Form 4: Verastem CEO Sells Shares for Tax Obligations

Verastem's President and CEO, Dan Paterson, sold 10,321 shares of common stock at $7.16 per share to cover tax withholdings from restricted stock unit vesting.

Summary

• Dan Paterson, President and CEO, and a Director of Verastem, Inc. (VSTM), reported a transaction.
• On January 12, 2026, Paterson sold 10,321 shares of Verastem Common Stock at a price of $7.16 per share.
• The sale was executed to satisfy statutory withholding requirements related to the vesting of restricted stock units.
• Following this transaction, Paterson directly beneficially owns 400,104 shares of Verastem Common Stock.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 6

Explanation: The transaction is a routine sale for tax purposes related to RSU vesting, which is a neutral to slightly positive event as it indicates RSU vesting. The pre-planned nature (10b5-1) also reduces negative sentiment. However, any insider sale, even for taxes, is a slight reduction in direct ownership.

Positives

• The sale was for tax obligations related to restricted stock unit (RSU) vesting, indicating a non-discretionary sale rather than a lack of confidence in the company.
• The transaction was pre-planned under a Rule 10b5-1(c) plan, which helps mitigate concerns about insider trading based on material non-public information.

Negatives

• A reduction in direct beneficial ownership by a key executive, even for tax purposes, slightly decreases their direct equity stake.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: A minor reduction in direct insider ownership, but for a non-discretionary reason (tax withholding) and executed under a pre-planned Rule 10b5-1 plan.
• Employees: No direct impact.
• Customers: No direct impact.
• Suppliers: No direct impact.
• Creditors: No direct impact.

Key Dates

Recommendation

This Form 4 reports a routine, non-discretionary sale of shares by the CEO to cover tax obligations upon the vesting of restricted stock units, executed under a Rule 10b5-1 plan. Such transactions are common and do not typically signal a change in management's outlook or confidence in the company. Therefore, this specific filing does not provide a basis for a 'buy' or 'sell' recommendation, suggesting a 'hold' position based solely on this information.

Keywords

Verastem, VSTM, Dan Paterson, Insider Trading, Form 4, Stock Sale, CEO, Restricted Stock Units, Tax Withholding, 10b5-1 Plan