Verastem (NASDAQ:VSTM) Stock Passes Above Two Hundred Day Moving Average - Should You Sell?

Verastem, Inc. (NASDAQ:VSTM - Get Free Report) shares passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $4.05 and traded as high as $5.87. Verastem shares last traded at $5.68, with a volume of 505,293 shares trading hands.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on VSTM shares. Guggenheim reaffirmed a "buy" rating on shares of Verastem in a research report on Friday, January 24th. B. Riley increased their price objective on Verastem from $7.00 to $9.00 and gave the stock a "buy" rating in a report on Friday, January 31st. StockNews.com downgraded Verastem from a "hold" rating to a "sell" rating in a report on Tuesday, November 19th. Royal Bank of Canada increased their price objective on Verastem from $13.00 to $16.00 and gave the stock an "outperform" rating in a report on Tuesday, January 7th. Finally, Mizuho increased their price objective on Verastem from $7.00 to $9.00 and gave the stock an "outperform" rating in a report on Thursday, December 19th. One research analyst has rated the stock with a sell rating and nine have issued a buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $13.63.

Verastem Stock Up 2.0 %

The firm has a 50-day moving average of $5.43 and a 200 day moving average of $4.05. The company has a debt-to-equity ratio of 2.77, a current ratio of 3.23 and a quick ratio of 3.23. The stock has a market capitalization of $252.82 million, a price-to-earnings ratio of -1.78 and a beta of 0.28.

Insider Activity at Verastem

In other news, CEO Dan Paterson sold 8,568 shares of the firm's stock in a transaction that occurred on Monday, January 13th. The stock was sold at an average price of $5.24, for a total value of $44,896.32. Following the completion of the sale, the chief executive officer now directly owns 347,581 shares of the company's stock, valued at $1,821,324.44. This trade represents a 2.41 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Over the last ninety days, insiders sold 10,367 shares of company stock valued at $53,990. Insiders own 2.20% of the company's stock.

Institutional Trading of Verastem

Hedge funds have recently made changes to their positions in the business. Tower Research Capital LLC TRC lifted its position in shares of Verastem by 51.5% in the fourth quarter. Tower Research Capital LLC TRC now owns 4,997 shares of the biopharmaceutical company's stock valued at $26,000 after buying an additional 1,698 shares during the last quarter. ProShare Advisors LLC acquired a new stake in shares of Verastem in the fourth quarter valued at approximately $56,000. Voya Investment Management LLC acquired a new stake in shares of Verastem in the fourth quarter valued at approximately $59,000. Sherbrooke Park Advisers LLC acquired a new stake in Verastem during the 4th quarter worth approximately $61,000. Finally, FMR LLC acquired a new stake in Verastem during the 3rd quarter worth approximately $41,000. 88.37% of the stock is owned by institutional investors and hedge funds.

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.