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

Key Points

• Wall Street Zen downgraded Vertex Pharmaceuticals from “buy” to “hold,” adding to a mixed analyst backdrop even though the broader consensus remains positive.
• Despite the downgrade, Vertex still has a Moderate Buy average rating, with 22 Buy ratings and an average price target of $555.91, according to MarketBeat data.
• The company recently posted strong quarterly results, beating EPS expectations at $4.47 versus $4.24 and delivering 8.3% year-over-year revenue growth to $2.99 billion.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Sunday.

VRTX has been the subject of several other reports. Bank of America lifted their target price on shares of Vertex Pharmaceuticals from $571.00 to $598.00 and gave the stock a "buy" rating in a report on Tuesday, March 10th. Morgan Stanley raised their price target on shares of Vertex Pharmaceuticals from $612.00 to $616.00 and gave the company an "overweight" rating in a research report on Tuesday, May 5th. Barclays boosted their price objective on shares of Vertex Pharmaceuticals from $607.00 to $615.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Truist Financial initiated coverage on Vertex Pharmaceuticals in a research report on Wednesday, May 27th. They issued a "buy" rating and a $542.00 price objective on the stock. Finally, Royal Bank Of Canada increased their target price on Vertex Pharmaceuticals from $541.00 to $543.00 and gave the company an "outperform" rating in a research note on Tuesday, May 5th. Twenty-two analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $555.91.

Vertex Pharmaceuticals Price Performance

Shares of NASDAQ:VRTX opened at $491.34 on Friday. The business has a fifty day moving average price of $442.17 and a 200-day moving average price of $454.16. The company has a market capitalization of $124.70 billion, a PE ratio of 29.14, a PEG ratio of 2.10 and a beta of 0.30. Vertex Pharmaceuticals has a 1-year low of $362.50 and a 1-year high of $507.92.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last announced its quarterly earnings results on Monday, May 4th. The pharmaceutical company reported $4.47 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analysts' expectations of $2.99 billion. During the same quarter in the previous year, the business posted $4.06 EPS. Vertex Pharmaceuticals's revenue was up 8.3% compared to the same quarter last year. On average, sell-side analysts anticipate that Vertex Pharmaceuticals will post 17.02 earnings per share for the current fiscal year.

Insider Activity

In related news, EVP Joy Liu sold 1,104 shares of the 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 transaction, the executive vice president owned 20,729 shares in the company, valued at $8,810,239.58. This represents a 5.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sangeeta N. Bhatia sold 318 shares of Vertex Pharmaceuticals stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $423.73, for a total transaction of $134,746.14. Following the completion of the sale, the director directly owned 4,924 shares of the company's stock, valued at approximately $2,086,446.52. This trade represents a 6.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 16,215 shares of company stock valued at $7,272,420 over the last three months. Insiders own 0.20% of the company's stock.

Institutional Trading of Vertex Pharmaceuticals

Several large investors have recently modified their holdings of the company. Earned Wealth Advisors LLC boosted its position in Vertex Pharmaceuticals by 3.3% in the fourth quarter. Earned Wealth Advisors LLC now owns 650 shares of the pharmaceutical company's stock worth $295,000 after purchasing an additional 21 shares during the last quarter. Confluence Wealth Services Inc. increased its position in shares of Vertex Pharmaceuticals by 4.0% during the 4th quarter. Confluence Wealth Services Inc. now owns 545 shares of the pharmaceutical company's stock valued at $247,000 after purchasing an additional 21 shares during the last quarter. Williams Jones Wealth Management LLC. lifted its stake in shares of Vertex Pharmaceuticals by 1.9% in the 4th quarter. Williams Jones Wealth Management LLC. now owns 1,155 shares of the pharmaceutical company's stock worth $524,000 after purchasing an additional 21 shares during the period. Childress Capital Advisors LLC lifted its stake in shares of Vertex Pharmaceuticals by 3.1% in the 4th quarter. Childress Capital Advisors LLC now owns 730 shares of the pharmaceutical company's stock worth $331,000 after purchasing an additional 22 shares during the period. Finally, Cannell & Spears LLC boosted its holdings in shares of Vertex Pharmaceuticals by 1.2% in the first quarter. Cannell & Spears LLC now owns 1,983 shares of the pharmaceutical company's stock worth $885,000 after buying an additional 23 shares during the last quarter. Institutional investors own 90.96% of the company's stock.

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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