Simplify Asset Management Inc. Acquires 16,267 Shares of Vertex Pharmaceuticals Incorporated $VRTX

Key Points

• Simplify Asset Management increased its Vertex Pharmaceuticals stake by 1,327.9% in the fourth quarter, buying 16,267 additional shares to bring its total holdings to 17,492 shares worth about $7.93 million.
• Vertex reported better-than-expected earnings last quarter, posting $4.47 EPS versus the $4.24 consensus while revenue came in at $2.99 billion, up 8.3% from a year earlier.
• Analyst sentiment remains constructive, with several firms raising price targets and the stock carrying a Moderate Buy consensus and an average target price of $555.17.

Simplify Asset Management Inc. boosted its holdings in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Free Report) by 1,327.9% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 17,492 shares of the pharmaceutical company's stock after purchasing an additional 16,267 shares during the period. Vertex Pharmaceuticals comprises about 0.1% of Simplify Asset Management Inc.'s portfolio, making the stock its 26th largest holding. Simplify Asset Management Inc.'s holdings in Vertex Pharmaceuticals were worth $7,930,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in Vertex Pharmaceuticals by 1.0% in the third quarter. Vanguard Group Inc. now owns 24,216,865 shares of the pharmaceutical company's stock valued at $9,484,293,000 after purchasing an additional 243,088 shares in the last quarter. Capital Research Global Investors lifted its stake in Vertex Pharmaceuticals by 2.8% in the third quarter. Capital Research Global Investors now owns 16,553,281 shares of the pharmaceutical company's stock valued at $6,482,978,000 after acquiring an additional 444,990 shares during the last quarter. Capital International Investors lifted its stake in Vertex Pharmaceuticals by 77.9% in the third quarter. Capital International Investors now owns 4,689,059 shares of the pharmaceutical company's stock valued at $1,836,550,000 after acquiring an additional 2,053,156 shares during the last quarter. Alliancebernstein L.P. lifted its stake in Vertex Pharmaceuticals by 3.3% in the third quarter. Alliancebernstein L.P. now owns 4,522,586 shares of the pharmaceutical company's stock valued at $1,771,226,000 after acquiring an additional 144,266 shares during the last quarter. Finally, Ameriprise Financial Inc. lifted its stake in Vertex Pharmaceuticals by 4.4% in the third quarter. Ameriprise Financial Inc. now owns 2,276,927 shares of the pharmaceutical company's stock valued at $891,744,000 after acquiring an additional 95,565 shares during the last quarter. Institutional investors own 90.96% of the company's stock.

Vertex Pharmaceuticals Stock Performance

NASDAQ VRTX opened at $434.52 on Monday. The firm has a 50-day moving average of $441.55 and a 200-day moving average of $451.02. The stock has a market cap of $110.28 billion, a PE ratio of 25.77, a P/E/G ratio of 1.86 and a beta of 0.30. Vertex Pharmaceuticals Incorporated has a 52-week low of $362.50 and a 52-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. The company had revenue of $2.99 billion during the quarter, compared to analysts' expectations of $2.99 billion. Vertex Pharmaceuticals had a net margin of 35.51% and a return on equity of 23.86%. Vertex Pharmaceuticals's quarterly revenue was up 8.3% compared to the same quarter last year. During the same quarter last year, the company posted $4.06 EPS. As a group, analysts predict that Vertex Pharmaceuticals Incorporated will post 16.97 EPS for the current fiscal year.

Analyst Ratings Changes

VRTX has been the subject of a number of recent analyst reports. Citigroup increased their price target on shares of Vertex Pharmaceuticals from $575.00 to $585.00 and gave the company a "buy" rating in a research note on Tuesday, March 10th. Bank of America increased their price target on shares of Vertex Pharmaceuticals from $571.00 to $598.00 and gave the company a "buy" rating in a research note on Tuesday, March 10th. Jefferies Financial Group initiated coverage on shares of Vertex Pharmaceuticals in a research note on Tuesday, March 10th. They issued a "buy" rating and a $580.00 price target for the company. Weiss Ratings upgraded shares of Vertex Pharmaceuticals from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, May 18th. Finally, Sanford C. Bernstein cut their price target on shares of Vertex Pharmaceuticals from $577.00 to $572.00 and set an "outperform" rating for the company in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $555.17.

Insider Activity at Vertex Pharmaceuticals

In other news, EVP Joy Liu sold 1,104 shares of the firm's stock in a transaction dated Friday, May 1st. The shares were 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 owned 20,729 shares in the company, valued at approximately $8,810,239.58. This trade represents a 5.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sangeeta N. Bhatia sold 318 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $423.73, for a total transaction of $134,746.14. Following the sale, the director owned 4,924 shares of the company's stock, valued at approximately $2,086,446.52. This represents a 6.07% 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. Insiders have sold a total of 21,189 shares of company stock worth $9,923,036 in the last quarter. 0.20% of the stock is owned by corporate insiders.

About Vertex Pharmaceuticals

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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