Insider Buying: Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) Director Buys 5,000 Shares of Stock

Key Points

• Director Bruce I. Sachs of Vertex Pharmaceuticals purchased 5,000 shares at an average cost of $389.68 each, totaling approximately $1.95 million, increasing his ownership by 12.50% to 45,000 shares.
• The company's recent earnings report showed an EPS of $4.52, exceeding analysts' expectations of $4.24, alongside a revenue increase of 11.3% year-over-year to $2.94 billion.
• Wall Street analysts maintain a consensus rating of "Moderate Buy" for Vertex, with a price target averaging $497.10, reflecting optimism about the company's growth potential.

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Get Free Report) Director Bruce I. Sachs bought 5,000 shares of the stock in a transaction that occurred on Wednesday, August 6th. The stock was acquired at an average cost of $389.68 per share, for a total transaction of $1,948,400.00. Following the purchase, the director owned 45,000 shares of the company's stock, valued at $17,535,600. This trade represents a 12.50% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Vertex Pharmaceuticals Trading Down 2.6%

Vertex Pharmaceuticals stock traded down $10.02 during mid-day trading on Thursday, hitting $375.63. The stock had a trading volume of 3,980,060 shares, compared to its average volume of 1,626,332. The stock has a 50-day simple moving average of $453.73 and a two-hundred day simple moving average of $466.25. The company has a current ratio of 2.52, a quick ratio of 2.29 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $96.46 billion, a PE ratio of 26.85 and a beta of 0.44. Vertex Pharmaceuticals Incorporated has a 12 month low of $372.35 and a 12 month high of $519.88.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last released its earnings results on Monday, August 4th. The pharmaceutical company reported $4.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.24 by $0.28. Vertex Pharmaceuticals had a net margin of 31.86% and a return on equity of 23.91%. The company had revenue of $2.94 billion for the quarter, compared to the consensus estimate of $2.90 billion. During the same period in the prior year, the company posted ($12.83) EPS. The company's revenue was up 11.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Vertex Pharmaceuticals Incorporated will post 15.63 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Activest Wealth Management acquired a new stake in shares of Vertex Pharmaceuticals in the 1st quarter valued at approximately $25,000. Clal Insurance Enterprises Holdings Ltd increased its stake in Vertex Pharmaceuticals by 450.0% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 55 shares of the pharmaceutical company's stock valued at $27,000 after purchasing an additional 45 shares in the last quarter. Access Investment Management LLC acquired a new stake in Vertex Pharmaceuticals in the second quarter worth $27,000. Legacy Investment Solutions LLC bought a new position in shares of Vertex Pharmaceuticals during the second quarter worth $29,000. Finally, Mascagni Wealth Management Inc. acquired a new position in shares of Vertex Pharmaceuticals in the 4th quarter valued at $31,000. 90.96% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. BMO Capital Markets set a $530.00 price objective on Vertex Pharmaceuticals and gave the company an "outperform" rating in a research note on Tuesday. JPMorgan Chase & Co. increased their price objective on Vertex Pharmaceuticals from $515.00 to $517.00 and gave the stock an "overweight" rating in a research note on Monday, July 14th. The Goldman Sachs Group reissued a "buy" rating on shares of Vertex Pharmaceuticals in a report on Tuesday, May 6th. Leerink Partners reaffirmed a "market perform" rating and issued a $503.00 target price (down previously from $550.00) on shares of Vertex Pharmaceuticals in a report on Tuesday, May 6th. Finally, Stifel Nicolaus cut their price target on shares of Vertex Pharmaceuticals from $494.00 to $455.00 and set a "hold" rating for the company in a report on Tuesday. Thirteen equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $497.10.

Vertex Pharmaceuticals Company Profile

Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis (CF). It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age or older; SYMDEKO/SYMKEVI for people with CF for 6 years of age or older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 year or older who have CF with ivacaftor.

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