Verastem (VSTM) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research lowered shares of Verastem (NASDAQ:VSTM) from a hold rating to a sell rating in a report issued on Saturday, Zacks.com reports.

According to Zacks, “Verastem, Inc., a clinical stage biopharmaceutical company, focuses on discovering and developing drugs to improve outcomes for patients with cancer. Its programs target the focal adhesion kinase (FAK) and the phosphoinositide 3-kinase (PI3K)/mTOR signaling pathways. Its lead FAK inhibitor is defactinib (VS-6063), an orally available candidate for combination therapy with immuno-oncology agents and other anti-cancer compounds. The company’s defactinib is in Phase 1b study for the treatment of pancreatic cancer, as well as in Phase 1/2 clinical trial for the treatment of ovarian cancer, non-small cell lung cancer, mesothelioma, and pancreatic cancer. It also engages in developing duvelisib, an investigational oral therapy that targets the PI3K signaling pathway, as well as attacks malignant B-cells and T-cells and disrupt the tumor microenvironment to help thwart their growth and proliferation for patients with lymphatic cancers through the dual inhibition of PI3K delta and gamma. “

A number of other research firms have also recently issued reports on VSTM. HC Wainwright decreased their target price on Verastem from $13.00 to $10.00 and set a buy rating on the stock in a research report on Thursday, March 14th. Cantor Fitzgerald initiated coverage on Verastem in a research report on Wednesday, April 3rd. They issued an overweight rating and a $5.00 target price on the stock. ValuEngine cut Verastem from a hold rating to a sell rating in a research report on Wednesday, May 1st. B. Riley reiterated a buy rating on shares of Verastem in a research report on Thursday, May 9th. Finally, Raymond James decreased their target price on Verastem from $12.00 to $6.00 and set an outperform rating on the stock in a research report on Thursday, March 14th. Three equities research analysts have rated the stock with a sell rating, one has issued a hold rating and seven have given a buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $8.69.

VSTM stock opened at $1.54 on Friday. Verastem has a 52 week low of $1.20 and a 52 week high of $10.35. The company has a debt-to-equity ratio of 1.42, a current ratio of 7.57 and a quick ratio of 7.56. The stock has a market capitalization of $113.77 million, a P/E ratio of -1.12 and a beta of 2.83.

Verastem (NASDAQ:VSTM) last released its earnings results on Thursday, May 9th. The biopharmaceutical company reported ($0.51) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.46) by ($0.05). Verastem had a negative net margin of 315.21% and a negative return on equity of 79.68%. The business had revenue of $1.67 million during the quarter, compared to the consensus estimate of $2.84 million. On average, sell-side analysts predict that Verastem will post -1.96 earnings per share for the current fiscal year.

In other Verastem news, Director Timothy J. Barberich bought 33,000 shares of the firm’s stock in a transaction on Friday, March 15th. The shares were purchased at an average price of $3.21 per share, for a total transaction of $105,930.00. Following the completion of the transaction, the director now directly owns 168,000 shares in the company, valued at approximately $539,280. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 6.10% of the company’s stock.

Several large investors have recently added to or reduced their stakes in VSTM. Millennium Management LLC grew its holdings in shares of Verastem by 2,376.5% during the fourth quarter. Millennium Management LLC now owns 1,248,037 shares of the biopharmaceutical company’s stock worth $4,193,000 after purchasing an additional 1,197,642 shares during the last quarter. Two Sigma Investments LP grew its holdings in shares of Verastem by 1,540.3% during the fourth quarter. Two Sigma Investments LP now owns 1,235,176 shares of the biopharmaceutical company’s stock worth $4,150,000 after purchasing an additional 1,159,874 shares during the last quarter. BlackRock Inc. grew its holdings in shares of Verastem by 31.1% during the third quarter. BlackRock Inc. now owns 4,644,888 shares of the biopharmaceutical company’s stock worth $33,676,000 after purchasing an additional 1,101,976 shares during the last quarter. Citigroup Inc. grew its holdings in shares of Verastem by 246.4% during the fourth quarter. Citigroup Inc. now owns 908,904 shares of the biopharmaceutical company’s stock worth $3,054,000 after purchasing an additional 646,545 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in shares of Verastem by 98.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,085,135 shares of the biopharmaceutical company’s stock worth $3,646,000 after purchasing an additional 539,193 shares during the last quarter. Institutional investors own 58.00% of the company’s stock.

Verastem Company Profile

Verastem, Inc, a biopharmaceutical company, focusing on developing and commercializing medicines to improve the survival and quality of life of cancer patients. It markets COPIKTRA (duvelisib), an oral inhibitor of phosphoinositide 3-kinase (PI3K) and dual inhibitor of PI3K-delta and PI3K-gamma, which is indicated for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma after at least two prior therapies and relapsed or refractory follicular lymphoma (FL) after at least two prior systemic therapies.

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