Verastem (VSTM) Upgraded by Zacks Investment Research to “Buy”

Zacks Investment Research upgraded shares of Verastem (NASDAQ:VSTM) from a hold rating to a buy rating in a research note released on Friday. Zacks Investment Research currently has $9.00 price target on the biopharmaceutical company’s stock.

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. “

Several other analysts have also recently commented on the company. Cantor Fitzgerald set a $17.00 target price on Verastem and gave the stock a buy rating in a research report on Monday, April 9th. B. Riley set a $17.00 target price on Verastem and gave the stock a buy rating in a research report on Thursday, May 10th. BTIG Research began coverage on Verastem in a research report on Friday, July 13th. They issued a buy rating and a $17.00 target price for the company. ValuEngine raised Verastem from a buy rating to a strong-buy rating in a research report on Monday, June 18th. Finally, BidaskClub raised Verastem from a hold rating to a buy rating in a research report on Monday, May 14th. Ten equities research analysts have rated the stock with a buy rating and two have given a strong buy rating to the stock. The company has a consensus rating of Buy and a consensus price target of $13.89.

Shares of VSTM traded up $0.18 during trading hours on Friday, hitting $8.31. 2,156,758 shares of the company were exchanged, compared to its average volume of 2,452,543. The firm has a market cap of $465.91 million, a PE ratio of -4.72 and a beta of 2.51. The company has a quick ratio of 4.45, a current ratio of 4.45 and a debt-to-equity ratio of 0.39. Verastem has a one year low of $2.77 and a one year high of $9.07.

Verastem (NASDAQ:VSTM) last released its quarterly earnings data on Tuesday, May 8th. The biopharmaceutical company reported ($0.41) earnings per share for the quarter, missing the consensus estimate of ($0.39) by ($0.02). equities research analysts anticipate that Verastem will post -1.42 EPS for the current fiscal year.

In other Verastem news, VP Joseph M. Lobacki bought 7,700 shares of the firm’s stock in a transaction dated Friday, June 8th. The stock was acquired at an average price of $5.79 per share, with a total value of $44,583.00. Following the completion of the transaction, the vice president now directly owns 7,700 shares in the company, valued at approximately $44,583. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 6.51% of the company’s stock.

Institutional investors have recently modified their holdings of the company. Creative Planning boosted its position in Verastem by 30.1% during the second quarter. Creative Planning now owns 58,550 shares of the biopharmaceutical company’s stock valued at $403,000 after purchasing an additional 13,550 shares during the last quarter. AXA raised its holdings in Verastem by 32.2% during the fourth quarter. AXA now owns 78,425 shares of the biopharmaceutical company’s stock valued at $241,000 after buying an additional 19,118 shares in the last quarter. Wells Fargo & Company MN raised its holdings in Verastem by 130.5% during the fourth quarter. Wells Fargo & Company MN now owns 45,987 shares of the biopharmaceutical company’s stock valued at $141,000 after buying an additional 26,036 shares in the last quarter. Northern Trust Corp raised its holdings in Verastem by 42.8% during the first quarter. Northern Trust Corp now owns 94,992 shares of the biopharmaceutical company’s stock valued at $284,000 after buying an additional 28,473 shares in the last quarter. Finally, ClariVest Asset Management LLC raised its holdings in Verastem by 34.6% during the first quarter. ClariVest Asset Management LLC now owns 120,700 shares of the biopharmaceutical company’s stock valued at $360,000 after buying an additional 31,000 shares in the last quarter. 25.30% of the stock is owned by institutional investors and hedge funds.

About Verastem

Verastem, Inc, a biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer. Its programs target the focal adhesion kinase (FAK) and the phosphoinositide 3-kinase (PI3K) signaling pathways. The company's lead FAK inhibitor is defactinib, an orally available candidate for combination therapy with immuno-oncology agents and other anti-cancer compounds.

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