Verastem, Inc.'s (NASDAQ:VSTM) Chief Financial Officer, Daniel Calkins, has recently engaged in transactions involving the company's common stock, according to a new SEC filing. On June 20, 2024, Calkins sold a total of 67 shares at a price of $3.16 per share, amounting to a total sale value of $211. This sale was conducted to satisfy statutory withholding requirements related to the vesting of restricted stock units (RSUs).
The RSUs in question were granted under Verastem's Amended and Restated 2021 Equity Incentive Plan. Each RSU represents a contingent right to receive one share of Verastem's common stock. The RSUs are set to vest in increments of 33.3% on the anniversaries of the grant date, which is June 18, 2024. The vesting schedule is designed to be completed by June 18, 2027, assuming Calkins continues his service with the company.
The filing also disclosed that on June 18, 2024, Calkins was awarded 38,850 RSUs. These units do not represent immediate ownership of shares but will convert to common stock upon vesting over the next three years. Following the recent sale, Calkins directly owns 47,318 shares of Verastem.
Investors and market watchers often monitor insider transactions as they provide insights into executives' perspectives on their company's stock. The transactions by Verastem's CFO are part of the regular financial activities executives undertake and are fully disclosed in compliance with SEC regulations.
In other recent news, Verastem Oncology has been actively making strides in its oncology-focused pipeline. The company's lead drug avutometinib/defactinib, developed for low-grade serous ovarian cancer (LGSOC) in the KRAS mutant population, has had its price target revised from $32.00 to $16.00, as indicated by RBC Capital Markets. Despite this, the drug maintains an "approvable" profile for its targeted indication. Verastem has initiated a rolling New Drug Application (NDA) submission, which is expected to be completed in the second half of 2024.
In addition, Verastem announced promising interim results from its ongoing RAMP 205 Phase 1/2 clinical trial for the treatment of metastatic pancreatic cancer. The company is also planning a potential product launch in 2025 for avutometinib/defactinib in LGSOC. These are just a few of the recent developments within the company.
It's worth noting that while RBC Capital Markets and BTIG have adjusted their price targets for Verastem, they maintain a positive outlook for the company, emphasizing the potential of its drug pipeline. These analyses provide valuable insights into the company's trajectory, but as always, investors should conduct their own thorough research.
InvestingPro Insights
As Verastem, Inc. (NASDAQ:VSTM) navigates through its financial and operational phases, certain metrics and analyst activities provide a deeper insight into the company's current standing. The market capitalization of Verastem stands at a modest $82.81 million, reflecting the size and scale of the company within the biotechnology sector. Notably, the company's price-to-earnings (P/E) ratio is currently negative at -0.75, indicating that investors are dealing with a company that has recently reported losses. The adjusted P/E ratio for the last twelve months as of Q1 2024 is similarly negative at -0.78.
From an operational standpoint, Verastem reported an operating income and EBITDA of approximately -$100.8 million for the same period, underscoring the financial challenges the company faces. This is further emphasized by a significant EBITDA growth decline of -34.02% over the last twelve months as of Q1 2024. In terms of stock performance, Verastem has experienced a steep 1-month price total return of -73.05%, which aligns with the 3-month return of -72.76%, indicating a pronounced downward trend in the stock's price.
Amidst these financial figures, certain InvestingPro Tips suggest factors that investors may want to consider. 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, two analysts have revised their earnings upwards for the upcoming period, which could signal a potential shift in the company's financial trajectory. However, it is important to note that Verastem is quickly burning through cash and suffers from weak gross profit margins, which could be areas of concern for investors.
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