Vertex Pharmaceuticals Incorporated $VRTX Shares Acquired by Geode Capital Management LLC

Key Points

• Geode Capital Management slightly increased its stake in Vertex Pharmaceuticals in the fourth quarter, adding 8,160 shares to bring its total to 5.98 million shares worth about $2.7 billion.
• Vertex reported strong quarterly results, with EPS of $4.47 beating expectations and revenue of $2.99 billion matching estimates, while revenue rose 8.3% year over year.
• Analysts remain broadly positive on the stock, with 22 Buy ratings and a consensus price target of $555.91, even as some insiders sold shares in recent months.

Geode Capital Management LLC lifted its holdings in shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Free Report) by 0.1% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm owned 5,981,905 shares of the pharmaceutical company's stock after buying an additional 8,160 shares during the period. Geode Capital Management LLC owned approximately 2.36% of Vertex Pharmaceuticals worth $2,700,208,000 at the end of the most recent quarter.

Several other hedge funds have also made changes to their positions in VRTX. Capital International Investors boosted its stake in shares of Vertex Pharmaceuticals by 77.9% during the third quarter. Capital International Investors now owns 4,689,059 shares of the pharmaceutical company's stock worth $1,836,550,000 after buying an additional 2,053,156 shares during the period. Capital Research Global Investors boosted its stake in shares of Vertex Pharmaceuticals by 2.8% during the third quarter. Capital Research Global Investors now owns 16,553,281 shares of the pharmaceutical company's stock worth $6,482,978,000 after buying an additional 444,990 shares during the period. Life Cycle Investment Partners Ltd acquired a new stake in shares of Vertex Pharmaceuticals during the fourth quarter worth about $166,317,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of Vertex Pharmaceuticals by 520.1% during the third quarter. Arrowstreet Capital Limited Partnership now owns 381,195 shares of the pharmaceutical company's stock worth $149,291,000 after buying an additional 319,725 shares during the period. Finally, Vanguard Group Inc. boosted its stake in shares of Vertex Pharmaceuticals by 1.0% during the third quarter. Vanguard Group Inc. now owns 24,216,865 shares of the pharmaceutical company's stock worth $9,484,293,000 after buying an additional 243,088 shares during the period. Institutional investors and hedge funds own 90.96% of the company's stock.

Vertex Pharmaceuticals Trading Up 0.3%

VRTX stock opened at $437.22 on Thursday. The firm has a 50 day moving average of $439.43 and a 200-day moving average of $451.39. 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 $110.97 billion, a price-to-earnings ratio of 25.93, a PEG ratio of 1.87 and a beta of 0.30.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last posted its quarterly earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 earnings per share (EPS) for the quarter, beating 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 company had revenue of $2.99 billion during the quarter, compared to the consensus estimate of $2.99 billion. During the same period last year, the firm earned $4.06 EPS. The company's revenue for the quarter was up 8.3% on a year-over-year basis. Sell-side analysts forecast that Vertex Pharmaceuticals Incorporated will post 16.97 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP Joy Liu sold 1,104 shares of Vertex Pharmaceuticals stock in a transaction that occurred on 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 directly 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 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 6,988 shares of Vertex Pharmaceuticals stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $450.00, for a total transaction of $3,144,600.00. Following the sale, the chief marketing officer 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 disclosure for this sale is available in the SEC filing. 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 worth $5,309,945. Company insiders own 0.20% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently commented on VRTX. Royal Bank Of Canada raised their price objective on shares of Vertex Pharmaceuticals from $541.00 to $543.00 and gave the company an "outperform" rating in a research report on Tuesday, May 5th. Weiss Ratings upgraded shares of Vertex Pharmaceuticals from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, May 18th. Jefferies Financial Group began coverage on shares of Vertex Pharmaceuticals in a research report on Tuesday, March 10th. They issued a "buy" rating and a $580.00 price objective for the company. Cantor Fitzgerald restated an "overweight" rating and issued a $590.00 price objective on shares of Vertex Pharmaceuticals in a research report on Friday, February 13th. Finally, Sanford C. Bernstein reduced their price objective on shares of Vertex Pharmaceuticals from $577.00 to $572.00 and set an "outperform" rating for the company in a research report on Tuesday, May 5th. Twenty-two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price 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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