Norges Bank Invests $1.44 Billion in Vertex Pharmaceuticals Incorporated $VRTX

Key Points

• Norges Bank made a major new investment in Vertex Pharmaceuticals, buying 3,176,613 shares in Q4 worth about $1.44 billion. The stake represents roughly 1.25% of the company.
• Vertex continues to draw strong institutional interest, with other large investors also adding or building positions, and institutions now owning 90.96% of the stock.
• The company reported solid quarterly results and upbeat analyst sentiment, beating EPS expectations with $4.47 per share and posting 8.3% revenue growth year over year. Analysts currently rate the stock a “Moderate Buy,” with a consensus price target of $555.91.

Norges Bank bought a new position in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 3,176,613 shares of the pharmaceutical company's stock, valued at approximately $1,440,149,000. Norges Bank owned about 1.25% of Vertex Pharmaceuticals as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also made changes to their positions in the company. Danske Bank A S bought a new stake in shares of Vertex Pharmaceuticals in the 3rd quarter worth about $64,417,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in shares of Vertex Pharmaceuticals by 3.8% in the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 544,978 shares of the pharmaceutical company's stock worth $213,435,000 after purchasing an additional 20,053 shares during the last quarter. Leuthold Group LLC bought a new stake in shares of Vertex Pharmaceuticals in the 3rd quarter worth about $5,030,000. Legacy Capital Group California Inc. bought a new stake in shares of Vertex Pharmaceuticals in the 3rd quarter worth about $956,000. Finally, ING Groep NV bought a new stake in shares of Vertex Pharmaceuticals in the 3rd quarter worth about $4,695,000. Institutional investors own 90.96% of the company's stock.

Insider Buying and Selling

In related news, EVP Joy Liu sold 1,104 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $425.02, for a total transaction of $469,222.08. Following the completion of the sale, the executive vice president directly owned 20,729 shares of the company's stock, valued at approximately $8,810,239.58. This represents a 5.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Carmen Bozic sold 6,988 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $450.00, for a total value of $3,144,600.00. Following the sale, the chief marketing officer directly owned 26,088 shares of the company's stock, valued at approximately $11,739,600. The trade was a 21.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 11,717 shares of company stock valued at $5,309,945. 0.20% of the stock is owned by corporate insiders.

Vertex Pharmaceuticals Price Performance

Shares of NASDAQ:VRTX opened at $447.54 on Friday. The company has a market capitalization of $113.59 billion, a price-to-earnings ratio of 26.54, a P/E/G ratio of 1.92 and a beta of 0.30. The firm's 50 day simple moving average is $439.06 and its 200 day simple moving average is $451.64. Vertex Pharmaceuticals Incorporated has a fifty-two week low of $362.50 and a fifty-two week high of $507.92.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last posted its earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.24 by $0.23. Vertex Pharmaceuticals had a return on equity of 23.86% and a net margin of 35.51%.The business had revenue of $2.99 billion during the quarter, compared to analysts' expectations of $2.99 billion. During the same period in the prior year, the business earned $4.06 EPS. Vertex Pharmaceuticals's revenue for the quarter was up 8.3% compared to the same quarter last year. Equities research analysts expect that Vertex Pharmaceuticals Incorporated will post 16.99 earnings per share for the current year.

Analyst Ratings Changes

A number of brokerages have commented on VRTX. Weiss Ratings raised shares of Vertex Pharmaceuticals from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, May 18th. Scotiabank increased their price objective on shares of Vertex Pharmaceuticals from $495.00 to $558.00 and gave the stock an "outperform" rating in a report on Friday, February 13th. Royal Bank Of Canada increased their price objective on shares of Vertex Pharmaceuticals from $541.00 to $543.00 and gave the stock an "outperform" rating in a report on Tuesday, May 5th. Maxim Group raised shares of Vertex Pharmaceuticals from a "hold" rating to a "buy" rating and set a $575.00 price objective on the stock in a report on Wednesday, March 18th. Finally, Canaccord Genuity Group decreased their price objective on shares of Vertex Pharmaceuticals from $437.00 to $436.00 and set a "hold" rating on the stock in a report on Tuesday, May 5th. Twenty-two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $555.91.

Vertex Pharmaceuticals Profile

Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.

Vertex's marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.

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