Exploring Verastem, Inc. (VSTM) Investor Profile: Who’s Buying and Why?

Ever wondered who's investing in Verastem, Inc. (VSTM) and what's driving their decisions? As of December 31, 2024, institutional investors held a significant 69.41% of Verastem's shares, with a total of 35,740,216 shares held by 177 institutions. Are these investments a bet on Verastem's innovative cancer therapies, like COPIKTRA, or are other factors at play? With major players like BlackRock, Inc. and Vanguard Group Inc. among the top shareholders, let's delve into the details of Verastem's investor profile and explore the 'why' behind their investments, considering the company's reported net loss of $66.1 million for the nine months ending September 30, 2024, and cash, cash equivalents, and investments totaling $113.2 million.

Verastem, Inc. (VSTM) Who Invests in Verastem, Inc. and Why?

Understanding the investor profile of Verastem, Inc. (VSTM) provides valuable insights into the market's perception of the company. Analyzing who is investing and their motivations can reveal key factors driving the stock's performance and potential future trajectory. The investor base typically includes a mix of retail investors, institutional investors, and hedge funds, each with their own investment strategies and objectives.

Key Investor Types:

The investor base of Verastem, Inc. (VSTM) can be categorized into several key types:

• Retail Investors: These are individual investors who buy and sell shares for their own accounts. Retail investors may be attracted to Verastem, Inc. (VSTM) due to its growth potential in the biotechnology sector, particularly if they are following the company's clinical trials and drug development progress.
• Institutional Investors: These include mutual funds, pension funds, insurance companies, and other large entities that invest on behalf of their clients. Institutional investors often conduct in-depth research and analysis before investing, focusing on long-term growth prospects and risk management.
• Hedge Funds: These are investment partnerships that use various strategies to generate returns for their investors. Hedge funds may take both long and short positions in Verastem, Inc. (VSTM), depending on their assessment of the company's prospects and market conditions.

Investment Motivations:

Investors are drawn to Verastem, Inc. (VSTM) for a variety of reasons, often linked to the company's potential and position within the biotechnology industry:

• Growth Prospects: The biotechnology sector is known for its high-growth potential, and Verastem, Inc. (VSTM) is no exception. Positive clinical trial results, FDA approvals, and successful commercialization of its drugs can significantly boost investor confidence.
• Market Position: Verastem, Inc. (VSTM)'s strategic positioning in targeted cancer therapies may attract investors looking for companies with a competitive edge. Its focus on specific therapeutic areas and partnerships can enhance its market position.

Investment Strategies:

Different investors adopt various strategies when investing in Verastem, Inc. (VSTM), reflecting their individual risk tolerance and investment goals:

• Long-Term Holding: Some investors may choose to hold Verastem, Inc. (VSTM) shares for the long term, betting on the company's ability to develop and market successful cancer therapies. This strategy is common among institutional investors who conduct thorough fundamental analysis.
• Short-Term Trading: Other investors, particularly hedge funds and some retail investors, may engage in short-term trading, seeking to profit from price fluctuations driven by news releases, clinical trial updates, and market sentiment.
• Value Investing: Value investors may see Verastem, Inc. (VSTM) as undervalued based on its assets, potential future earnings, and market capitalization. They may invest with the expectation that the market will eventually recognize the company's true value.

Understanding the dynamics of investor behavior and motivations can offer valuable insights into the potential future performance of Verastem, Inc. (VSTM). Analyzing the composition of its investor base and the strategies they employ provides a comprehensive view of market sentiment and expectations.

For additional insights into Verastem, Inc.'s financial health, see: Breaking Down Verastem, Inc. (VSTM) Financial Health: Key Insights for Investors

Verastem, Inc. (VSTM) Institutional Ownership and Major Shareholders of Verastem, Inc. (VSTM)

Institutional ownership in Verastem, Inc. (VSTM) reflects significant interest from various financial entities. As of recent filings, 177 institutional owners and shareholders have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC), holding a total of 35,740,216 shares.

Here's a list of the top institutional investors in Verastem, Inc. (VSTM) and their shareholdings, as of December 31, 2024:

• Balyasny Asset Management L.P.: 3,945,927 shares
• Nantahala Capital Management, LLC: 3,752,583 shares
• Orbimed Advisors Llc: 2,862,448 shares
• AIGH Capital Management LLC: 2,665,043 shares
• BlackRock, Inc.: 2,441,511 shares
• Vanguard Group Inc.: 2,311,514 shares
• Soleus Capital Management, L.P.: 2,184,026 shares
• Bvf Inc/il: 2,100,468 shares
• Vivo Capital, LLC: 1,538,461 shares

These major shareholders include a mix of hedge funds, investment firms, and mutual fund companies. These institutions can significantly influence the company’s stock due to the size of their holdings.

Changes in Ownership

Recent data indicates notable changes in institutional ownership. In the last quarter, the total shares owned by institutions increased by 26.61% to 35,766K shares. Specifically:

• Balyasny Asset Management L.P. reported a new position of 3,946K shares, representing a 7.66% ownership.
• Nantahala Capital Management increased its holdings by 0.51% to 3,753K shares, holding approximately 7.29% ownership.
• Soleus Capital Management reduced its holdings, with current shares at 2,184K.
• BVF Inc. IL increased its position by 24.6%.

An increase of 23 owner(s) or 15.03% in the last quarter. Average portfolio weight of all funds dedicated to VSTM is 0.09%, an increase of 144.44%.

Impact of Institutional Investors

Institutional investors play a crucial role in Verastem, Inc. (VSTM)'s stock performance and overall strategy. Their actions can drive stock price volatility and influence market sentiment. For example:

As of April 17, 2025, the share price was $5.74. Previously, on April 18, 2024, the share price was $10.23, marking a 43.89% decrease over the year.

Institutional ownership can provide stability and confidence in the company's long-term prospects, especially when these investors maintain or increase their positions. Conversely, significant decreases in holdings by large institutions may signal concerns about the company's future performance.

The influence of institutional investors is also evident in the company's financials. As of September 30, 2024, Verastem, Inc. (VSTM) reported cash, cash equivalents, and investments totaling approximately $113.2 million. The company completed a public offering in July 2024, issuing 13,333,334 shares of common stock at $3.00 per share, resulting in net proceeds of approximately $50.8 million.

Jefferies initiated coverage of Verastem (NasdaqCM:VSTM) with a Buy recommendation. As of April 2, 2025, the average one-year price target for Verastem is $13.11/share. The forecasts range from a low of $9.09 to a high of $21.00. The average price target represents an increase of 148.38% from its latest reported closing price of $5.28 / share. The projected annual revenue for Verastem is 68MM, an increase of 580.98%. The projected annual non-GAAP EPS is -0.36.

For more insights into Verastem, Inc. (VSTM)'s background and ownership details, you can explore Verastem, Inc. (VSTM): History, Ownership, Mission, How It Works & Makes Money.

Verastem, Inc. (VSTM) Key Investors and Their Impact on Verastem, Inc. (VSTM)

Understanding the investor profile of Verastem, Inc. (VSTM) provides valuable insights into the company’s stability, growth potential, and market sentiment. Examining the key investors, their recent activities, and their influence can offer a clearer picture of the company's trajectory. Here’s a detailed look at who is investing in Verastem, Inc. (VSTM) and why.

Notable Investors:

Verastem, Inc. (VSTM) has a mix of institutional and individual investors. Major institutional shareholders include:

• Balyasny Asset Management LLC
• Nantahala Capital Management, LLC
• Orbimed Advisors Llc
• AIGH Capital Management LLC
• BlackRock, Inc.
• Vanguard Group Inc
• Soleus Capital Management, L.P.
• Bvf Inc/il
• Vivo Capital, LLC
• VTSMX - Vanguard Total Stock Market Index Fund Investor Shares

These institutions hold a significant portion of Verastem, Inc. (VSTM)’s shares, reflecting their confidence in the company's potential.

As of April 17, 2025, the share price was $5.74. On April 18, 2024, it was $10.23, marking a 43.89% decline over that period.

Investor Influence:

Institutional investors can exert considerable influence on a company through several avenues:

• Voting Rights: Large shareholders have substantial voting power, which allows them to influence corporate governance decisions, including the election of board members and approval of major transactions.
• Strategic Direction: Active investors may engage with the management team to provide input on strategic initiatives, operational improvements, and capital allocation.
• Market Sentiment: Institutional ownership can impact market perception. An increase in institutional holdings may signal confidence in the company, potentially attracting more investors and driving up the stock price.

Schedule 13D filings indicate investors holding more than 5% of the company's shares may seek to actively influence the business strategy. Schedule 13G filings, on the other hand, indicate a passive investment of over 5%.

Recent Moves:

Recent activities by major investors include:

• Debt Refinancing and Equity Investment: In January 2025, Verastem, Inc. (VSTM) announced a new credit facility for up to $150 million along with an equity investment of $7.5 million with Oberland Capital Management LLC.
• Strategic Commercialization Partnership: A strategic collaboration with IQVIA Inc. was announced to support the potential launch of avutometinib plus defactinib for recurrent KRAS mutant low-grade serous ovarian cancer (LGSOC).
• Public Offering: In July 2024, Verastem, Inc. (VSTM) completed a public offering, issuing 13,333,334 shares of common stock at $3.00 per share, resulting in net proceeds of approximately $50.8 million.

These moves suggest strategic efforts to bolster Verastem, Inc. (VSTM)’s financial position and prepare for potential FDA approval and commercialization of its drug candidates.

As of December 31, 2024, Verastem, Inc. (VSTM) had $88.8 million in cash, cash equivalents, and investments. Pro forma, this amounts to $151.3 million, including debt refinancing and equity issuance with Oberland, and equity issuance under the at-the-market facility.

Recent corporate updates include:

• The appointment of Matthew E. Ros as Chief Operating Officer on January 15, 2025.
• Exercising the option to license VS-7375 from GenFleet early on January 14, 2025.
• Agreements with Oberland Capital and IQVIA were announced on January 13, 2025.

These activities reflect a proactive approach to strengthening the company's leadership and pipeline.

For more detailed information on Verastem, Inc. (VSTM)'s background, mission, and operational structure, you can explore: Verastem, Inc. (VSTM): History, Ownership, Mission, How It Works & Makes Money

Additional Points:

• Institutional Ownership: As of April 2025, institutional ownership in Verastem, Inc. (VSTM) is approximately 65.66%.
• Total Value of Holdings: The total value of institutional holdings amounts to $194 million.
• Activist Investors: Barclays PLC, as of March 21, 2025, held 3,949,801 shares, representing 8.87% ownership.

Understanding the composition and activities of Verastem, Inc. (VSTM)’s investor base is crucial for assessing the company's prospects and potential risks. The mix of institutional and individual investors, along with recent strategic moves, provides a comprehensive view of the factors influencing Verastem, Inc. (VSTM)’s market position.

Verastem, Inc. (VSTM) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for evaluating Verastem, Inc. (VSTM). Recent shifts in major shareholders' positions and overall market dynamics provide valuable insights into the company's future trajectory. Analyst perspectives further contextualize these movements, offering a comprehensive view of Verastem, Inc. (VSTM)'s investment landscape.

Current investor sentiment surrounding Verastem, Inc. (VSTM) appears mixed, influenced by recent market activities and company-specific developments. Monitoring these sentiments can provide clues about potential future stock performance.

Recent market reactions to changes in ownership or large investor moves include:

• Stock Price Volatility: Significant changes in ownership often lead to increased stock price volatility, as the market interprets these moves as signals of confidence or concern.
• Trading Volume Fluctuations: Large investor transactions can cause spikes in trading volume, reflecting heightened market interest and speculative activity.
• Analyst Revisions: Changes in major shareholder positions may prompt analysts to revise their ratings and price targets, impacting investor perception.

Analyst perspectives on the impact of key investors on Verastem, Inc. (VSTM)'s future include:

• Strategic Alignment: Analysts assess how major investors' strategies align with the company's long-term goals, influencing their outlook on Verastem, Inc. (VSTM)'s prospects.
• Resource Commitment: The level of investment from key shareholders indicates their commitment to supporting Verastem, Inc. (VSTM)'s initiatives, affecting analyst confidence.
• Governance Influence: Analysts evaluate how key investors influence corporate governance and decision-making, which can impact the company's operational efficiency and strategic direction.

For more in-depth information about Verastem, Inc. (VSTM), you might find this resource helpful: Verastem, Inc. (VSTM): History, Ownership, Mission, How It Works & Makes Money