Is Verastem Stock a Good Investment?
Verastem Investment Advice | VSTM |
- Examine Verastem's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Verastem's leadership team and their track record. Good management can help Verastem navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Biotechnology space and any emerging trends that could impact Verastem's business and its evolving consumer preferences.
- Compare Verastem's performance and market position to its competitors. Analyze how Verastem is positioned in terms of product offerings, innovation, and market share.
- Check if Verastem pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Verastem's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Verastem stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Verastem is a good investment.
Sell | Buy |
Strong Sell
Market Performance | OK | Details | |
Volatility | Unstable | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Moves slightly opposite to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Verastem Stock
Researching Verastem's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 66.0% of the company outstanding shares are owned by institutional investors. The company recorded a loss per share of 3.14. Verastem had not issued any dividends in recent years. The entity had 1:12 split on the 1st of June 2023.
To determine if Verastem is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Verastem's research are outlined below:
| Verastem is way too risky over 90 days horizon | |
| Verastem appears to be risky and price may revert if volatility continues | |
| Verastem has high likelihood to experience some financial distress in the next 2 years | |
| Net Loss for the year was (87.37 M) with profit before overhead, payroll, taxes, and interest of 10 M. | |
| Verastem currently holds about 94.31 M in cash with (86.46 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.5. | |
| Verastem has a frail financial position based on the latest SEC disclosures | |
| Roughly 66.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from investing.com: Verastem appoints new COO with extensive biotech experience |
Verastem uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Verastem. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Verastem's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 12th of March 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 12th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Verastem's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Verastem's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-05-09 | 2022-03-31 | -0.08 | -0.09 | -0.01 | 12 | ||
2023-03-14 | 2022-12-31 | -0.1 | -0.08 | 0.02 | 20 | ||
2021-08-02 | 2021-06-30 | -0.08 | -0.1 | -0.02 | 25 | ||
2022-11-03 | 2022-09-30 | -0.12 | -0.09 | 0.03 | 25 | ||
2016-11-07 | 2016-09-30 | -0.24 | -0.21 | 0.03 | 12 | ||
2021-03-18 | 2020-12-31 | -0.08 | -0.12 | -0.04 | 50 | ||
2018-08-08 | 2018-06-30 | -0.34 | -0.3 | 0.04 | 11 | ||
2016-03-03 | 2015-12-31 | -0.36 | -0.32 | 0.04 | 11 |
Verastem Target Price Consensus
Verastem target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Verastem's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 8 | Strong Buy |
Most Verastem analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Verastem stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Verastem, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationVerastem Target Price Projection
Verastem's current and average target prices are 6.22 and 11.86, respectively. The current price of Verastem is the price at which Verastem is currently trading. On the other hand, Verastem's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Verastem Target Price
Verastem Analyst Ratings
Verastem's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Verastem stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Verastem's financials, market performance, and future outlook by experienced professionals. Verastem's historical ratings below, therefore, can serve as a valuable tool for investors.Know Verastem's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Verastem is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Verastem backward and forwards among themselves. Verastem's institutional investor refers to the entity that pools money to purchase Verastem's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Kennedy Capital Management Inc | 2024-09-30 | 616.8 K | Ubs O'connor Llc | 2024-09-30 | 430.7 K | State Street Corp | 2024-09-30 | 424.3 K | Affinity Asset Advisors, Llc | 2024-09-30 | 400 K | Northern Trust Corp | 2024-09-30 | 286.6 K | Tang Capital Management Llc | 2024-09-30 | 270 K | Walleye Trading Advisors, Llc | 2024-09-30 | 216.1 K | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 172.8 K | Sio Capital Management, Llc | 2024-09-30 | 133.4 K | Nantahala Capital Management, Llc | 2024-09-30 | 3.7 M | Orbimed Advisors, Llc | 2024-09-30 | 2.9 M |
Verastem's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 268.37 M.Market Cap |
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Verastem's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.67) | (0.70) | |
| Return On Capital Employed | (0.86) | (0.90) | |
| Return On Assets | (0.67) | (0.70) | |
| Return On Equity | (1.75) | (1.84) |
Determining Verastem's profitability involves analyzing its financial statements and using various financial metrics to determine if Verastem is a good buy. For example, gross profit margin measures Verastem's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Verastem's profitability and make more informed investment decisions.
Evaluate Verastem's management efficiency
Verastem has return on total asset (ROA) of (0.4731) % which means that it has lost $0.4731 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (1.3687) %, meaning that it created substantial loss on money invested by shareholders. Verastem's management efficiency ratios could be used to measure how well Verastem manages its routine affairs as well as how well it operates its assets and liabilities. As of the 30th of January 2025, Return On Tangible Assets is likely to drop to -0.7. In addition to that, Return On Capital Employed is likely to drop to -0.9. At this time, Verastem's Other Current Assets are very stable compared to the past year. As of the 30th of January 2025, Net Tangible Assets is likely to grow to about 63.3 M, while Non Current Assets Total are likely to drop about 5.2 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.99 | 2.84 | |
| Tangible Book Value Per Share | 2.99 | 2.84 | |
| Enterprise Value Over EBITDA | (1.54) | (1.62) | |
| Price Book Value Ratio | 2.82 | 2.96 | |
| Enterprise Value Multiple | (1.54) | (1.62) | |
| Price Fair Value | 2.82 | 2.96 | |
| Enterprise Value | 34 M | 32.3 M |
Understanding the operational decisions made by Verastem management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Beta 0.136 |
Basic technical analysis of Verastem Stock
As of the 30th of January, Verastem has the Coefficient Of Variation of 660.29, risk adjusted performance of 0.136, and Semi Deviation of 4.29. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Verastem, as well as the relationship between them. Please validate Verastem jensen alpha and semi variance to decide if Verastem is priced more or less accurately, providing market reflects its prevalent price of 6.22 per share. Given that Verastem has jensen alpha of 1.25, we advise you to double-check Verastem's current market performance to make sure the company can sustain itself at a future point.Verastem's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Verastem insiders, such as employees or executives, is commonly permitted as long as it does not rely on Verastem's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Verastem insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Verastem's Outstanding Corporate Bonds
Verastem issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Verastem uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Verastem bonds can be classified according to their maturity, which is the date when Verastem has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Verastem's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Verastem's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.136 | |||
| Market Risk Adjusted Performance | (1.59) | |||
| Mean Deviation | 5.26 | |||
| Semi Deviation | 4.29 | |||
| Downside Deviation | 4.89 | |||
| Coefficient Of Variation | 660.29 | |||
| Standard Deviation | 7.96 | |||
| Variance | 63.29 | |||
| Information Ratio | 0.1408 | |||
| Jensen Alpha | 1.25 | |||
| Total Risk Alpha | 0.4847 | |||
| Sortino Ratio | 0.229 | |||
| Treynor Ratio | (1.60) | |||
| Maximum Drawdown | 50.66 | |||
| Value At Risk | (7.39) | |||
| Potential Upside | 12.91 | |||
| Downside Variance | 23.91 | |||
| Semi Variance | 18.38 | |||
| Expected Short fall | (6.39) | |||
| Skewness | 2.44 | |||
| Kurtosis | 9.5 |
| Risk Adjusted Performance | 0.136 | |||
| Market Risk Adjusted Performance | (1.59) | |||
| Mean Deviation | 5.26 | |||
| Semi Deviation | 4.29 | |||
| Downside Deviation | 4.89 | |||
| Coefficient Of Variation | 660.29 | |||
| Standard Deviation | 7.96 | |||
| Variance | 63.29 | |||
| Information Ratio | 0.1408 | |||
| Jensen Alpha | 1.25 | |||
| Total Risk Alpha | 0.4847 | |||
| Sortino Ratio | 0.229 | |||
| Treynor Ratio | (1.60) | |||
| Maximum Drawdown | 50.66 | |||
| Value At Risk | (7.39) | |||
| Potential Upside | 12.91 | |||
| Downside Variance | 23.91 | |||
| Semi Variance | 18.38 | |||
| Expected Short fall | (6.39) | |||
| Skewness | 2.44 | |||
| Kurtosis | 9.5 |
Consider Verastem's intraday indicators
Verastem intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Verastem stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 59381.25 | |||
| Daily Balance Of Power | 0.4524 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 6.07 | |||
| Day Typical Price | 6.12 | |||
| Price Action Indicator | 0.24 | |||
| Period Momentum Indicator | 0.19 |
Verastem Corporate Filings
8K | 23rd of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 21st of January 2025 Other Reports | ViewVerify | |
F4 | 14th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
Verastem Stock media impact
Far too much social signal, news, headlines, and media speculation about Verastem that are available to investors today. That information is available publicly through Verastem media outlets and privately through word of mouth or via Verastem internal channels. However, regardless of the origin, that massive amount of Verastem data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Verastem news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Verastem relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Verastem's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Verastem alpha.
Verastem Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Verastem can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Verastem Corporate Management
| Jonathan Pachter | Chief Officer | Profile | |
| Michael Crowther | Chief Officer | Profile | |
| Sean Flynn | Gen VP | Profile | |
| MD MSc | Head Strategy | Profile | |
| Robert Weinberg | CoFounder Board | Profile | |
| Daniel Calkins | Interim Officer | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Verastem. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. To learn how to invest in Verastem Stock, please use our How to Invest in Verastem guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Verastem. If investors know Verastem will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Verastem listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.14) | Revenue Per Share | Quarterly Revenue Growth (1.00) | Return On Assets | Return On Equity |
The market value of Verastem is measured differently than its book value, which is the value of Verastem that is recorded on the company's balance sheet. Investors also form their own opinion of Verastem's value that differs from its market value or its book value, called intrinsic value, which is Verastem's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Verastem's market value can be influenced by many factors that don't directly affect Verastem's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Verastem's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Verastem is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verastem's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.