Is Verastem Inc (VSTM) Stock a Good Buy for Short-term Investors?

At the time of writing, Verastem Inc [VSTM] stock is trading at $4.57, up 12.84%. An important factor to consider is whether the stock is rising or falling in short-term value. The VSTM shares have gain 20.58% over the last week, with a monthly amount glided 26.94%, and seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Verastem Inc [NASDAQ: VSTM] stock has seen the most recent analyst activity on September 30, 2024, when Guggenheim initiated its Buy rating and assigned the stock a price target of $13. On September 27, 2023, B. Riley Securities initiated with a Buy rating and assigned a price target of $21 on the stock. Mizuho upgraded its rating to a Buy and increased its price target to $36 on June 15, 2023. In a note dated April 14, 2022, RBC Capital Mkts initiated an Outperform rating and provided a target price of $5 on this stock.

For the past year, the stock price of Verastem Inc fluctuated between $2.10 and $14.22. Currently, Wall Street analysts expect the stock to reach $8.33 within the next 12 months. Verastem Inc [NASDAQ: VSTM] shares were valued at $4.57 at the most recent close of the market. An investor can expect a potential return of 82.28% based on the average VSTM price forecast.

Analyzing the VSTM fundamentals

Gross Profit Margin for this corporation currently stands at 1.0% with Operating Profit Margin at -11.32%, Pretax Profit Margin comes in at -9.24%, and Net Profit Margin reading is -9.24%. To continue investigating profitability, this company’s Return on Assets is posted at -0.74, Equity is -2.13 and Total Capital is -1.29. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 3.68.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 4.18 points at the first support level, and at 3.78 for the second support level. However, for the 1st resistance point, the stock is sitting at 4.87, and for the 2nd resistance point, it is at 5.16.

Ratios To Look Out For

It is important to note that Verastem Inc [NASDAQ:VSTM] has a current ratio of 3.23. On the other hand, the Quick Ratio is 3.23, and the Cash Ratio is 3.03. Considering the valuation of this stock, the price to sales ratio is 22.95, the price to book ratio is 16.64.

Transactions by insiders

Recent insider trading involved Paterson Dan, President and CEO, that happened on Nov 05 ’24 when 812.0 shares were sold. Chief Financial Officer, Calkins Daniel completed a deal on Oct 07 ’24 to sell 6.0 shares. Meanwhile, Chief Financial Officer Calkins Daniel sold 65.0 shares on Sep 20 ’24.

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