Verastem, Inc. (VSTM) Stock: Seeing Gains In Today’s Session

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Verastem, Inc. (VSTM) is working its way for to the top in the market today. The company, focused in the biotech industry, is currently trading at $3.38 after gaining 8.68% so far today. As it relates to biotechnology companies, there are several factors that have the ability to lead to price movement in the market. One of the most common is news. Here are the most recent headlines surrounding VSTM:

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Mar-18-19 04:08PM Edited Transcript of VSTM earnings conference call or presentation 12-Mar-19 8:30pm GMT
Mar-14-19 03:00PM 3 Penny Stocks That Could Make You Rich — or Regretful
Mar-13-19 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 a decision with regard to investing, investors should look at much more than just news, this is especially the case in the generally speculative biotechnology sector. Here’s what’s going on with Verastem, Inc..

Recent Trends From VSTM

Although a move toward the top in a single session, like the move that we’re seeing from Verastem, Inc. may make some investors jump for joy, a single session move alone should not be the reason for a decision to, or not to, invest in a stock. It’s always a good idea to look at trends experienced by the stock further out than a single trading session. As it relates to VSTM, below are the returns that investors have seen:

  • Past 5 Sessions – Throughout the last week, VSTM has generated a price change amounting to 13.80%.
  • Monthly – The monthly returns from Verastem, Inc. comes to 9.74%.
  • Quarterly – Over the past three months, the company has generated a return on investment of -18.16%
  • Past Six Months – Throughout the past six months, we’ve seen a change that works out to -61.59% from the company.
  • YTD – Since the the first trading session of this year VSTM has generated a ROI of 0.60%.
  • Full Year – Finally, over the past year, we have seen performance that works out to 3.05% out of VSTM. Over this period, the stock has traded at a high of -67.34% and a low of 29.50%.

Key Ratios

Looking at various ratios associated with a company can provide investors an understanding of just how dangerous and/or rewarding a stock pick might be. Below are a few of the important ratios to look at when digging into VSTM.

Short Ratio – The short ratio is a tool that’s used by traders to measure the level of short interest. As the ratio goes higher, it shows that more investors believe that the value of the stock is headed for declines. In general, biotech stocks tend to carry a higher short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, with regard to Verastem, Inc., it’s short ratio comes to 8.15.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay its debts when they come due using quick assets or current assets. In the biotechnology space, companies rely on the continuation of support from investors, the current and quick ratios can look damning. Nonetheless, some gems in the biotechnology space come with positive quick and current ratios. In terms of VSTM, the quick and current ratios work out to 6.80 and 6.80 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets currently owned by the company to the share price. when it comes to Verastem, Inc., that ratio works out to 1.68.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the price of shares. Several clinical stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotech industry, this is a very important ratio to look into. In this case, the cash to share value ratio is 3.32.

Analyst Opinions With Regard To Verastem, Inc.

While it’s not a smart idea to blindly follow the opinions of analysts, it is a good idea to use their thoughts to validate your own before making an investment decision in the biotechnology industry. Below you’ll find the recent moves that we’ve 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:

  • Institutions – Currently, institutions own 61.30% of VSTM. On the other hand, it is important to note that the ownership held by institutions has seen a move of 20.35% in the last 3 months.
  • Investors On The Inside – When it comes to insiders, those close to the situation currently own 0.50% of the company. Their ownership of the company has changed in the amount of 8.81% in the past quarter.

Looking At Share Counts

Traders seem to like to know the counts of shares both outstanding and available. As far as Verastem, Inc., there are currently 75.31M and there is a float of 71.32M. These numbers mean that out of the total of 75.31M shares of VSTM in existence today, 71.32M are available to be traded by the public.

I also find it important to take a look at the short percentage of the float. After all, when a large percentage of the float available for trading is shorted, the overall feeling in the market is that the stock is headed for a dive. With regard to VSTM, the percentage of the float that is currently being sold short is 33.33%. In general, high short percent of the float would be considered to be anything over 40%. However, I have found that any short percent of the float over 26% is generally a a play that could prove to be very risky.

What We’ve Seen In Financial Results

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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