Ridgeback Capital Management LP recently announced the acquisition of new stake in Verastem Inc. (NASDAQ:VSTM). The institutional investor has increased its shareholding in the Healthcare company by 121.13% to 10.07 million shares with purchase of 5.52 million shares. This fresh investment now brings its stake to 6.20% valued currently at $13.49 million. In addition, BlackRock Fund Advisors raised its holdings by 8.21 million to 9.86 million shares. And The Vanguard Group, Inc. has lifted its position by 87.59% or 3.7 million shares – to 7.93 million shares.
With over 2.04 million Verastem Inc. (VSTM) shares trading Friday and a closing price of $1.32 on the day, the dollar volume was approximately $2.69 million. The shares have shown a negative weekly performance of -2.94% and its price on 08/28/20 gained nearly 4.76%. Currently, there are 165.40M common shares owned by the public and among those 158.11M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 3 analysts who have offered their price forecasts for VSTM have a consensus price objective of $4.00. The analysts have set the share’s price value over the next 12 months at a high of $5.00 and a low of $3.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Verastem Inc. stock is 2.20 for the next 12 months. But an upside of 73.6% will see the stock hit the forecast high price target while mean target price for the stock is $4.00.
Insiders at the company have transacted a total of 8 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 6 of these insider trades were purchases, accounting for 1,268,970 shares. Insider sales of the common stock occurred on 2 occasions, with total insider shares sold totaling 2,462,600 shares.
The top 3 mutual fund holders in Verastem Inc. are Vanguard Total Stock Market Index, iShares Russell 2000 ETF, and Vanguard Extended Market Index Fu. Vanguard Total Stock Market Index owns 4.95 million shares of the company’s stock, all valued at over $6.63 million. The company bought an additional 0.12 million shares recently to bring their total holdings to about 3.05% of the shares outstanding. iShares Russell 2000 ETF sold -0.16 million shares to see its total holdings shrink to 3.49 million shares valued at over $4.67 million and representing 2.15% of the shares outstanding. Vanguard Extended Market Index Fu sold 6100.0 shares to bring its total holdings to over 2.02 million shares at a value of $2.7 million. Vanguard Extended Market Index Fu now owns shares totaling to 1.24% of the shares outstanding.
Shares of Verastem Inc. (NASDAQ: VSTM) opened at $1.27, up $0.01 from a prior closing price of $1.26. However, the script later closed the day at $1.32, up 4.76%. The company’s stock has a 5-day price change of -2.94% and -31.25% over the past three months. VSTM shares are trading -1.49% year to date (YTD), with the 12-month market performance up to 0.76% higher. It has a 12-month low price of $0.83 and touched a high of $4.67 over the same period. Currently, 2.04 million shares have been traded, compared to an average intraday trading volume of 5.60 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -7.34%, -12.51%, and -28.59% respectively.
Institutional ownership of Verastem Inc. (NASDAQ: VSTM) shares accounts for 48.60% of the company’s 165.40M shares outstanding. Mutual fund holders own 20.42%, while other institutional holders and individual stakeholders account for 35.59% and 11.77% respectively.
It has a market capitalization of $213.60M and a beta (3y monthly) value of 0.96. The earnings-per-share (ttm) stands at -$1.40. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.66% over the week and 6.06% over the month.
Analysts forecast that Verastem Inc. (VSTM) will achieve an EPS of $0.04 for the current quarter, -$0.08 for the next quarter and -$0.29 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.09 while analysts give the company a high EPS estimate of $0.28. Comparatively, EPS for the current quarter was -$0.41 a year ago. Earnings per share for the fiscal year are expected to decrease by -79.40%, and 35.60% over the next financial year. EPS should grow at an annualized rate of 1.74% over the next five years, compared to 0.70% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 3 brokerage firm advisors rate Verastem Inc. (VSTM) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 1 of the 3 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the VSTM, a number of firms have released research notes about the stock. BTIG Research stated their Neutral rating for the stock in a research note on June 20, 2019, with the firm’s price target at. Raymond James coverage for the Verastem Inc. (VSTM) stock in a research note released on May 10, 2019 offered a Mkt Perform rating with a price target of. BTIG Research was of a view on July 13, 2018 that the stock is Buy, while Seaport Global Securities gave the stock Buy rating on May 02, 2018, issuing a price target of $14. B. Riley FBR Inc. on their part issued Buy rating on March 08, 2018.