Verastem (NASDAQ:VSTM) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Verastem, Inc. (NASDAQ:VSTM) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $5.91, but opened at $6.65. Verastem shares last traded at $6.1750, with a volume of 869,797 shares changing hands.

The biopharmaceutical company reported ($0.35) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.43) by $0.08. Verastem had a negative net margin of 391.17% and a negative return on equity of 486.40%. The company had revenue of $40.08 million for the quarter, compared to analyst estimates of $22.88 million.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. Alliance Global Partners restated a “buy” rating on shares of Verastem in a report on Friday, May 8th. Wall Street Zen upgraded shares of Verastem from a “sell” rating to a “hold” rating in a research report on Saturday, July 25th. Weiss Ratings lowered shares of Verastem from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, June 17th. Royal Bank Of Canada set a $14.00 price objective on Verastem and gave the stock an “outperform” rating in a research report on Tuesday, July 7th. Finally, BTIG Research reiterated a “buy” rating and issued a $18.00 price target on shares of Verastem in a research note on Thursday, July 2nd. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $14.00.

Insiders Place Their Bets

In other news, CEO Dan Paterson sold 20,871 shares of Verastem stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $4.18, for a total value of $87,240.78. Following the completion of the sale, the chief executive officer directly owned 591,242 shares in the company, valued at approximately $2,471,391.56. The trade was a 3.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 26,262 shares of company stock valued at $111,897. 1.94% of the stock is owned by insiders.

Institutional Investors Weigh In On Verastem

Several institutional investors and hedge funds have recently bought and sold shares of the company. Bank of New York Mellon Corp acquired a new stake in Verastem during the second quarter worth about $706,000. Hennion & Walsh Asset Management Inc. raised its position in shares of Verastem by 157.2% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 569,195 shares of the biopharmaceutical company’s stock valued at $2,174,000 after buying an additional 347,872 shares in the last quarter. Seven Fleet Capital Management LP raised its position in shares of Verastem by 715.1% in the 1st quarter. Seven Fleet Capital Management LP now owns 123,400 shares of the biopharmaceutical company’s stock valued at $654,000 after buying an additional 108,260 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of Verastem by 31.6% during the 1st quarter. Bank of America Corp DE now owns 416,985 shares of the biopharmaceutical company’s stock worth $2,210,000 after acquiring an additional 100,123 shares during the period. Finally, ADAR1 Capital Management LLC bought a new stake in shares of Verastem during the 1st quarter worth approximately $377,000. Institutional investors own 88.37% of the company’s stock.

Verastem Price Performance

The company has a current ratio of 3.04, a quick ratio of 3.00 and a debt-to-equity ratio of 0.89. The firm has a market cap of $543.59 million, a price-to-earnings ratio of -2.29 and a beta of 0.26. The company’s 50-day moving average is $4.81 and its 200-day moving average is $5.37.

Verastem Company Profile

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.