Vertex Pharmaceuticals (NASDAQ:VRTX) Shares Gap Down on Analyst Downgrade

Key Points

• Vertex Pharmaceuticals shares experienced a significant drop after UBS Group downgraded its price target from $582.00 to $553.00, leading to a trading opening at $408.22, down from the previous close of $472.27.
• Other brokerages have also adjusted their ratings and price targets for the stock, with Leerink Partners lowering their target to $503.00, while JPMorgan Chase raised theirs to $517.00.
• Vertex recently reported quarterly earnings of $4.52 per share, beating estimates and marking an 11.3% increase in revenue compared to the same quarter last year, despite a negative return on equity.

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Get Free Report)'s share price gapped down before the market opened on Tuesday after UBS Group lowered their price target on the stock from $582.00 to $553.00. The stock had previously closed at $472.27, but opened at $408.22. UBS Group currently has a buy rating on the stock. Vertex Pharmaceuticals shares last traded at $399.02, with a volume of 1,466,250 shares changing hands.

Several other brokerages also recently weighed in on VRTX. Leerink Partners reaffirmed a "market perform" rating and set a $503.00 target price (down previously from $550.00) on shares of Vertex Pharmaceuticals in a research note on Tuesday, May 6th. William Blair reaffirmed an "outperform" rating on shares of Vertex Pharmaceuticals in a research note on Tuesday, May 6th. Needham & Company LLC reaffirmed a "hold" rating on shares of Vertex Pharmaceuticals in a research note on Tuesday, May 6th. JPMorgan Chase & Co. boosted their price objective on Vertex Pharmaceuticals from $515.00 to $517.00 and gave the stock an "overweight" rating in a research note on Monday, July 14th. Finally, Cantor Fitzgerald dropped their price objective on Vertex Pharmaceuticals from $535.00 to $485.00 and set an "overweight" rating on the stock in a research note on Tuesday. Fourteen research analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $497.79.

Institutional Investors Weigh In On Vertex Pharmaceuticals

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Harel Insurance Investments & Financial Services Ltd. raised its position in shares of Vertex Pharmaceuticals by 65.8% during the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,270 shares of the pharmaceutical company's stock worth $565,000 after purchasing an additional 504 shares during the period. Welch & Forbes LLC grew its holdings in shares of Vertex Pharmaceuticals by 4.6% during the second quarter. Welch & Forbes LLC now owns 217,244 shares of the pharmaceutical company's stock valued at $96,717,000 after buying an additional 9,605 shares in the last quarter. Syverson Strege & Co purchased a new position in shares of Vertex Pharmaceuticals during the second quarter valued at $283,000. Leeward Financial Partners LLC grew its holdings in shares of Vertex Pharmaceuticals by 8.8% during the second quarter. Leeward Financial Partners LLC now owns 716 shares of the pharmaceutical company's stock valued at $319,000 after buying an additional 58 shares in the last quarter. Finally, Lockheed Martin Investment Management Co. grew its holdings in shares of Vertex Pharmaceuticals by 34.1% during the second quarter. Lockheed Martin Investment Management Co. now owns 10,860 shares of the pharmaceutical company's stock valued at $4,835,000 after buying an additional 2,760 shares in the last quarter. 90.96% of the stock is owned by institutional investors and hedge funds.

Vertex Pharmaceuticals Stock Down 16.8%

The company has a debt-to-equity ratio of 0.01, a current ratio of 2.65 and a quick ratio of 2.29. The firm has a market cap of $100.85 billion, a PE ratio of -100.49 and a beta of 0.44. The business has a fifty day moving average price of $456.34 and a two-hundred day moving average price of $467.46.

Vertex Pharmaceuticals (NASDAQ:VRTX - Get Free Report) last issued its quarterly earnings results on Monday, August 4th. The pharmaceutical company reported $4.52 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.28. Vertex Pharmaceuticals had a negative return on equity of 3.36% and a negative net margin of 8.91%. The business had revenue of $2.94 billion for the quarter, compared to the consensus estimate of $2.90 billion. During the same quarter in the previous year, the company posted ($12.83) earnings per share. Vertex Pharmaceuticals's revenue for the quarter was up 11.3% compared to the same quarter last year. On average, analysts anticipate that Vertex Pharmaceuticals Incorporated will post 15.63 EPS for the current fiscal year.

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.

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