a “buy” rating and set a $18.00 target price on shares of Verastem in a report on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $13.83.

Verastem Stock Down 0.5%

The company has a quick ratio of 2.22, a current ratio of 2.25 and a debt-to-equity ratio of 1.48. The company’s fifty day moving average price is $6.10 and its 200-day moving average price is $5.48. The stock has a market capitalization of $722.67 million, a PE ratio of -3.00 and a beta of 0.32.

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

Insider Activity at Verastem

In other news, CEO Dan Paterson sold 20,871 shares of the stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $4.18, for a total value of $87,240.78. Following the sale, the chief executive officer directly owned 591,242 shares of the company’s stock, valued at approximately $2,471,391.56. This represents a 3.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 26,262 shares of company stock valued at $111,897 over the last 90 days. Corporate insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Verastem

A number of hedge funds have recently bought and sold shares of VSTM. Hennion & Walsh Asset Management Inc. raised its stake in shares of Verastem by 157.2% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 569,195 shares of the biopharmaceutical company’s stock worth $2,174,000 after purchasing an additional 347,872 shares during the last quarter. AIGH Capital Management LLC bought a new position in shares of Verastem during the first quarter valued at $10,600,000. Exome Asset Management LLC boosted its position in shares of Verastem by 58.5% during the first quarter. Exome Asset Management LLC now owns 636,700 shares of the biopharmaceutical company’s stock valued at $3,375,000 after buying an additional 234,957 shares during the last quarter. Foresite Capital Management VI LLC boosted its position in shares of Verastem by 19.9% during the fourth quarter. Foresite Capital Management VI LLC now owns 3,135,120 shares of the biopharmaceutical company’s stock valued at $24,203,000 after buying an additional 520,000 shares during the last quarter. Finally, NEXTBio Capital Management LP bought a new stake in Verastem in the 4th quarter worth about $10,093,000. Institutional investors own 88.37% of the company’s stock.

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.