Verastem, Inc. (NASDAQ:VSTM) Chief Financial Officer Daniel Calkins has sold a portion of his company shares, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on October 7, involved the sale of shares at a price of $2.86 each, totaling $17.
The sale was conducted to satisfy statutory withholding requirements related to the vesting of restricted stock units, as noted in the filing's footnotes. Following the sale, Calkins still retains 47,461 shares of Verastem's common stock, indicating a continued investment in the company's future.
Verastem, based in Needham, Massachusetts, operates within the pharmaceutical preparations industry and focuses on developing and commercializing therapies to improve the lives of cancer patients.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on their company's prospects. While the sale by Calkins was relatively small and for personal tax obligations, it can still be of interest to those following Verastem's stock performance and insider confidence levels.
In other recent news, Verastem has seen several financial firms adjust their stock price targets. Truist Securities reduced its target to $15, maintaining a Buy rating based on future financial performance projections, which include estimated peak revenues for key treatments in the areas of low-grade serous ovarian cancer and non-small cell lung cancer. H.C. Wainwright also lowered its 12-month price target for Verastem to $7, despite maintaining a Buy rating. The firm projects that Verastem will report total revenues of $10 million for the full year 2024.
Verastem recently announced a public offering of its common stock and warrants to fund potential drug launches and ongoing clinical research. This followed the company's receipt of the FDA's Orphan Drug Designation for a drug combination intended to treat pancreatic cancer. Mizuho Securities revised its 12-month price target for Verastem to $7, maintaining an Outperform rating, while B.Riley and RBC (TSX:RY) Capital Markets also lowered their price targets due to various concerns.
Despite these changes, all firms maintain a positive or outperform rating on Verastem's stock. The company has disclosed plans to raise approximately $55 million through a proposed public offering and has initiated a rolling New Drug Application submission process for its drug candidate avutometinib/defactinib. These are recent developments that will likely impact the company's ongoing clinical trials and research efforts.
InvestingPro Insights
While Verastem's CFO Daniel Calkins recently sold a small portion of shares, a deeper look at the company's financial metrics from InvestingPro reveals a more complex picture. Despite the recent insider sale, Verastem's stock has shown a strong return over the last month, with a 16.33% price increase. This short-term performance contrasts sharply with the company's longer-term trajectory, as the stock has taken a significant hit over the last six months, declining by 75.13%.
InvestingPro data indicates that Verastem has a market capitalization of $120.13 million, reflecting its current valuation in the pharmaceutical preparations industry. The company's financial health presents a mixed bag. On one hand, an InvestingPro Tip highlights that Verastem holds more cash than debt on its balance sheet, which could provide some financial flexibility. Additionally, the company's liquid assets exceed short-term obligations, suggesting a degree of short-term stability.
However, investors should note that Verastem is not currently profitable, with a negative P/E ratio of -1.35 for the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year. The company's revenue for the same period stands at $10 million, with an operating income margin of -987.84%, underscoring the challenges it faces in achieving profitability.
For those interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Verastem, providing a deeper understanding of the company's financial position and market performance.
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