Vertex Pharmaceuticals (NASDAQ:VRTX) Hits New 52-Week High - Should You Buy?

Key Points

• Vertex Pharmaceuticals hit a new 52-week high, trading as high as $557.50 and last changing hands near $555.09. The stock has a market capitalization of approximately $139.7 billion and trades at a P/E ratio of 32.02.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $569.52. Recent targets range from $500 to $665, including upgraded targets from UBS and Cantor Fitzgerald.
• Vertex reported $3.33 billion in quarterly revenue, up 12.5% year over year and above expectations, although EPS of $4.73 narrowly missed estimates. Insiders sold shares under pre-arranged trading plans, while institutional investors hold 90.96% of the stock.

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Get Free Report) hit a new 52-week high on Wednesday . The company traded as high as $557.50 and last traded at $555.0930, with a volume of 54066 shares traded. The stock had previously closed at $547.65.

Wall Street Analyst Weigh In

VRTX has been the subject of several recent analyst reports. UBS Group boosted their price target on Vertex Pharmaceuticals from $545.00 to $585.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Morgan Stanley assumed coverage on shares of Vertex Pharmaceuticals in a report on Tuesday. They set an "overweight" rating and a $665.00 price target on the stock. Cantor Fitzgerald boosted their price objective on shares of Vertex Pharmaceuticals from $590.00 to $595.00 and gave the company an "overweight" rating in a report on Tuesday, August 4th. Stifel Nicolaus set a $500.00 price objective on shares of Vertex Pharmaceuticals in a research report on Tuesday, August 4th. Finally, Weiss Ratings downgraded shares of Vertex Pharmaceuticals from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, August 25th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $569.52.

Vertex Pharmaceuticals Price Performance

The company's 50-day simple moving average is $505.22 and its two-hundred day simple moving average is $469.83. The firm has a market capitalization of $139.73 billion, a P/E ratio of 32.02, a P/E/G ratio of 2.36 and a beta of 0.32.

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

Insider Activity

In other news, EVP Duncan Mckechnie sold 1,541 shares of the stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $519.00, for a total value of $799,779.00. Following the completion of the sale, the executive vice president directly owned 11,001 shares of the company's stock, valued at $5,709,519. This represents a 12.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Carmen Bozic sold 4,062 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $450.00, for a total transaction of $1,827,900.00. Following the sale, the chief marketing officer owned 16,953 shares in the company, valued at $7,628,850. The trade was a 19.33% 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. Insiders have sold a total of 10,464 shares of company stock valued at $4,959,397 in the last ninety days. Corporate insiders own 0.20% of the company's stock.

Hedge Funds Weigh In On Vertex Pharmaceuticals

Several large investors have recently made changes to their positions in the business. Brighton Jones LLC boosted its position in shares of Vertex Pharmaceuticals by 15.0% during the fourth quarter. Brighton Jones LLC now owns 4,427 shares of the pharmaceutical company's stock worth $1,783,000 after acquiring an additional 579 shares during the last quarter. Gamco Investors INC. ET AL bought a new stake in Vertex Pharmaceuticals in the 2nd quarter valued at $228,000. NewEdge Advisors LLC increased its holdings in Vertex Pharmaceuticals by 9.0% in the 2nd quarter. NewEdge Advisors LLC now owns 11,929 shares of the pharmaceutical company's stock valued at $5,311,000 after acquiring an additional 986 shares during the last quarter. ICW Investment Advisors LLC lifted its stake in Vertex Pharmaceuticals by 5.0% in the 2nd quarter. ICW Investment Advisors LLC now owns 604 shares of the pharmaceutical company's stock worth $269,000 after purchasing an additional 29 shares in the last quarter. Finally, Diversify Advisory Services LLC boosted its holdings in shares of Vertex Pharmaceuticals by 26.3% during the 2nd quarter. Diversify Advisory Services LLC now owns 7,291 shares of the pharmaceutical company's stock valued at $3,246,000 after purchasing an additional 1,518 shares during the last quarter. 90.96% of the stock is currently owned by hedge funds and other institutional investors.

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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