Vertex Pharmaceuticals (NASDAQ:VRTX) Posts Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• Vertex Pharmaceuticals reported quarterly EPS of $4.73, narrowly missing analysts’ $4.74 consensus estimate by $0.01. The company posted a 35.51% net margin and 23.86% return on equity.
• Shares fell 1.3% to $470.77 following the results. Despite mixed analyst views, Vertex has a consensus “Moderate Buy” rating and an average price target of $559.61.
• Insiders sold 17,452 shares worth approximately $8.1 million over the past three months, while institutional investors and hedge funds own 90.96% of the company.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) announced its quarterly earnings data on Monday. The pharmaceutical company reported $4.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.74 by ($0.01), FiscalAI reports. Vertex Pharmaceuticals had a return on equity of 23.86% and a net margin of 35.51%.

Vertex Pharmaceuticals Stock Down 1.3%

Shares of Vertex Pharmaceuticals stock traded down $6.33 during trading on Monday, reaching $470.77. The company's stock had a trading volume of 1,489,544 shares, compared to its average volume of 1,458,205. The business's 50-day moving average price is $470.62 and its 200-day moving average price is $460.33. Vertex Pharmaceuticals has a 52 week low of $362.50 and a 52 week high of $533.67. The firm has a market cap of $119.48 billion, a PE ratio of 27.92, a P/E/G ratio of 2.15 and a beta of 0.29.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. UBS Group boosted their target price on shares of Vertex Pharmaceuticals from $545.00 to $585.00 and gave the stock a "buy" rating in a report on Monday, July 13th. Morgan Stanley upped their target price on shares of Vertex Pharmaceuticals from $612.00 to $616.00 and gave the company an "overweight" rating in a report on Tuesday, May 5th. Wall Street Zen downgraded shares of Vertex Pharmaceuticals from a "buy" rating to a "hold" rating in a research note on Sunday, June 28th. Sanford C. Bernstein reduced their price target on Vertex Pharmaceuticals from $577.00 to $572.00 and set an "outperform" rating for the company in a report on Tuesday, May 5th. Finally, Weiss Ratings raised Vertex Pharmaceuticals from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 17th. Twenty-two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Vertex Pharmaceuticals currently has a consensus rating of "Moderate Buy" and an average target price of $559.61.

Insider Buying and Selling

In other news, EVP Ourania Tatsis sold 1,500 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $524.99, for a total transaction of $787,485.00. Following the transaction, the executive vice president directly 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Carmen Bozic sold 6,988 shares of Vertex Pharmaceuticals stock in a transaction that occurred 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 completion of the sale, the chief marketing officer owned 26,088 shares of the company's stock, valued at approximately $11,739,600. The trade was a 21.13% decrease in their ownership of the stock. 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. Over the last three months, insiders have sold 17,452 shares of company stock valued at $8,103,997. 0.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Vertex Pharmaceuticals

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Motiv8 Investments LLC acquired a new stake in shares of Vertex Pharmaceuticals during the 4th quarter worth $26,000. Swiss RE Ltd. acquired a new stake in Vertex Pharmaceuticals during the fourth quarter worth about $28,000. Kelleher Financial Advisors acquired a new stake in Vertex Pharmaceuticals during the third quarter worth about $39,000. Triumph Capital Management bought a new position in Vertex Pharmaceuticals in the 3rd quarter valued at about $43,000. Finally, Sfam LLC bought a new position in Vertex Pharmaceuticals in the 4th quarter valued at about $45,000. 90.96% of the stock is owned by institutional investors and hedge funds.

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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