Verastem Stock Buy Hold or Sell Recommendation
| VSTM Stock | USD 9.31 0.30 3.12% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Verastem is 'Sell'. Macroaxis provides Verastem buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Verastem positions. The advice algorithm takes into account all of Verastem's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Verastem's buy or sell advice are summarized below:
Real Value 14.24 | Target Price 30.5 | Hype Value 9.32 | Market Value 9.31 | Naive Value 8.16 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Verastem given historical horizon and risk tolerance towards Verastem. When Macroaxis issues a 'buy' or 'sell' recommendation for Verastem, the advice is generated through an automated system that utilizes algorithms and statistical models.
Verastem |
Execute Verastem Buy or Sell Advice
The Verastem recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Verastem. Macroaxis does not own or have any residual interests in Verastem or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Verastem's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Sell
Market Performance | Very Weak | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Verastem Trading Alerts and Improvement Suggestions
| Verastem generated a negative expected return over the last 90 days | |
| Verastem has high historical volatility and very poor performance | |
| Verastem has a very high chance of going through financial distress in the upcoming years | |
| Net Loss for the year was (87.37 M) with profit before overhead, payroll, taxes, and interest of 2.6 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 67.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from news.google.com: Disposition of 478 shares by Brian Stuglik of Verastem at 9.91 subject to Rule 16b-3 |
Verastem Returns Distribution Density
The distribution of Verastem's historical returns is an attempt to chart the uncertainty of Verastem's future price movements. The chart of the probability distribution of Verastem daily returns describes the distribution of returns around its average expected value. We use Verastem price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Verastem returns is essential to provide solid investment advice for Verastem.
| Mean Return | -0.15 | Value At Risk | -5.43 | Potential Upside | 6.50 | Standard Deviation | 4.11 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Verastem historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Verastem Stock 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 originates 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 | Longwood Capital Partners Llc | 2023-12-31 | 232.2 K | Geode Capital Management, Llc | 2023-12-31 | 232.1 K | Opaleye Management Inc | 2023-12-31 | 211.4 K | Sectoral Asset Management Inc | 2023-12-31 | 203.3 K | Vontobel Holding Ltd. | 2023-12-31 | 203.3 K | Susquehanna International Group, Llp | 2023-12-31 | 162.3 K | Jefferies Financial Group Inc | 2023-12-31 | 159.5 K | Alphacentric Advisors, Llc | 2023-12-31 | 150 K | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 143.6 K | Viking Global Investors Lp | 2023-12-31 | 2.5 M | Bvf Inc | 2023-09-30 | 1.7 M |
Verastem Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (51.3M) | (11.2M) | (46.5M) | 54.3M | 3.9M | 4.7M | |
| Free Cash Flow | (138.5M) | (33.5M) | (53.7M) | (63.7M) | (86.5M) | (90.8M) | |
| Depreciation | 2.2M | 1.3M | 72K | (36K) | 62K | 58.9K | |
| Other Non Cash Items | 7.1M | 10.3M | 9.3M | 228K | (1.7M) | (1.7M) | |
| Capital Expenditures | 23.5M | 7K | 33K | 196K | 0.0 | 6.7K | |
| Net Income | (149.2M) | (67.7M) | (71.2M) | (73.8M) | (87.4M) | (91.7M) | |
| End Period Cash Flow | 79.3M | 68.0M | 21.5M | 75.8M | 78.8M | 57.3M | |
| Investments | 89.6M | (47.4M) | 283K | 66.2M | (43.9M) | (41.7M) | |
| Change To Netincome | 8.5M | 10.9M | 7.7M | 6.0M | 5.4M | 6.6M | |
| Net Borrowings | (2.5M) | (37.4M) | 1.1M | 24.1M | 21.7M | 17.7M | |
| Change Receivables | (2.2M) | 2.3M | (277K) | 485K | 557.8K | 585.6K |
Verastem Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Verastem or Biotechnology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Verastem's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Verastem stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.29 | |
β | Beta against NYSE Composite | 1.62 | |
σ | Overall volatility | 3.97 | |
Ir | Information ratio | -0.06 |
Verastem Volatility Alert
Verastem exhibits very low volatility with skewness of 0.8 and kurtosis of 1.9. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Verastem's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Verastem's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Verastem Fundamentals Vs Peers
Comparing Verastem's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Verastem's direct or indirect competition across all of the common fundamentals between Verastem and the related equities. This way, we can detect undervalued stocks with similar characteristics as Verastem or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Verastem's fundamental indicators could also be used in its relative valuation, which is a method of valuing Verastem by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Verastem to competition |
| Fundamentals | Verastem | Peer Average |
| Return On Equity | -1.39 | -0.31 |
| Return On Asset | -0.47 | -0.14 |
| Current Valuation | 172.87 M | 16.62 B |
| Shares Outstanding | 25.31 M | 571.82 M |
| Shares Owned By Insiders | 0.57 % | 10.09 % |
| Shares Owned By Institutions | 66.78 % | 39.21 % |
| Number Of Shares Shorted | 634.47 K | 4.71 M |
| Price To Earning | (3.02) X | 28.72 X |
| Price To Book | 4.98 X | 9.51 X |
| Price To Sales | 30.96 X | 11.42 X |
| Gross Profit | 2.6 M | 27.38 B |
| EBITDA | (92.02 M) | 3.9 B |
| Net Income | (87.37 M) | 570.98 M |
| Cash And Equivalents | 94.31 M | 2.7 B |
| Cash Per Share | 0.50 X | 5.01 X |
| Total Debt | 41.56 M | 5.32 B |
| Debt To Equity | 0.50 % | 48.70 % |
| Current Ratio | 4.87 X | 2.16 X |
| Book Value Per Share | 2.27 X | 1.93 K |
| Cash Flow From Operations | (86.46 M) | 971.22 M |
| Short Ratio | 3.79 X | 4.00 X |
| Earnings Per Share | (3.96) X | 3.12 X |
| Price To Earnings To Growth | (1.89) X | 4.89 X |
| Target Price | 28.79 | |
| Number Of Employees | 73 | 18.84 K |
| Beta | 0.53 | -0.15 |
| Market Capitalization | 243.21 M | 19.03 B |
| Total Asset | 149.72 M | 29.47 B |
| Retained Earnings | (824.89 M) | 9.33 B |
| Working Capital | 117.3 M | 1.48 B |
| Current Asset | 110.84 M | 9.34 B |
| Current Liabilities | 10.11 M | 7.9 B |
| Net Asset | 149.72 M |
Note: Disposition of tradable shares by Daniel Calkins of Verastem at 10.87 subject to Rule 16b-3 [view details]
Verastem Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Verastem . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Verastem Buy or Sell Advice
When is the right time to buy or sell Verastem? Buying financial instruments such as Verastem Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 15.6M | 15.0M | 17.9M | 9.3M | Total Assets | 108.7M | 95.1M | 149.7M | 125.4M |
Use Investing Ideas to Build Portfolios
In addition to having Verastem in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run FinTech Thematic Idea Now
FinTech
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The FinTech theme has 81 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize FinTech Theme or any other thematic opportunities.
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Check out Verastem Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in Verastem Stock, please use our How to Invest in Verastem guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Complementary Tools for Verastem Stock analysis
When running Verastem's price analysis, check to measure Verastem's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Verastem is operating at the current time. Most of Verastem's value examination focuses on studying past and present price action to predict the probability of Verastem's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Verastem's price. Additionally, you may evaluate how the addition of Verastem to your portfolios can decrease your overall portfolio volatility.
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Is Verastem's industry 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 (3.96) | Quarterly Revenue Growth (1.00) | Return On Assets (0.47) | Return On Equity (1.39) |
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.
Please note, there is a significant difference between Verastem's value and its price as these two are different measures arrived at by different 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.