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

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Verastem, Inc. (VSTM) is making a move down in the market today. The stock, focused in the biotech industry, is presently priced at $3.24 after heading down 0.00% so far in today’s session. In terms of biotech stocks, there are quite a few factors that have the ability to cause movement in the market. One of the most common is news. Here are the most recent headlines associated with 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

However, any time investors are making an investing decision, prospective investors should look into much more than just news, especially in the speculative biotech industry. Here’s what’s happening with Verastem, Inc..

Recent Moves From VSTM

Although a move down on a single session, like what we’re seeing from Verastem, Inc. may lead to fear in some investors, that by itself should not be the basis of a decision to, or not to, invest in a company. It’s always important to look into trends experienced by the stock just a single session. When it comes to VSTM, here are the returns that we have seen:

  • Past 7 Days – In the last 5 trading sessions, VSTM has produced a change in price in the amount of 4.18%.
  • Monthly – The monthly returns from Verastem, Inc. comes to 1.89%.
  • Past 3 Months – Over the past 3 months, the company has produced a ROI that works out to -5.81%
  • Bi-Annually – In the past 6 months, we have seen a performance that amounts to -63.31% from the stock.
  • YTD – Since the open of this year VSTM has resulted in a return of -3.57%.
  • Full Year – Lastly, throughout the past full year, we’ve seen performance that comes to 3.18% out of VSTM. Over this period, the stock has sold at a high price of -68.70% and a low price of 24.14%.

Rations That Investors Should Look Into

Digging into various ratios associated with a stock generally gives investors an understanding of how risky and/or potentially profitable a an investment option may be. Here are a few of the key ratios to consider when digging into VSTM.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the stock is headed for declines. Across the sector, biotechnology stocks can carry a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the space. Nonetheless, as it relates to Verastem, Inc., it’s short ratio is 8.43.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure whether or not a company can cover its debts when they mature using quick assets or current assets. In the biotech space, companies rely heavily on the continuation of investor support, the current and quick ratios can look damning. However, quite a few good picks in the biotech industry do have great current and quick ratios. When it comes to 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 the price of shares to the book value of assets that are owned by the company. In this case, the book to share value ratio works out to 1.69.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the value of shares. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotech industry, this is a very important ratio to think about. In the case of VSTM, the cash to share value ratio is 3.15.

What Analysts Think About Verastem, Inc.

Although it’s rarely a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to consider their thoughts in order to validate your own due diligence when it comes to making investment decisions in the biotech sector. Here are the recent moves that we’ve seen from analysts when it comes 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

Moves From Big Money Players

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 own 61.20% of the company. Institutional interest has moved by 19.15% over the past three months. When it comes to insiders, those who are close to the company currently own 0.60% percent of VSTM shares. Institutions have seen ownership changes of an accumulative 15.39% over the last three months.

What You Need To Know About Share Counts

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 79.35M 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 67.16M.

I also like to take a look at the short percent. After all, if a large portion of the float available for trading is sold short, the overall feeling among traders is that the stock is going to lose value. When it comes to VSTM, the short percentage of the float is currently 35.40%. In general, high short percent of the float would be considered to be anything over 40%. Through my work, I have found that a 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 $-0.46. Over the last 5 years, VSTM has generated revenue in the amount of $0 with earnings coming in at 9.30%. On a quarter over quarter basis, earnings have seen movement of 64.50% and revenue has seen movement of 0.

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