Verastem Inc (VSTM) Stock Analysis
Verdict: WATCH (do not buy)
Verastem's $205M cash gives an 18-month trial runway, but $137.5M annual burn and zero insider buys preserve steep dilution risks.
Investment score: 46/100
Analysis as of
Is Verastem Inc stock worth reviewing? The TradeMates thesis
The TradeMates model rates VSTM as a HOLD. Although technical momentum (+55.0% over 90 days) and Wall Street price targets ($14.43 average) reflect excitement around VS-6766 clinical trials, heavy cash burn ($137.51M in 2025) and zero insider buying present substantial dilution risk before potential 2027 commercialization.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 70/100 (weight 15%)
- Earnings Quality: 55/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Verastem Inc opportunities and risks
What speaks for VSTM
- Proprietary RAF/MEK Clamp Mechanism (VS-6766)
What speaks against VSTM
- Severe Cash Burn and Medium-Term Dilution Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| VSTM | n/a | 7.7x | n/a | 86.7% | -231.6% | -24.2% |
| PROK | n/a | 770.8x | n/a | -252.6% | -10599.8% | -25.3% |
| TECX | n/a | 0.0x | n/a | 0.0% | 0.0% | -13.6% |
| PRME | n/a | 141.2x | n/a | -1025.6% | -4613.1% | -27.3% |
| RGNX | n/a | 2.5x | n/a | 54.2% | -112.6% | -57.7% |
| Peer median | n/a | 71.9x | n/a | -126.3% | -2362.8% | -26.3% |
Frequently asked questions about Verastem Inc (VSTM)
Is VSTM stock a good investment?
The TradeMates model rates Verastem Inc as WATCH (do not buy) with an investment score of 46/100. The TradeMates model rates VSTM as a HOLD. Although technical momentum (+55.0% over 90 days) and Wall Street price targets ($14.43 average) reflect excitement around VS-6766 clinical trials, heavy cash burn ($137.51M in 2025) and zero insider buying present substantial dilution risk before potential 2027 commercialization. This is algorithmic model output, not personal investment advice.
Is VSTM stock a buy?
The TradeMates model verdict for VSTM is WATCH (do not buy) with an investment score of 46/100. Treat this as a model signal to review, not a personal buy recommendation.