Verastem, Inc. (VSTM) Stock: Is This Biotech Stock Worth Your Attention?

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Verastem, Inc. (VSTM) is falling in the market in today’s trading session. The company, one that is focused on the biotechnology industry, is currently priced at $3.17 after a move down of -5.37% so far today. In terms of biotech stocks, there are several aspects that have the ability to lead to declines in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories centered around VSTM:

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Mar-14-19 03:00PM 3 Penny Stocks That Could Make You Rich — or Regretful
Mar-13-19 07:56PM Edited Transcript of VSTM earnings conference call or presentation 12-Mar-19 8:30pm GMT
01:59PM Why Verastem Stock Broke Down Today
10:42AM Verastem (VSTM) Q4 2018 Earnings Conference Call Transcript
07:27AM The Daily Biotech Pulse: AEterna Zentaris Explores Options, Verastem Plunges On Weak Copiktra Sales, FDA Nod For Aerie

Nonetheless, when making an investing decision, investors should focus on much more than news, this is especially the case in the speculative biotechnology space. Here’s what’s going on with Verastem, Inc..

Recent Movement Out of VSTM

Although a decline in a single session, like what we’re seeing from Verastem, Inc. might cause fear in some investors, that alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is always important to take a look at trends just a single trading day. As it relates to VSTM, below are the returns that investors have seen:

  • Past 5 Trading Sessions – Throughout the last five trading sessions, VSTM has generated a change in value in the amount of 12.81%.
  • Past Month – The ROI from Verastem, Inc. over the past 30 days works out to 1.60%.
  • Quarterly – Throughout the last three months, the stock has produced a return of -27.46%
  • Bi-Annually – Over the previous six months, we have seen a performance of -65.43% from the stock.
  • YTD – Since the open of this year VSTM has generated a return on investment of -5.65%.
  • Annually – Lastly, over the last year, we have seen movement that comes to -5.65% from VSTM. In this period of time, the stock has sold at a high price of -69.37% and a low price of 21.46%.

Ratios That Are Notable

Digging into a few ratios associated with a stock can provide traders a view of how risky and/or rewarding a stock pick may be. Here are a few of the key ratios to think about when looking at VSTM.

Short Ratio – The short ratio is a measure of short interest. As the ratio heads up, it shows that more investors are expecting that the price of the stock is headed for declines. Throughout the sector, biotechnology stocks can come with a higher short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, in regard to Verastem, Inc., it’s short ratio comes to 8.98.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Basically, they measure whether or not a company can pay for its debts when they come due based on quick assets or current assets. In the biotechnology industry, many companies rely heavily on the continuation of investor support, the quick and current ratios can be bad. Nonetheless, quite a few good picks in the biotechnology industry do have positive quick and current ratios. When it comes to VSTM, the quick and current ratios total up to 3.00 and 3.00 respectively.  

Book To Share Value – The book to share value compares the current book value of assets owned by the company to the price of shares. when it comes to Verastem, Inc., the book to share value ratio equates to 1.46.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the price of shares. Several early stage biotech companies have a hard time keeping cash on hand. So, if you’re interested in a biotech stock, this is a very important ratio to think about. In the case of VSTM, the cash to share value comes to 1.96.

Analyst Opinions With Regard To Verastem, Inc.

While it’s rarely a smart idea to blindly follow the thoughts of analysts, it is a smart idea to consider their thoughts in order to validate your own opinions before making an investment decision in the biotechnology space. Below are|Here are} the most recent moves that we have seen from analysts as it relates to VSTM.

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Jul-13-18 Initiated BTIG Research Buy $17
May-02-18 Initiated Seaport Global Securities Buy $14
Mar-08-18 Initiated B. Riley FBR, Inc. Buy $15
Sep-07-17 Reiterated H.C. Wainwright Buy $6.50 → $10
Apr-13-17 Initiated Oppenheimer Outperform

What Institutions And Insiders Think Of Verastem, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in VSTM, here’s what we’re seeing:

  • Institutional Investors – At the moment, institutions own 61.30% of the company. Nonetheless, it’s worth considering that institutional ownership has seen a move in the amount of 20.67% throughout the past 3 months.
  • Insider Moves – As far as insiders go, insiders of the company currently hold 0.50% of Verastem, Inc.. Insider ownership of the company has changed by 8.94% throughout the last quarter.

Interested In How Many Shares Are Available?

Traders and investors tend to have an interest in the amounts of shares both available and outstanding. As it relates to Verastem, Inc., currently there are 74.34M with a float of 71.32M. These data mean that out of the total of 74.34M shares of VSTM in existence today, 71.32M are able to be traded in the public realm.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to VSTM, the short percent of the float is 32.62%.

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.48. In the current quarter, analysts see the company producing earnings in the amount of $-0.53. Over the last 5 years, VSTM has generated revenue in the amount of $0 with earnings coming in at -0.70%. On a quarter over quarter basis, earnings have seen movement of 52.10% and revenue has seen movement of 0.

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