VSTM Should I Buy
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Verastem Inc (VSTM) is not a strong buy for a beginner long-term investor at this time. While hedge funds are showing strong interest, and analysts maintain a Buy rating with significant upside potential, the technical indicators and financial performance suggest caution. The stock is currently in a bearish trend, with no immediate positive catalysts or proprietary trading signals to suggest a strong entry point. Additionally, the company’s financials show significant net losses, despite improved EPS. For a beginner investor with a long-term focus, it is better to wait for clearer signs of stability or growth before committing funds.
The stock is in a bearish trend with SMA_200 > SMA_20 > SMA_5. MACD is positive but contracting, and RSI is neutral at 34.775. Key support is at 5.916, and resistance is at 6.871. The stock is trading below its pivot point, indicating weakness.
Hedge funds are significantly increasing their positions in the stock, with a 1120.13% increase in buying activity last quarter. Analysts see potential in the KRAS franchise as a long-term value driver.
and development of a KRAS G12C combo therapy, which may have dampened investor sentiment. Financials show significant net losses and declining gross margins.
In Q3 2025, revenue remained flat YoY at $11.24M. Net income improved to -$98.52M (up 311.06% YoY), and EPS improved to -1.35 (up 125% YoY). However, gross margin dropped to 82.57%, down 17.43% YoY.
Analysts maintain a Buy rating with price targets of $14 and $18, suggesting significant upside potential. The KRAS franchise is seen as a key long-term growth driver.
