Dan Paterson, President and CEO of Verastem, Inc. (NASDAQ:VSTM), sold 812 shares of the company's common stock on November 5, according to a recent SEC filing. The shares were sold at a price of $3.84 each, amounting to a total transaction value of $3,118. The sale was made to satisfy statutory withholding requirements related to the vesting of restricted stock units. Following this transaction, Paterson holds 231,576 shares directly.
In other recent news, the biopharmaceutical company Verastem has been the subject of several analyst notes. Truist Securities maintained a Buy rating on Verastem, keeping a $15.00 price target, despite a significant decline in the company's share price following an update on their accelerated pathway opportunity focusing on KRAS mutations. Truist also reduced Verastem's stock target from $18.00 to $15.00, based on a detailed financial evaluation that included projections for the company's future financial performance.
H.C. Wainwright has also adjusted its outlook on Verastem, lowering the 12-month price target to $7.00 but maintaining a Buy rating. This adjustment followed Verastem's report of second-quarter financial results, which included milestone payments that exceeded expectations.
In addition to the analyst notes, Verastem recently received the FDA's Orphan Drug Designation for a drug combination aimed at treating pancreatic cancer. The company also announced plans to raise approximately $55 million through a public offering. These are recent developments that are expected to significantly impact Verastem's operations and financial outlook.
InvestingPro Insights
As Dan Paterson's recent stock sale aligns with statutory requirements, it's crucial to examine Verastem's financial health for a comprehensive view. According to InvestingPro data, Verastem's market capitalization stands at $145.08 million, reflecting its current market valuation.
InvestingPro Tips highlight that Verastem holds more cash than debt on its balance sheet, which could provide financial flexibility in its operations. This is particularly important given that the company is quickly burning through cash, another insight provided by InvestingPro.
The company's stock has shown strong performance in the short term, with a 35.31% return over the last month and an impressive 74.32% return over the last three months. However, it's worth noting that the stock has taken a significant hit over the last six months, with a -66.11% price total return.
These contrasting trends underscore the volatility in Verastem's stock performance, which investors should consider alongside the company's financial position. For a more comprehensive analysis, InvestingPro offers 12 additional tips that could provide deeper insights into Verastem's financial outlook and market position.
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