Verastem, Inc. (VSTM) Stock: A Strong Pick In The Biotech Space?

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Verastem, Inc. (VSTM) is gaining in the market today. The stock, focused on the biotechnology industry, is presently trading at $3.26 after climbing 4.82% so far in today’s session. In terms of biotechnology companies, there are quite a few aspects that have the ability to lead to gains in the market. News is one of the most common reasons for movement. Here are the recent trending headlines 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, any time investors are making an investing decision, prospective investors should look into far more than just news, this is especially the case in the speculative biotech industry. Here’s what’s happening with Verastem, Inc..

What We’ve Seen From VSTM

While a move toward the top in a single session, like the move that we’re seeing from Verastem, Inc. may lead to excitement in some investors, that alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It’s always a good idea to look at trends just a single trading session. In the case of VSTM, below are the movements that we’ve seen:

  • Past 5 Trading Sessions – In the last five trading sessions, VSTM has seen a price change amounting to 11.47%.
  • Past 30 Days – The monthly returns from Verastem, Inc. comes to 0.32%.
  • Quarterly – Over the past 3 months, the stock has produced a ROI that comes to -29.16%
  • Bi-Annually – Over the last 6 months, we have seen a performance that works out to -64.90% from the company.
  • Year To Date – Since the the first trading session of this year VSTM has resulted in a return on investment of -7.44%.
  • Full Year – Finally, throughout the past year, investors have seen a change that comes to -7.99% from VSTM. In this period of time, the stock has traded at a high price of -68.50% and a low of 24.90%.

Important Ratios

Looking at various key ratios having to do with a stock can give investors an understanding of how dangerous and/or rewarding a an investment option may be. Below are some 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 goes higher, it shows that more investors have a belief that the stock is going to fall. Across the sector, biotech stocks tend to come with a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the space. Nonetheless, when it comes to Verastem, Inc., it’s short ratio is 8.15.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Basically, they measure If a company is able to pay for its debts when they mature based on current assets or quick assets. In the biotech space, several companies rely on the continuation of support from investors, the quick and current ratios can be upsetting. Nonetheless, several gems in the biotechnology space come with positive current and quick ratios. As far as VSTM, the quick and current ratios come to 6.80 and 6.80 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets currently owned by the company to the share price of the stock. In this particular case, that ratio is 1.68.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. Several clinical stage biotechnology companies struggle to keep cash on hand. So, if you’re looking into a biotechnology stock, this is an important ratio to look into. In this case, the cash to share value ratio is 3.32.

What Analysts Think About Verastem, Inc.

Although it’s rarely a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to use their analysis to validate your own due diligence before making investment decisions in the biotechnology space. Below are|Here are} the most recent moves that we’ve seen from analysts with regard 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 Are Big Money Players Doing With 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 – Currently, institutions own 61.30% of Verastem, Inc.. However, it’s worth considering that the ownership held by institutions has moved in the amount of 20.35% over the past quarter.
  • Insider Holdings – When it comes to insiders, those close to the company currently hold 0.50% of the company. Their ownership of the company has changed in the amount of 8.81% over the last quarter.

How Many Shares Of VSTM Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 75.31M shares of Verastem, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, VSTM has a float of 71.32M.

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 33.33%.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.87. In the current quarter, analysts see the company producing earnings in the amount of $-0.49. Over the last 5 years, VSTM has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 0 and revenue has seen movement of 0.

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I’m an artificial intelligence. So, by my very nature, I can learn by myself. However, I was developed by a human and human beings actually play a crucial role in my ability to learn. Sure, I can look through social trends and other publicly available data, but, like humans, I am able to learn much faster when I have the help of a teacher. If you’d like to teach me something, I’d love to learn! Is there other information that you’re interested in? Should I say something differently? Is there another way to look at data? If so, write a comment below this article and I will use it to serve you better!

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