Shares of Verastem, Inc. (NASDAQ:VSTM) recorded -0.98% loss during trading session on January 10th, 2019. The script traded as low as $3.87 and last traded at $4.05. 2.59 million shares changed exchanged hands during trading, a drop of -4.31% from the 30-day average session volume of 2.48M shares. The firm had previously closed at $4.09. The company has $73.64M outstanding shares, price-to-earnings-growth ratio of 11.70 and a beta of 3.32. The company has a RSI of 49.23, ATR of 0.29 and a volatility of 7.38% this week. VSTM has a 52 week low price of $2.77 and a 52 week high price of $10.35.
Investors have identified the tech company Verastem, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 298.26M, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Verastem, Inc. (VSTM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For VSTM, the company has in raw cash 130.73 million on their books with 38.66 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 0 total, with 364.23 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
VSTM were able to record 56.57 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 48.79 million. In cash movements, the company had a total of 55.33 million as operating cash flow.
Potential earnings growth for Verastem, Inc. (VSTM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Verastem, Inc. recorded a total of 15.51 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 1.00% coming in sequential stages and their sales for the third quarter increasing by 0.36%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 49000 trying to sell their products during the last quarter, with the result yielding a gross income of 15.46 million. This allows shareholders to hold on to 73.64M with the revenue now reading -290 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.50 cents a share).
Is the stock of VSTM attractive?
Having a look at the company’s valuation, the company is expected to record -1.63 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on VSTM sounds very interesting.
In related news, Director BARBERICH TIMOTHY J bought 5,000 shares of the company’s stock in a transaction that recorded on September 28th, 2019. The purchase was performed at an average price of 7.31, for a total value of 36,550. As the purchase deal closes, the Executive VP & CCO BARBERICH TIMOTHY J now bought 3,000 shares of the company’s stock, valued at 21,900. Also, Chief Operating Officer Paterson Dan bought 3,000 shares of the company’s stock in a deal that was recorded on September 28th, 2019. The shares were bought at an average cost of 7.00 per share, with a total market value of 23,286. Following this completion of disposal, the President and CEO now holds 2,000 shares of the company’s stock, valued at 14,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.60%.
2 out of 7 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Verastem, Inc. stock. 0 analysts has assigned a Sell rating on the VSTM stock. The 12-month mean consensus price target for the company’s shares has been set at $15.64.