Verastem Inc. [VSTM] Is Currently -7.11 below its 200 Period Moving Avg: What Dose This Mean?

Verastem Inc. [NASDAQ: VSTM] traded at a low on 01/11/21, posting a -7.11 loss after which it closed the day’ session at $2.35. The company report on January 8, 2021 that Verastem Oncology Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4).

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Verastem, Inc. (Nasdaq:VSTM) (also known as Verastem Oncology), a biopharmaceutical company committed to advancing new medicines for patients battling cancer, announced the grant of options to purchase 86,250 shares of its common stock and the grant of 43,125 restricted stock units (RSUs) to five new employees. The awards were granted as an inducement material to the employees’ acceptance of employment with Verastem Oncology in accordance with Nasdaq Listing Rule 5635(c)(4). The options have an exercise price equal to $2.20 per share, the closing price of Verastem Oncology’s common stock as reported by Nasdaq on January 4, 2021. The stock options and RSUs that were granted to the five new employees will vest at a rate of twenty-five percent (25%) on the one year anniversary of the employee’s date of hire, with the remaining shares vesting quarterly over the next three (3) years in equal quarterly amounts, provided the employees continue to serve as employees of or other service providers to Verastem Oncology on each such vesting date.

In addition, Verastem Oncology granted to Frank Neumann M.D., PhD stock options to purchase an aggregate of 350,000 shares of Verastem Oncology’s common stock and 150,000 RSUs in connection with his appointment to Chief Medical Officer, effective January 6, 2020. This offering is pursuant to the Nasdaq inducement grant exception as an inducement material to Dr. Neumann’s acceptance of employment with Verastem Oncology in accordance with Nasdaq Listing Rule 5635(c)(4). A stock option to purchase 300,000 shares of Verastem Oncology’s common stock and the 150,000 RSUs will vest as to 25% of the shares on the first anniversary of the date of hire and as to an additional 6.25% of the shares at the end of each successive three-month period following the first anniversary of the date of hire, provided that Dr. Neumann continues to serve as an employee of or other service provider to Verastem Oncology on each such vesting date. A stock option to purchase 50,000 shares will vest upon achievement of certain clinical development milestones, provided that Dr. Neumann continues to serve as an employee of or other service provider to Verastem Oncology on the vesting dates. Both stock options have an exercise price equal to $2.22, the closing price of Verastem Oncology’s common stock as reported by Nasdaq on January 6, 2021.

The results of the trading session contributed to over 3964796 shares changing hands. Over the past one week, the price volatility of Verastem Inc. stands at 8.05% while the volatility over the past one month is 6.28%.

The market cap for VSTM stock reached $369.04 million, with 169.51 million shares outstanding and 157.90 million shares in the current float. Compared to the average trading volume of 3.28M shares, VSTM reached a trading volume of 3964796 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Verastem Inc. [VSTM]?

BTIG Research have made an estimate for Verastem Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on June 20, 2019. The new note on the price target was released on May 10, 2019, representing the official price target for Verastem Inc. stock. Previously, the target price had yet another raise to $17, while BTIG Research analysts kept a Buy rating on VSTM stock.

The Average True Range (ATR) for Verastem Inc. is set at 0.15, with the Price to Sales ratio for VSTM stock in the period of the last 12 months amounting to 4.03. The Price to Book ratio for the last quarter was 3.05.

How has VSTM stock performed recently?

Verastem Inc. [VSTM] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.82. With this latest performance, VSTM shares gained by 0.43% in over the last four-week period, additionally plugging by 78.03% over the last 6 months – not to mention a rise of 33.52% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for VSTM stock in for the last two-week period is set at 58.99, with the RSI for the last a single of trading hit 57.04, and the three-weeks RSI is set at 60.52 for Verastem Inc. [VSTM]. The present Moving Average for the last 50 days of trading for this stock 1.91, while it was recorded at 2.33 for the last single week of trading, and 1.78 for the last 200 days.

Verastem Inc. [VSTM]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Verastem Inc. [VSTM] shares currently have an operating margin of -758.14 and a Gross Margin at +81.46. Verastem Inc.’s Net Margin is presently recorded at -854.77.

Return on Total Capital for VSTM is now -73.63, given the latest momentum, and Return on Invested Capital for the company is -84.46. Return on Equity for this stock declined to -226.98, with Return on Assets sitting at -70.67. When it comes to the capital structure of this company, Verastem Inc. [VSTM] has a Total Debt to Total Equity ratio set at 1,498.91. Additionally, VSTM Total Debt to Total Capital is recorded at 93.75, with Total Debt to Total Assets ending up at 74.14. Long-Term Debt to Equity for the company is recorded at 1,493.06, with the Long-Term Debt to Total Capital now at 93.38.

Reflecting on the efficiency of the workforce at the company, Verastem Inc. [VSTM] managed to generate an average of -$1,105,252 per employee. Receivables Turnover for the company is 12.34 with a Total Asset Turnover recorded at a value of 0.08.Verastem Inc.’s liquidity data is similarly interesting compelling, with a Current Ratio set at 5.00.

Earnings analysis for Verastem Inc. [VSTM]

With the latest financial reports released by the company, Verastem Inc. posted -0.51/share EPS, while the average EPS was predicted by analysts to be reported at -0.45/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -13.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for VSTM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Verastem Inc. go to 1.74%.

Insider trade positions for Verastem Inc. [VSTM]

There are presently around $151 million, or 45.30% of VSTM stock, in the hands of institutional investors. The top three institutional holders of VSTM stocks are: BLACKROCK INC. with ownership of 12,337,965, which is approximately 11.343% of the company’s market cap and around 1.40% of the total institutional ownership; BVF INC/IL, holding 10,747,994 shares of the stock with an approximate value of $25.26 million in VSTM stocks shares; and VANGUARD GROUP INC, currently with $19.25 million in VSTM stock with ownership of nearly -0.819% of the company’s market capitalization.

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Positions in Verastem Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 38 institutional holders increased their position in Verastem Inc. [NASDAQ:VSTM] by around 11,317,591 shares. Additionally, 68 investors decreased positions by around 18,693,705 shares, while 43 investors held positions by with 34,111,674 shares. The mentioned changes placed institutional holdings at 64,122,970 shares, according to the latest SEC report filing. VSTM stock had 7 new institutional investments in for a total of 2,781,469 shares, while 27 institutional investors sold positions of 12,435,471 shares during the same period.

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