Value
7.2/10data confidence 33%| Component | Sub-score |
|---|---|
| P/S | 4.4 |
| Analyst target | 9.0 |
- ▸Attractively valued
VSTM · Why this verdict
Why Verastem (VSTM) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score5.5/10
ConfidenceMEDIUM
MacroNEUTRAL
Per-dimension breakdown
Quality
4.2/10data confidence 100%| Component | Sub-score |
|---|---|
| ROA | 0.0 |
| Gross margin | 10.0 |
| Net margin | 0.0 |
| Current ratio | 10.0 |
| FCF quality | 0.0 |
| Moat | 4.8 |
| Piotroski F | 4.4 |
- ▸Cash-burning: FCF -187% of revenue
- ▸No competitive moat
Growth
5.0/10data confidence 50%Momentum
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.1 |
| MACD | 9.7 |
| OBV | 10.0 |
| MA position | 6.0 |
| Volume | 6.3 |
- ▸Volume accumulation (rising OBV)
- ▸Below 200-MA, MA slope -9.7%/30d — confirmed downtrend
Sentiment
8.5/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 7.8 |
| Analyst rating | 7.9 |
| Price target | 10.0 |
- ▸LLM news sentiment: +0.55 (n=1)
- ▸Light analyst coverage (8.0) — signal dampened
- ▸Analyst upside: 195%
Insider
5.9/10data confidence 100%| Component | Sub-score |
|---|---|
| materiality | 4.5 |
| insider conviction | 2.0 |
| holder change | 10.0 |
| notable moves | 7.0 |
- ▸Modest insider selling — $109,021 (0.026% of mkt cap)
- ▸Institutions accumulating
Peer rank
3.0/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 5.5 |
| quality rank | 0.0 |
| growth rank | 5.0 |
Technical
1.6/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 0.0 |
| support resistance | 0.4 |
| 52w position | 0.0 |
| gap | 6.0 |
Risk (lower is worse)
2.8/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 1.0 |
| days to cover | 0.6 |
| volatility | 0.0 |
| put call | 0.0 |
| beta | 10.0 |
| debt equity | 4.9 |
- ▸High short interest justified: 25%
- ▸Elevated put/call: 20.60
Catalyst
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 10.0 |
| news activity | 5.0 |
- ▸Perfect beat streak: 4Q
How the verdict was assembled
Engine trigger
Extreme risk factors.
Engine technical detail
verdict_path:
L1:HARD_BLOCKPassed (8)
- MOMENTUM:7.0>=5.5
- ASYMMETRY:10.5>=1.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:29d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (0)
none
Warning (1)
- DEATH_CROSS:momentum=7.0>=5.0 recovering
Reward-to-Risk
10.46
Upside
+156.9%
Downside
15.0%
Sizing output
AVOID
SetupRecovery — Death cross but MACD improving, RSI 69
EdgeCatalyst-Driven — Earnings in 29d with 4/4 beat streak
SuitabilitySpeculative — Drawdown -55% (>40% off 52w high), Binary industry: Biotechnology
Investment implication
The L1 gate blocked the positive-verdict path: a hard-floor threshold was breached, so dimensional pillars — including Sentiment at 8.5 could not lift the engine output above the verdict floor.
The strongest dimensions are Sentiment at 8.5, Value at 7.2, and Momentum at 7.0; the weakest are Technical at 1.6, Risk (lower is worse) at 2.8, and Peer rank at 3.0. The V9 engine cleared all gates with 1 warning, producing an asymmetric reward-to-risk of 10.46 and an engine sizing output of AVOID.