Verastem, Inc. has seen an upward adjustment in its earnings per share (EPS) estimates for fiscal year 2025, according to a report from HC Wainwright issued on February 5, 2025. Analyst A. Maldonado now projects that the biopharmaceutical company will record a loss of ($3.19) per share, an improvement from the previous estimate of ($3.21). HC Wainwright has maintained a “Buy” rating on the stock and set a target price of $18.00.
The consensus estimate for Verastem’s current full-year earnings stands at ($3.02) per share. In addition to the annual forecast, HC Wainwright provided insights into quarterly projections, estimating earnings for the fourth quarter of 2025 at ($0.49) EPS, and for the first quarter of 2026 at ($0.46) EPS. The estimates continue with ($0.45) EPS for Q2 2026, ($0.43) EPS for Q3 2026, and ($0.33) EPS for Q4 2026. Overall, FY2026 earnings are projected at ($1.66) EPS and FY2027 earnings at ($0.40) EPS.
Recent assessments from various analysts reflect a mixed outlook for Verastem. On January 21, Weiss Ratings reiterated a “sell (d-)” rating. Conversely, Mizuho set a price target of $15.00 on October 29, while Cantor Fitzgerald upgraded the stock to a “strong-buy” rating on October 30. Guggenheim expressed confidence with a “buy” rating on December 30, and the Royal Bank of Canada issued an “outperform” rating with a target price of $13.00 on October 20.
Currently, the stock has received ratings from ten research analysts: two rated it as a Strong Buy, six assigned a Buy rating, one gave a Hold rating, and one rated it as a Sell. Data from MarketBeat indicates an average rating of “Moderate Buy” with a consensus price target of $15.83.
Stock Performance and Market Position
On February 5, 2025, shares of Verastem opened at $6.65. The company’s fifty-day moving average price is $7.68, while the two-hundred-day average stands at $8.31. Over the past year, Verastem has experienced a low of $4.01 and a high of $11.24. The firm has a market capitalization of approximately $444.09 million, a P/E ratio of -1.65, and a beta of 0.41. Its financial ratios indicate a current ratio of 2.58, a quick ratio of 2.55, and a debt-to-equity ratio of 2.06.
Insider Trading Activity
Recent insider trading activity has also drawn attention. Director Paul A. Bunn sold 6,250 shares on November 21, 2024, at an average price of $10.00, totaling $62,500. Following this transaction, he retained 2,083 shares valued at approximately $20,830, marking a significant reduction in his ownership by 75.00%. Another director, Michael Kauffman, sold 8,550 shares on the same day, also at an average price of $10.00, accumulating $85,500. Post-sale, he holds 8,666 shares valued at $86,660, representing a 49.66% decrease in ownership.
In total, insiders have sold 50,478 shares worth $462,045 in the past three months. Currently, insiders hold 2.10% of the company’s stock.
Institutional Ownership Shifts
Institutional investors have also been active with their holdings. The Manufacturers Life Insurance Company increased its stake in Verastem by 9.8% during the second quarter, now owning 16,188 shares valued at $67,000. Aries Wealth Management raised its position by 10.5% in the third quarter, acquiring an additional 2,500 shares to hold 26,249 shares valued at $232,000.
Other noteworthy changes include Russell Investments Group Ltd. boosting its holdings by 182.9%, now owning 4,578 shares worth $40,000. BNP Paribas Financial Markets increased its holdings by 110.9%, acquiring 8,550 shares valued at $75,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. also raised its position by 28.8%, owning 29,945 shares valued at $124,000.
Currently, institutional investors hold 88.37% of Verastem’s shares, indicating strong institutional confidence in the company’s future prospects.
Verastem, based in Needham, Massachusetts, focuses on the discovery and development of small molecule therapies aimed at treating cancer. Its lead product, COPIKTRA (duvelisib), is an oral inhibitor targeting specific cancer pathways, demonstrating the company’s commitment to precision medicine in oncology.
