A Great Stock That Is Lost For Many Investors: Verastem Inc. (VSTM)

Verastem Inc. (NASDAQ: VSTM) is 0.75% higher on its value in year-to-date trading and has touched a low of $0.83 and a high of $4.67 in the current 52-week trading range. The VSTM stock was last observed hovering at around $1.37 in the last trading session, with the day’s loss setting it -0.02% off its average median price target of $4.00 for the next 12 months. It is also 73.0% off the consensus price target high of $5.00 offered by 3 analysts, but current levels are 55.0% higher than the price target low of $3.00 for the same period.

Currently trading at $1.35, the stock is -7.96% and -19.68% below its SMA20 and SMA50 respectively. However, with a daily trading volume of 4.38 million and changing -1.10% at the moment leaves the stock -25.84% off its SMA200. VSTM registered -10.00% loss for a year compared to 6-month loss of -24.58%. The firm has a 50-day simple moving average (SMA 50) of $1.6031 and a 200-day simple moving average (SMA200) of $2.0820.

The stock witnessed a -21.51% gain in the last 1 month and extending the period to 3 months gives it a -28.57%, and is -2.17% down over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 8.94% over the week and 7.11% over the month.

Verastem Inc. (VSTM) has around 135 employees, a market worth around $207.40M and $20.80M in sales. Distance from 52-week low is 62.65% and -71.09% from its 52-week high. The company has generated returns on investments over the last 12 months (-119.40%).

Verastem Inc. (VSTM) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Verastem Inc. (VSTM) is a “Overweight”. 3 analysts offering their recommendations for the stock have an average rating of 2.20, where 1 rate it as a Hold and 0 think it is a “Overweight”. 2 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Verastem Inc. is expected to release its quarterly report on 08/11/2020 and quarterly earnings per share for the current quarter are estimated at -$0.15 with sales reaching $4.11M over the same period.The EPS is expected to shrink by -79.40% this year, but quarterly earnings will post -3.90% year-over-year. Quarterly sales are estimated to grow 31.10% in year-over-year returns.

Verastem Inc. (VSTM) Top Institutional Holders

92 institutions hold shares in Verastem Inc. (VSTM), with 10.93M shares held by insiders accounting for 6.72% while institutional investors hold 30.26% of the company’s shares. The shares outstanding are 158.60M, and float is at 134.49M with Short Float at 6.55%. Institutions hold 28.23% of the Float.

The top institutional shareholder in the company is RA Capital Management, L.P. with over 18.6 million shares valued at $49.12 million. The investor’s holdings represent 11.45% of the VSTM Shares outstanding. As of Mar 30, 2020, the second largest holder is Vivo Capital, LLC with 8.14 million shares valued at $21.49 million to account for 5.01% of the shares outstanding. The other top investors are BVF Inc. which holds 6.33 million shares representing 3.89% and valued at over $16.71 million, while Point72 Asset Management, L.P. holds 3.77% of the shares totaling 6.12 million with a market value of $16.16 million.

Verastem Inc. (VSTM) Insider Activity

A total of 5 insider transactions have happened at Verastem Inc. (VSTM) in the last six months, with sales accounting for 2 and purchases happening 3 times. The most recent transaction is an insider sale by RA CAPITAL MANAGEMENT, L.P., the company’s 10% Owner. SEC filings show that RA CAPITAL MANAGEMENT, L.P. sold 1,161,300 shares of the company’s common stock on Jun 25 at a price of $1.91 per share for a total of $2.22 million. Following the sale, the insider now owns 16.14 million shares.

Verastem Inc. disclosed in a document filed with the SEC on Apr 27 that RA CAPITAL MANAGEMENT, L.P. (10% Owner) sold a total of 1,301,300 shares of the company’s common stock. The trade occurred on Apr 27 and was made at $2.31 per share for $3.0 million. Following the transaction, the insider now directly holds 17.3 million shares of the VSTM stock.

Verastem Inc. (VSTM): Who are the competitors?

The company’s main competitors (and peers) include Pfizer Inc. (PFE) that is trading -0.26% down over the past 12 months. Short interest in the company’s stock has fallen -6.92% from the last report on Jun 14, 2020 to stand at a total of 9.42 million short shares sold with a short interest ratio of 1.28.