Verastem, Inc. (NASDAQ:VSTM) Chief Financial Officer Daniel Calkins has sold a portion of his company shares, according to a recent SEC filing. The transaction, dated March 25, 2024, involved the sale of 25 shares of common stock at a price of $12.02 per share, totaling approximately $300.
The filing indicated that the sale was conducted to satisfy statutory withholding requirements related to the vesting of restricted stock units. Following this transaction, Calkins still owns 8,541 shares of Verastem directly. The company, which operates within the pharmaceutical preparations industry, has its shares publicly traded under the ticker symbol VSTM.
Investors often monitor insider transactions as they provide insights into executives' perspectives on their company's stock. While the sale by Calkins represents a relatively small amount, it is part of the ongoing financial activities within Verastem that shareholders may find of interest.
The company has not provided any additional comments regarding this transaction.
InvestingPro Insights
Verastem, Inc. (NASDAQ:VSTM) continues to navigate the challenging waters of the pharmaceutical industry. While insider sales can sometimes raise eyebrows among investors, it's important to look at the broader financial health and market performance of the company for a more comprehensive understanding.
InvestingPro data reveals a market capitalization of $299.75 million for Verastem, indicating its size within the competitive pharmaceutical landscape. Despite a challenging environment, Verastem boasts a significant achievement: it holds more cash than debt on its balance sheet, which is a reassuring sign of financial stability. This could provide some cushioning against market volatility or unexpected expenditures in research and development.
On the flip side, Verastem's gross profit margins have been under pressure, which is a concern for investors looking for sustainable profitability. The company's price-to-earnings (P/E) ratio stands at -3.00, reflecting investor skepticism about future earnings potential, as analysts do not anticipate the company will be profitable this year. With a negative operating income of $92.08 million over the last twelve months as of Q4 2023, the financial challenges are evident.
However, it's not all gloomy for Verastem. The company has experienced a strong return over the last three months, with a 39.64% price total return, and an even more impressive one-year price total return of 132.73%. This suggests that, despite profitability concerns, investors have found reasons to be optimistic about the company's stock performance.
For those interested in gaining deeper insights and additional metrics, there are more InvestingPro Tips available. These include analysis on the company's liquidity, profitability, and dividend policy. To explore these further, visit the Verastem page on InvestingPro and remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 8 more InvestingPro Tips listed, investors can make more informed decisions regarding their interest in VSTM.
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