Vertex Pharmaceuticals Incorporated $VRTX is Capital World Investors' 10th Largest Position

Key Points

• Capital World Investors cut its Vertex Pharmaceuticals stake by 1.5% in the fourth quarter, but Vertex remains its 10th largest position. The fund still owns about 25.5 million shares, worth roughly $11.6 billion.
• Vertex reported better-than-expected quarterly earnings, with EPS of $4.47 versus analyst expectations of $4.24, while revenue rose 8.3% year over year to $2.99 billion. The company also maintained strong profitability, including a net margin of 35.51%.
• Analysts remain mostly bullish on the stock, with 22 Buy ratings and three Hold ratings, resulting in a consensus Moderate Buy and a price target of $555.91. The shares were trading up 1.2% at $446.83 in Friday’s session.

Capital World Investors trimmed its holdings in shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Free Report) by 1.5% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 25,510,182 shares of the pharmaceutical company's stock after selling 400,405 shares during the period. Vertex Pharmaceuticals makes up approximately 1.6% of Capital World Investors' holdings, making the stock its 10th largest position. Capital World Investors owned approximately 10.05% of Vertex Pharmaceuticals worth $11,565,309,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in VRTX. Colonial Trust Co SC lifted its holdings in shares of Vertex Pharmaceuticals by 118.8% during the third quarter. Colonial Trust Co SC now owns 70 shares of the pharmaceutical company's stock valued at $27,000 after purchasing an additional 38 shares during the last quarter. Eagle Bay Advisors LLC purchased a new position in shares of Vertex Pharmaceuticals during the fourth quarter valued at approximately $29,000. IMG Wealth Management Inc. lifted its holdings in shares of Vertex Pharmaceuticals by 277.8% during the fourth quarter. IMG Wealth Management Inc. now owns 68 shares of the pharmaceutical company's stock valued at $31,000 after purchasing an additional 50 shares during the last quarter. Ares Financial Consulting LLC purchased a new position in shares of Vertex Pharmaceuticals during the fourth quarter valued at approximately $33,000. Finally, Archer Investment Corp lifted its holdings in shares of Vertex Pharmaceuticals by 89.7% during the fourth quarter. Archer Investment Corp now owns 74 shares of the pharmaceutical company's stock valued at $34,000 after purchasing an additional 35 shares during the last quarter. 90.96% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Vertex Pharmaceuticals news, Director Sangeeta N. Bhatia sold 318 shares of Vertex Pharmaceuticals stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $423.73, for a total value of $134,746.14. Following the completion of the sale, the director owned 4,924 shares of the company's stock, valued at approximately $2,086,446.52. The trade was a 6.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Carmen Bozic sold 6,988 shares of Vertex Pharmaceuticals stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $450.00, for a total transaction of $3,144,600.00. Following the completion of the sale, the chief marketing officer directly owned 26,088 shares of the company's stock, valued at approximately $11,739,600. This trade represents a 21.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 11,717 shares of company stock valued at $5,309,945. Company insiders own 0.20% of the company's stock.

Vertex Pharmaceuticals Trading Up 1.2%

NASDAQ:VRTX opened at $446.83 on Friday. Vertex Pharmaceuticals Incorporated has a 12 month low of $362.50 and a 12 month high of $507.92. The company has a market cap of $113.41 billion, a PE ratio of 26.50, a price-to-earnings-growth ratio of 1.91 and a beta of 0.30. The company has a 50 day simple moving average of $437.33 and a two-hundred day simple moving average of $451.81.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last posted its earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 EPS for the quarter, topping analysts' consensus estimates of $4.24 by $0.23. Vertex Pharmaceuticals had a net margin of 35.51% and a return on equity of 23.86%. The business had revenue of $2.99 billion during the quarter, compared to the consensus estimate of $2.99 billion. During the same quarter in the previous year, the firm posted $4.06 EPS. The firm's revenue was up 8.3% on a year-over-year basis. Research analysts forecast that Vertex Pharmaceuticals Incorporated will post 17.02 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Sanford C. Bernstein decreased their price objective on shares of Vertex Pharmaceuticals from $577.00 to $572.00 and set an "outperform" rating for the company in a report on Tuesday, May 5th. Royal Bank Of Canada boosted 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. Jefferies Financial Group assumed coverage on shares of Vertex Pharmaceuticals in a report on Tuesday, March 10th. They issued a "buy" rating and a $580.00 price objective for the company. Canaccord Genuity Group decreased their price objective on shares of Vertex Pharmaceuticals from $437.00 to $436.00 and set a "hold" rating for the company in a report on Tuesday, May 5th. Finally, Truist Financial assumed coverage on shares of Vertex Pharmaceuticals in a report on Wednesday, May 27th. They issued a "buy" rating and a $542.00 price objective for the company. Twenty-two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Vertex Pharmaceuticals currently 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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