Verastem (VSTM) Stock Rating Lowered by Zacks Investment Research

Verastem (NASDAQ:VSTM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors 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. “

VSTM has been the subject of several other research reports. ValuEngine lowered Verastem from a “hold” rating to a “sell” rating in a research note on Wednesday, May 1st. BTIG Research cut their target price on Verastem to $8.00 and set a “buy” rating for the company in a research note on Friday, May 10th. HC Wainwright reaffirmed a “buy” rating and issued a $2.50 target price on shares of Verastem in a research note on Friday, May 10th. Cantor Fitzgerald initiated coverage on Verastem in a research note on Wednesday, April 3rd. They issued an “overweight” rating and a $5.00 target price for the company. Finally, Raymond James cut their target price on Verastem from $12.00 to $6.00 and set an “outperform” rating for the company in a research note on Thursday, March 14th. Three investment analysts have rated the stock with a sell rating, one has assigned a hold rating and seven have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus target price of $8.69.

Shares of NASDAQ VSTM opened at $1.53 on Friday. Verastem has a 12 month low of $1.20 and a 12 month high of $10.35. The company has a quick ratio of 7.56, a current ratio of 7.57 and a debt-to-equity ratio of 1.42. The stock has a market cap of $113.03 million, a PE ratio of -1.12 and a beta of 2.83.

Verastem (NASDAQ:VSTM) last issued its quarterly earnings data on Thursday, May 9th. The biopharmaceutical company reported ($0.51) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.46) by ($0.05). Verastem had a negative return on equity of 79.68% and a negative net margin of 315.21%. The business had revenue of $1.67 million for the quarter, compared to analysts’ expectations of $2.84 million. Sell-side analysts anticipate that Verastem will post -1.96 EPS for the current year.

In other news, Director Timothy J. Barberich bought 33,000 shares of the business’s stock in a transaction on Friday, March 15th. The stock was acquired at an average price of $3.21 per share, with a total value of $105,930.00. Following the completion of the purchase, the director now directly owns 168,000 shares in the company, valued at $539,280. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 6.10% of the stock is owned by corporate insiders.

Hedge funds have recently made changes to their positions in the business. MetLife Investment Advisors LLC lifted its position in Verastem by 68.9% in the third quarter. MetLife Investment Advisors LLC now owns 45,077 shares of the biopharmaceutical company’s stock valued at $327,000 after purchasing an additional 18,385 shares during the last quarter. Principal Financial Group Inc. bought a new stake in Verastem in the fourth quarter valued at approximately $35,000. Parallel Advisors LLC lifted its position in Verastem by 84.6% in the fourth quarter. Parallel Advisors LLC now owns 24,000 shares of the biopharmaceutical company’s stock valued at $80,000 after purchasing an additional 11,000 shares during the last quarter. Creative Planning lifted its position in Verastem by 43.7% in the fourth quarter. Creative Planning now owns 92,031 shares of the biopharmaceutical company’s stock valued at $309,000 after purchasing an additional 28,000 shares during the last quarter. Finally, BlackRock Inc. lifted its position in Verastem by 31.1% in the third quarter. BlackRock Inc. now owns 4,644,888 shares of the biopharmaceutical company’s stock valued at $33,676,000 after purchasing an additional 1,101,976 shares during the last quarter. Hedge funds and other institutional investors own 58.00% of the company’s stock.

About Verastem

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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