Vertex Pharmaceuticals (NASDAQ:VRTX) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Vertex from a "Buy" to a "Hold" in a research note issued Saturday.
• Despite the downgrade, analysts collectively maintain a consensus "Moderate Buy" rating with a consensus price target of $554.83, and several firms have raised targets (e.g., HC Wainwright $641, Morgan Stanley $612, Oppenheimer $600).
• Insiders have sold recently—about 80,431 shares worth ~$37.9M in the last three months—while the stock trades around $423.92 (1‑year high $509) with a market cap of ~$107.8B and a P/E of ~27.7.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

A number of other research analysts have also recently commented on VRTX. HC Wainwright upped their price target on Vertex Pharmaceuticals from $591.00 to $641.00 and gave the company a "buy" rating in a research report on Tuesday, March 10th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $577.00 price target on shares of Vertex Pharmaceuticals in a research report on Friday, February 13th. Morgan Stanley upped their price target on Vertex Pharmaceuticals from $596.00 to $612.00 and gave the company an "overweight" rating in a research report on Friday, April 10th. Jefferies Financial Group initiated coverage on Vertex Pharmaceuticals in a research report on Tuesday, March 10th. They set a "buy" rating and a $580.00 price target on the stock. Finally, Oppenheimer upped their price target on Vertex Pharmaceuticals from $540.00 to $600.00 and gave the company an "outperform" rating in a research report on Tuesday, March 10th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, Vertex Pharmaceuticals currently has a consensus rating of "Moderate Buy" and a consensus price target of $554.83.

Vertex Pharmaceuticals Trading Down 0.8%

VRTX stock opened at $423.92 on Friday. The stock's fifty day simple moving average is $453.82 and its two-hundred day simple moving average is $448.92. Vertex Pharmaceuticals has a 1-year low of $362.50 and a 1-year high of $509.00. The stock has a market cap of $107.83 billion, a P/E ratio of 27.65, a P/E/G ratio of 1.86 and a beta of 0.30.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last posted its quarterly earnings data on Thursday, February 12th. The pharmaceutical company reported $5.03 earnings per share for the quarter, missing the consensus estimate of $5.05 by ($0.02). Vertex Pharmaceuticals had a return on equity of 24.30% and a net margin of 32.94%.The business had revenue of $3.19 billion during the quarter, compared to analysts' expectations of $3.18 billion. During the same period in the prior year, the firm posted $3.98 EPS. The firm's revenue for the quarter was up 9.5% on a year-over-year basis. As a group, analysts forecast that Vertex Pharmaceuticals will post 16.82 earnings per share for the current fiscal year.

Insider Buying and Selling at Vertex Pharmaceuticals

In related news, EVP Duncan Mckechnie sold 4,910 shares of the stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $487.65, for a total transaction of $2,394,361.50. Following the sale, the executive vice president owned 17,559 shares of the company's stock, valued at approximately $8,562,646.35. This represents a 21.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Jonathan Biller sold 945 shares of the stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $486.35, for a total value of $459,600.75. Following the sale, the executive vice president directly owned 13,659 shares in the company, valued at $6,643,054.65. This trade represents a 6.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 80,431 shares of company stock worth $37,875,167 in the last three months. 0.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Vertex Pharmaceuticals

Institutional investors have recently added to or reduced their stakes in the stock. Motiv8 Investments LLC purchased a new stake in Vertex Pharmaceuticals during the 4th quarter worth about $26,000. Swiss RE Ltd. purchased a new stake in Vertex Pharmaceuticals during the 4th quarter worth about $28,000. Eagle Bay Advisors LLC purchased a new stake in Vertex Pharmaceuticals during the 4th quarter worth about $29,000. IMG Wealth Management Inc. lifted its holdings in Vertex Pharmaceuticals by 277.8% during the 4th quarter. IMG Wealth Management Inc. now owns 68 shares of the pharmaceutical company's stock worth $31,000 after purchasing an additional 50 shares in the last quarter. Finally, Colonial Trust Co SC lifted its holdings in Vertex Pharmaceuticals by 118.8% during the 3rd quarter. Colonial Trust Co SC now owns 70 shares of the pharmaceutical company's stock worth $27,000 after purchasing an additional 38 shares in the last quarter. Hedge funds and other institutional investors own 90.96% of the company's stock.

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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