Vertex Pharmaceuticals (NASDAQ:VRTX) Sets New 52-Week Low - Should You Sell?

Key Points

• Vertex Pharmaceuticals shares reached a new 52-week low, trading as low as $362.50 before closing at $374.46 amidst a trading volume of over 2.79 million shares.
• Despite the recent stock decline, analysts maintain a Moderate Buy rating on Vertex Pharmaceuticals, with an average target price of $497.10, reflecting confidence in future growth.
• Insider activity includes Director Bruce I. Sachs purchasing 5,000 shares at approximately $389.68 per share, indicating insider confidence in the company’s potential.

Shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $362.50 and last traded at $374.46, with a volume of 2792620 shares. The stock had previously closed at $366.54.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on VRTX shares. BMO Capital Markets set a $530.00 price target on shares of Vertex Pharmaceuticals and gave the stock an "outperform" rating in a research note on Tuesday, August 5th. Needham & Company LLC reiterated a "hold" rating on shares of Vertex Pharmaceuticals in a research note on Tuesday, May 6th. Scotiabank decreased their price target on shares of Vertex Pharmaceuticals from $442.00 to $438.00 and set a "sector perform" rating on the stock in a research note on Tuesday, August 5th. Royal Bank Of Canada decreased their price target on shares of Vertex Pharmaceuticals from $430.00 to $405.00 and set a "sector perform" rating on the stock in a research note on Tuesday, August 5th. Finally, UBS Group set a $553.00 target price on shares of Vertex Pharmaceuticals and gave the company a "buy" rating in a research note on Tuesday, August 5th. Thirteen research analysts have rated the stock with a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $497.10.

Vertex Pharmaceuticals Price Performance

The stock has a 50-day moving average of $447.18 and a 200 day moving average of $464.48. The company has a market cap of $101.51 billion, a P/E ratio of 28.30 and a beta of 0.44.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last released its earnings results on Monday, August 4th. The pharmaceutical company reported $4.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.24 by $0.28. Vertex Pharmaceuticals had a return on equity of 23.91% and a net margin of 31.86%. The firm had revenue of $2.94 billion for the quarter, compared to analysts' expectations of $2.90 billion. During the same quarter in the previous year, the business posted ($12.83) earnings per share. The business's revenue for the quarter was up 11.3% on a year-over-year basis. Sell-side analysts predict that Vertex Pharmaceuticals Incorporated will post 15.63 EPS for the current year.

Insider Transactions at Vertex Pharmaceuticals

In other Vertex Pharmaceuticals news, Director Bruce I. Sachs bought 5,000 shares of the firm's stock in a transaction on Wednesday, August 6th. The shares were purchased at an average price of $389.68 per share, for a total transaction of $1,948,400.00. Following the completion of the transaction, the director directly owned 45,000 shares in the company, valued at approximately $17,535,600. The trade was a 12.50% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. 0.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Vertex Pharmaceuticals

Hedge funds and other institutional investors have recently made changes to their positions in the company. Quent Capital LLC grew its stake in Vertex Pharmaceuticals by 4.5% in the first quarter. Quent Capital LLC now owns 513 shares of the pharmaceutical company's stock worth $249,000 after purchasing an additional 22 shares in the last quarter. Advisor OS LLC grew its stake in Vertex Pharmaceuticals by 4.4% in the first quarter. Advisor OS LLC now owns 543 shares of the pharmaceutical company's stock worth $263,000 after purchasing an additional 23 shares in the last quarter. Costello Asset Management INC grew its stake in Vertex Pharmaceuticals by 3.6% in the second quarter. Costello Asset Management INC now owns 689 shares of the pharmaceutical company's stock worth $307,000 after purchasing an additional 24 shares in the last quarter. Kovack Advisors Inc. grew its stake in Vertex Pharmaceuticals by 1.9% in the second quarter. Kovack Advisors Inc. now owns 1,280 shares of the pharmaceutical company's stock worth $570,000 after purchasing an additional 24 shares in the last quarter. Finally, Sculati Wealth Management LLC grew its stake in Vertex Pharmaceuticals by 1.0% in the fourth quarter. Sculati Wealth Management LLC now owns 2,556 shares of the pharmaceutical company's stock worth $1,029,000 after purchasing an additional 25 shares in the last quarter. 90.96% of the stock is currently owned by institutional investors.

Vertex Pharmaceuticals Company Profile

Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis (CF). It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age or older; SYMDEKO/SYMKEVI for people with CF for 6 years of age or older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 year or older who have CF with ivacaftor.