Solas Capital Management LLC Takes Position in Vertex Pharmaceuticals Incorporated $VRTX

Key Points

• Solas Capital Management acquired 1.89 million Vertex shares worth approximately $20.3 million, making VRTX its largest holding at 10.9% of the portfolio and representing about 0.74% of Vertex’s outstanding shares.
• Vertex reported quarterly revenue of $3.33 billion, up 12.5% year over year, while EPS of $4.73 narrowly missed estimates. Institutional investors own 90.96% of the stock, while insiders sold $4.96 million worth of shares over the past 90 days.
• Wall Street remains broadly positive, with 21 analysts rating the stock Buy or Strong Buy and a consensus price target of $563.50. Vertex shares opened at $547.59, near their 12-month high of $555.32.

Solas Capital Management LLC acquired a new position in shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Free Report) in the second quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 1,889,366 shares of the pharmaceutical company's stock, valued at approximately $20,311,000. Vertex Pharmaceuticals comprises about 10.9% of Solas Capital Management LLC's holdings, making the stock its largest position. Solas Capital Management LLC owned approximately 0.74% of Vertex Pharmaceuticals as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Community Financial Services Group LLC acquired a new position in Vertex Pharmaceuticals in the second quarter valued at $26,000. Meeder Asset Management Inc. acquired a new stake in Vertex Pharmaceuticals during the second quarter worth about $26,000. Motiv8 Investments LLC acquired a new stake in Vertex Pharmaceuticals during the fourth quarter worth about $26,000. Elevation Wealth Partners LLC raised its holdings in shares of Vertex Pharmaceuticals by 103.7% in the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the pharmaceutical company's stock worth $27,000 after purchasing an additional 28 shares during the period. Finally, Swiss RE Ltd. purchased a new position in shares of Vertex Pharmaceuticals in the 4th quarter worth about $28,000. 90.96% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Vertex Pharmaceuticals news, CMO Carmen Bozic sold 4,062 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $450.00, for a total value of $1,827,900.00. Following the completion of the sale, the chief marketing officer owned 16,953 shares of the company's stock, valued at $7,628,850. This trade represents a 19.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ourania Tatsis sold 1,500 shares of Vertex Pharmaceuticals stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $524.99, for a total transaction of $787,485.00. Following the sale, the executive vice president owned 45,321 shares in the company, valued at $23,793,071.79. This represents a 3.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 10,464 shares of company stock worth $4,959,397 in the last 90 days. 0.20% of the stock is owned by company insiders.

Vertex Pharmaceuticals Price Performance

Shares of VRTX opened at $547.59 on Tuesday. Vertex Pharmaceuticals Incorporated has a 12 month low of $374.17 and a 12 month high of $555.32. The stock's 50-day moving average is $494.60 and its two-hundred day moving average is $466.46. The stock has a market cap of $138.98 billion, a PE ratio of 31.87, a P/E/G ratio of 2.27 and a beta of 0.30.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last posted its earnings results on Monday, August 3rd. The pharmaceutical company reported $4.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.74 by ($0.01). The company had revenue of $3.33 billion during the quarter, compared to analyst estimates of $3.23 billion. Vertex Pharmaceuticals had a net margin of 35.00% and a return on equity of 23.09%. Vertex Pharmaceuticals's quarterly revenue was up 12.5% compared to the same quarter last year. During the same quarter last year, the business posted $4.52 EPS. On average, research analysts anticipate that Vertex Pharmaceuticals Incorporated will post 16.86 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on VRTX shares. Sanford C. Bernstein raised Vertex Pharmaceuticals to a "strong-buy" rating in a research note on Wednesday, July 29th. TD Cowen increased their target price on shares of Vertex Pharmaceuticals from $525.00 to $550.00 and gave the stock a "buy" rating in a research report on Tuesday, August 4th. Barclays raised their price target on shares of Vertex Pharmaceuticals from $615.00 to $617.00 and gave the company an "overweight" rating in a report on Wednesday, August 5th. Cantor Fitzgerald lifted their price target on shares of Vertex Pharmaceuticals from $590.00 to $595.00 and gave the company an "overweight" rating in a research report on Tuesday, August 4th. Finally, UBS Group boosted their price objective on shares of Vertex Pharmaceuticals from $545.00 to $585.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $563.50.

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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