Verastem CFO sells shares worth $257 to cover tax obligations

Verastem, Inc.'s (NASDAQ:VSTM ) Chief Financial Officer, Daniel Calkins, recently sold company shares valued at a total of $257, according to a new SEC filing. The transactions, which took place on September 20 and September 24, were executed at prices ranging from $2.68 to $2.8 per share.

The sales were conducted to satisfy statutory withholding requirements associated with the vesting of restricted stock units, as noted in the footnotes of the filing. On September 20, Calkins sold 65 shares at $2.80 each, and on September 24, he sold an additional 28 shares at $2.68 per share. Following these transactions, the CFO still owns 47,467 shares of Verastem common stock.

Investors often monitor insider sales as they can provide insights into an executive’s view of the company's stock value and financial health. In this case, the sales were related to tax obligations rather than discretionary trading, which is a routine practice for executives receiving stock-based compensation.

Verastem, Inc., headquartered in Needham, Massachusetts, operates in the pharmaceutical industry, focusing on developing and commercializing drugs to improve the survival and quality of life for cancer patients.



In other recent news, Verastem Oncology has seen a series of stock target adjustments from multiple financial firms. Truist Securities revised its stock price target for Verastem to $15.00, while maintaining a Buy rating. H.C. Wainwright and B.Riley also lowered their 12-month price targets for Verastem to $7.00, citing various concerns, yet both firms maintain a Buy rating. Mizuho Securities reduced its 12-month price target from $36.00 to $7.00, but continues to hold an Outperform rating on the stock.

These revised valuations reflect projections for Verastem's future financial performance, including estimates for peak revenues of key treatments. For instance, Truist Securities estimates unadjusted peak revenues of $564 million for the recurrent and refractory low-grade serous ovarian cancer treatment.

Additionally, Verastem recently received Orphan Drug Designation from the FDA for a drug combination aimed at treating pancreatic cancer. This designation could lead to incentives such as tax credits, FDA fee waivers, and potentially seven years of market exclusivity upon approval.

Verastem also disclosed plans to raise approximately $55 million through a proposed public offering, which is expected to fund ongoing clinical trials and research efforts. These recent developments are expected to significantly impact Verastem's operations and financial outlook.
InvestingPro Insights


Amidst the insider trading activity, Verastem, Inc. (NASDAQ:VSTM) presents a mixed financial landscape. An InvestingPro Tip highlights that Verastem holds more cash than debt on its balance sheet, which can be a positive sign of the company's ability to manage its financial obligations. Additionally, Verastem's liquid assets exceed its short-term obligations, suggesting a stable short-term financial position.

However, it's worth noting that Verastem has not been profitable over the last twelve months, and analysts do not anticipate the company will be profitable this year. This aligns with the InvestingPro Data showing a negative P/E ratio of -0.8 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at -1.21. The company's Price / Book ratio stands at 5.72, which may indicate that the stock is trading at a premium relative to the company's book value.

Despite the recent insider sales for tax obligations, Verastem's stock price has experienced significant volatility. The price has fallen by 71.75% over the last year, and the 6-month price total return shows a steep decline of 77.24%. This data may be of particular interest to investors considering the stock's performance and market sentiment.

For those looking for a deeper dive into Verastem's financials and stock performance, there are additional InvestingPro Tips available at InvestingPro. These tips can provide further insights that may help investors make more informed decisions.

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Source: Investing.com