Vertex Pharmaceuticals (NASDAQ:VRTX) Hits New 52-Week High - Still a Buy?

Key Points

• Vertex shares reached a new 52-week high of $546.17 and were last trading near $525.67, up 7.0%; the company’s market capitalization stands at approximately $134.7 billion.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $563.50. Recent targets range from $550 at TD Cowen to $616 at Morgan Stanley.
• Quarterly revenue rose 12.5% year over year to $3.33 billion, exceeding estimates, although EPS of $4.73 narrowly missed expectations. Insiders sold 17,452 shares worth about $8.1 million during the quarter, while institutional investors own 90.96% of the stock.

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Get Free Report)'s stock price hit a new 52-week high on Monday . The company traded as high as $546.17 and last traded at $525.6690, with a volume of 654559 shares. The stock had previously closed at $496.07.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on VRTX shares. Wall Street Zen lowered Vertex Pharmaceuticals from a "buy" rating to a "hold" rating in a research note on Sunday, June 28th. Sanford C. Bernstein raised Vertex Pharmaceuticals to a "strong-buy" rating in a report on Wednesday, July 29th. TD Cowen increased their price target on Vertex Pharmaceuticals from $525.00 to $550.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. UBS Group upped their price objective on shares of Vertex Pharmaceuticals from $545.00 to $585.00 and gave the company a "buy" rating in a research note on Monday, July 13th. Finally, Morgan Stanley raised their target price on shares of Vertex Pharmaceuticals from $612.00 to $616.00 and gave the stock an "overweight" rating in a report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $563.50.

Vertex Pharmaceuticals Stock Up 7.0%

The stock's 50-day moving average is $474.84 and its 200 day moving average is $461.66. The stock has a market capitalization of $134.73 billion, a PE ratio of 30.87, a P/E/G ratio of 2.05 and a beta of 0.30.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last released 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). 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 in the previous year, the company earned $4.52 EPS. The firm's quarterly revenue was up 12.5% compared to the same quarter last year. As a group, equities research analysts forecast that Vertex Pharmaceuticals Incorporated will post 16.86 EPS for the current year.

Insider Buying and Selling

In other Vertex Pharmaceuticals news, CMO Carmen Bozic sold 6,988 shares of the stock in a transaction 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 transaction, the chief marketing officer directly owned 26,088 shares of the company's stock, valued at $11,739,600. This represents a 21.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, 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 the company's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $524.99, for a total value of $787,485.00. Following the sale, the executive vice president owned 45,321 shares of the company's stock, valued at approximately $23,793,071.79. This trade represents a 3.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 17,452 shares of company stock worth $8,103,997. Insiders own 0.20% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. BOK Financial Private Wealth Inc. bought a new stake in Vertex Pharmaceuticals during the second quarter worth approximately $471,000. Danica Pension Livsforsikringsaktieselskab acquired a new stake in shares of Vertex Pharmaceuticals in the second quarter worth $13,823,000. Danske Bank A S acquired a new stake in shares of Vertex Pharmaceuticals in the second quarter worth $78,515,000. Gables Capital Management Inc. bought a new stake in shares of Vertex Pharmaceuticals during the 2nd quarter worth $60,000. Finally, Wealthfront Advisers LLC bought a new stake in shares of Vertex Pharmaceuticals during the 2nd quarter worth $20,668,000. 90.96% of the stock is owned by institutional investors.

Vertex Pharmaceuticals Company 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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