Verastem, Inc. (NASDAQ:VSTM) director Robert E. Gagnon has recently sold a portion of his holdings in the company. The transactions, which took place on March 18 and 19, 2024, involved the sale of company common stock totaling over $4,000.
The sales were executed at prices ranging from $10.38 to $10.71 per share. On March 18, Gagnon sold 283 shares at $10.71 each, and on the following day, he sold an additional 130 shares at $10.38 per share. The total value of the shares sold by Gagnon amounted to approximately $4,380.
It is noted in the footnotes of the filing that the sales reported were to satisfy statutory withholding requirements connected to the vesting of restricted stock units. This is a common practice for executives and directors to cover tax obligations that arise when equity awards vest.
Following these transactions, Gagnon's remaining direct ownership in Verastem stands at 27,391 shares. The company, which specializes in pharmaceutical preparations, has not made any additional comments regarding these sales.
Investors and followers of Verastem, Inc. will likely keep an eye on insider transaction activity as an indicator of management's perspective on the company's current valuation and future prospects.
InvestingPro Insights
Recent insider transactions at Verastem, Inc. (NASDAQ:VSTM) have drawn attention to the company's financial health and market performance. An analysis using InvestingPro's tools provides a deeper understanding of the company's position. Verastem's market capitalization stands at a modest $298.23 million, reflecting its status in the pharmaceutical preparations sector.
InvestingPro data shows that the company's Price to Earnings (P/E) ratio is currently negative at -3.02, indicating that the company is not generating profits relative to its share price. This aligns with one of the InvestingPro Tips that analysts do not expect Verastem to be profitable this year. Additionally, the Price to Book (P/B) ratio is at 5.2, suggesting that the market values the company at over five times its book value.
A noteworthy InvestingPro Tip for potential investors is that Verastem holds more cash than debt on its balance sheet, which could provide some financial stability despite the company's challenges with profitability. Moreover, Verastem's liquid assets exceed its short-term obligations, indicating a strong liquidity position. This could be a crucial factor for investors considering the volatility in the pharmaceutical industry.
On the performance front, Verastem has had a high return over the last year, with a 108.29% price total return, and a strong return over the last three months at 45.56%. However, it's important to note that the company does not pay dividends, which might influence the investment strategy of income-focused shareholders.
For those looking to delve deeper into Verastem's financials and strategic outlook, InvestingPro offers additional insights. There are currently 7 more InvestingPro Tips available to help investors make informed decisions. To access these tips and more detailed analytics, consider subscribing to InvestingPro, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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