Vertex Pharmaceuticals (NASDAQ:VRTX) Coverage Initiated at Leerink Partners

Key Points

• Leerink Partners initiated coverage of Vertex Pharmaceuticals with an “outperform” rating and a $594 price target, implying approximately 17% upside from the prior close.
• Vertex reported quarterly revenue of $3.33 billion, up 12.5% year over year and above estimates, though adjusted EPS of $4.73 narrowly missed the $4.74 consensus.
• The stock fell 0.3% to $506.93, while analyst sentiment remained favorable: Vertex has a consensus “Moderate Buy” rating and an average price target of $573.83.

Equities research analysts at Leerink Partners assumed coverage on shares of Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) in a research note issued to investors on Monday, MarketBeat Ratings reports. The firm set an "outperform" rating and a $594.00 price target on the pharmaceutical company's stock. Leerink Partners' price objective points to a potential upside of 17.18% from the company's previous close.

Several other analysts also recently commented on the company. Barclays increased their target price on Vertex Pharmaceuticals from $615.00 to $617.00 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. JPMorgan Chase & Co. reaffirmed an "overweight" rating and set a $560.00 price objective (up from $515.00) on shares of Vertex Pharmaceuticals in a research report on Friday, September 11th. Wall Street Zen lowered Vertex Pharmaceuticals from a "buy" rating to a "hold" rating in a research report on Sunday, June 28th. Royal Bank Of Canada boosted their target price on Vertex Pharmaceuticals from $543.00 to $570.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 7th. Finally, Sanford C. Bernstein upgraded shares of Vertex Pharmaceuticals to a "strong-buy" rating in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $573.83.

Vertex Pharmaceuticals Stock Down 0.3%

Vertex Pharmaceuticals stock traded down $1.41 during trading hours on Monday, hitting $506.93. The stock had a trading volume of 83,080 shares, compared to its average volume of 1,393,085. The stock has a market capitalization of $128.66 billion, a P/E ratio of 29.51, a price-to-earnings-growth ratio of 2.23 and a beta of 0.32. Vertex Pharmaceuticals has a 12-month low of $374.17 and a 12-month high of $560.25. The stock's 50-day moving average price is $511.81 and its 200-day moving average price is $474.07.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The pharmaceutical company reported $4.73 EPS for the quarter, missing analysts' consensus estimates of $4.74 by ($0.01). The firm had revenue of $3.33 billion for the quarter, compared to analysts' expectations of $3.23 billion. Vertex Pharmaceuticals had a net margin of 35.00% and a return on equity of 23.09%. The company's quarterly revenue was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $4.52 EPS. On average, research analysts expect that Vertex Pharmaceuticals will post 16.69 EPS for the current fiscal year.

Insider Transactions at Vertex Pharmaceuticals

In related news, EVP Ourania Tatsis sold 1,500 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $524.99, for a total transaction of $787,485.00. Following the completion of the sale, the executive vice president directly owned 45,321 shares of the company's stock, valued at approximately $23,793,071.79. This trade represents a 3.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Carmen Bozic sold 596 shares of the business's stock in a transaction on Friday, June 26th. The shares were sold at an average price of $482.50, for a total value of $287,570.00. Following the transaction, the chief marketing officer owned 15,337 shares of the company's stock, valued at approximately $7,400,102.50. The trade was a 3.74% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 3,637 shares of company stock worth $1,874,834. 0.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Vertex Pharmaceuticals in the second quarter valued at approximately $11,975,849,000. Norges Bank bought a new stake in Vertex Pharmaceuticals during the 4th quarter valued at $1,440,149,000. Bank of America Corp DE purchased a new stake in shares of Vertex Pharmaceuticals in the 2nd quarter worth $1,509,651,000. Legal & General Group Plc purchased a new stake in shares of Vertex Pharmaceuticals in the 2nd quarter worth $928,893,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Vertex Pharmaceuticals during the 2nd quarter worth $830,842,000. Hedge funds and other institutional investors own 90.96% of the company's stock.

Vertex Pharmaceuticals Company Profile

Vertex Pharmaceuticals Incorporated is a global biotechnology company focused on developing and commercializing medicines for serious diseases. Founded in 1989 and headquartered in Boston, Massachusetts, the company combines research in human genetics with drug discovery and development.

Vertex is best known for its cystic fibrosis portfolio, which includes CFTR modulator therapies such as Kalydeco, Orkambi, Symdeko and the combination marketed as Trikafta in the United States and Kaftrio in other markets.

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