Verastem, Inc. (NASDAQ:VSTM) Sees Significant Drop in Short Interest

Verastem, Inc. (NASDAQ:VSTM) was the target of a large decrease in short interest in the month of June. As of June 15th, there was short interest totalling 1,320,000 shares, a decrease of 44.5% from the May 31st total of 2,380,000 shares. Based on an average daily trading volume, of 685,800 shares, the days-to-cover ratio is presently 1.9 days. Approximately 6.5% of the company’s stock are short sold.

Verastem Trading Up 2.8 %

Shares of NASDAQ:VSTM opened at $2.98 on Friday. The business’s 50-day moving average is $7.15 and its 200 day moving average is $9.64. Verastem has a 1 year low of $2.80 and a 1 year high of $14.22. The firm has a market capitalization of $75.47 million, a P/E ratio of -0.68 and a beta of 0.27. The company has a debt-to-equity ratio of 1.60, a current ratio of 4.40 and a quick ratio of 4.40.

Verastem (NASDAQ:VSTM) last announced its earnings results on Thursday, May 9th. The biopharmaceutical company reported ($1.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.16) by ($0.10). On average, research analysts predict that Verastem will post -4.14 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of Verastem by 0.9% in the first quarter. Vanguard Group Inc. now owns 1,160,931 shares of the biopharmaceutical company’s stock valued at $13,699,000 after purchasing an additional 10,678 shares during the period. Cannon Global Investment Management LLC acquired a new position in shares of Verastem in the first quarter valued at about $131,000. International Assets Investment Management LLC increased its holdings in shares of Verastem by 114,375.0% in the fourth quarter. International Assets Investment Management LLC now owns 9,158 shares of the biopharmaceutical company’s stock valued at $75,000 after purchasing an additional 9,150 shares during the period. Citigroup Inc. acquired a new position in shares of Verastem in the third quarter valued at about $245,000. Finally, Sectoral Asset Management Inc. acquired a new position in shares of Verastem in the third quarter valued at about $1,653,000. 88.37% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages have weighed in on VSTM. Alliance Global Partners lowered their target price on Verastem from $34.00 to $20.00 and set a “buy” rating for the company in a report on Wednesday, May 29th. Royal Bank of Canada decreased their price objective on Verastem from $32.00 to $16.00 and set an “outperform” rating for the company in a research note on Tuesday, May 28th. StockNews.com upgraded Verastem from a “sell” rating to a “hold” rating in a research note on Thursday. Finally, HC Wainwright restated a “buy” rating and set a $17.50 price objective on shares of Verastem in a research note on Tuesday, May 28th. One investment analyst has rated the stock with a hold rating and seven have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $24.50.

About Verastem

Verastem, Inc, a development-stage biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer in the United States. Its product candidates are Avutometinib, an orally available small molecule RAF/MEK clamp that inhibits the ras sarcoma RAF/MEK, ERK mitogen activated pathway kinase pathway which is involved in cell proliferation, migration, transformation, and survival of tumor cells; and Defactinib, an oral small molecule inhibitor of FAK and proline-rich tyrosine kinase for various solid tumors.