Vertex Pharmaceuticals (NASDAQ:VRTX) Shares Gap Down on Disappointing Earnings

Shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX - Get Free Report) gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $500.19, but opened at $465.56. Vertex Pharmaceuticals shares last traded at $434.12, with a volume of 1,496,404 shares.

The pharmaceutical company reported $4.06 earnings per share for the quarter, missing the consensus estimate of $4.29 by ($0.23). Vertex Pharmaceuticals had a negative net margin of 4.86% and a negative return on equity of 2.02%. The business had revenue of $2.77 billion for the quarter, compared to analyst estimates of $2.85 billion. During the same quarter last year, the firm posted $4.76 earnings per share. Vertex Pharmaceuticals's revenue was up 2.6% on a year-over-year basis.

Wall Street Analyst Weigh In

VRTX has been the subject of several research analyst reports. Morgan Stanley upped their price target on shares of Vertex Pharmaceuticals from $462.00 to $464.00 and gave the company an "equal weight" rating in a report on Tuesday. Cantor Fitzgerald reiterated an "overweight" rating and set a $535.00 price objective on shares of Vertex Pharmaceuticals in a report on Tuesday. William Blair restated an "outperform" rating on shares of Vertex Pharmaceuticals in a research note on Tuesday. StockNews.com upgraded shares of Vertex Pharmaceuticals from a "hold" rating to a "buy" rating in a research note on Tuesday, March 11th. Finally, Leerink Partnrs cut shares of Vertex Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a report on Tuesday. Thirteen equities research analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $515.04.

Insiders Place Their Bets

In other Vertex Pharmaceuticals news, EVP Ourania Tatsis sold 244 shares of Vertex Pharmaceuticals stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $455.06, for a total value of $111,034.64. Following the transaction, the executive vice president now directly owns 67,695 shares of the company's stock, valued at approximately $30,805,286.70. The trade was a 0.36 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP David Altshuler sold 3,231 shares of the firm's stock in a transaction on Monday, March 10th. The stock was sold at an average price of $500.00, for a total transaction of $1,615,500.00. Following the transaction, the executive vice president now directly owns 26,512 shares of the company's stock, valued at approximately $13,256,000. This trade represents a 10.86 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 4,315 shares of company stock valued at $2,121,012 over the last three months. 0.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Vertex Pharmaceuticals

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VRTX. ABC Arbitrage SA acquired a new position in shares of Vertex Pharmaceuticals in the fourth quarter worth $1,510,000. Czech National Bank grew its position in shares of Vertex Pharmaceuticals by 6.2% during the fourth quarter. Czech National Bank now owns 55,838 shares of the pharmaceutical company's stock worth $22,486,000 after acquiring an additional 3,260 shares during the last quarter. Highview Capital Management LLC DE raised its position in Vertex Pharmaceuticals by 1.8% in the 4th quarter. Highview Capital Management LLC DE now owns 5,771 shares of the pharmaceutical company's stock valued at $2,324,000 after purchasing an additional 102 shares during the last quarter. Davidson Investment Advisors raised its holdings in shares of Vertex Pharmaceuticals by 26.0% in the fourth quarter. Davidson Investment Advisors now owns 61,161 shares of the pharmaceutical company's stock valued at $24,630,000 after buying an additional 12,631 shares during the last quarter. Finally, Jones Financial Companies Lllp raised its stake in shares of Vertex Pharmaceuticals by 75.5% during the fourth quarter. Jones Financial Companies Lllp now owns 2,468 shares of the pharmaceutical company's stock worth $994,000 after purchasing an additional 1,062 shares during the last quarter. Hedge funds and other institutional investors own 90.96% of the company's stock.

Vertex Pharmaceuticals Stock Up 0.3 %

The company has a quick ratio of 2.35, a current ratio of 2.69 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $110.80 billion, a PE ratio of -195.91, a PEG ratio of 2.11 and a beta of 0.51. The firm's fifty day moving average is $489.96 and its 200-day moving average is $466.24.

About Vertex Pharmaceuticals

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.