Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) stock fell -1.22% on Friday to $292.16 against a previous-day closing price of $295.77. With 1.16 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.63 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $297.76 whereas the lowest price it dropped to was $289.78. The 52-week range on VRTX shows that it touched its highest point at $301.80 and its lowest point at $176.36 during that stretch. It currently has a 1-year price target of $303.93. Beta for the stock currently stands at 0.45.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VRTX was up-trending over the past week, with a rise of 6.30%, but this was up by 1.19% over a month. Three-month performance surged to 24.34% while six-month performance rose 19.62%. The stock gained 49.63% in the past year, while it has gained 33.04% so far this year. A look at the trailing 12-month EPS for VRTX yields 9.49 with Next year EPS estimates of 15.41. For the next quarter, that number is 3.62. This implies an EPS growth rate of -12.50% for this year and 8.92% for next year. EPS is expected to grow by 8.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 85.00%.
Float and Shares Shorts:
On Jul 14, 2022, short shares totaled 3.59 million, which was 1.40% higher than short shares on Jun 14, 2022. In addition to Dr. Jeffrey Marc Leiden M.D., Ph.D. as the firm’s Exec. Chairman, Dr. Reshma Kewalramani FASN, M.D. serves as its CEO, Pres & Director.
Through their ownership of 94.14% of VRTX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.48% of VRTX, in contrast to 31.91% held by mutual funds. Shares owned by individuals account for 1.07%. As the largest shareholder in VRTX with 7.61% of the stake, The Vanguard Group, Inc. holds 19,458,715 shares worth 19,458,715. A second-largest stockholder of VRTX, BlackRock Fund Advisors, holds 15,079,781 shares, controlling over 5.90% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in VRTX, holding 12,666,130 shares or 4.95% stake. With a 2.95% stake in VRTX, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 7,540,462 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.21% of VRTX stock, is the second-largest Mutual Fund holder. It holds 5,661,332 shares valued at 1.6 billion. Vanguard Health Care Fund holds 1.82% of the stake in VRTX, owning 4,656,632 shares worth 1.31 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VRTX since 29 analysts follow the stock currently. There are 16 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With VRTX analysts setting a high price target of $389.00 and a low target of $250.00, the average target price over the next 12 months is $307.21. Based on these targets, VRTX could surge 33.15% to reach the target high and fall by -14.43% to reach the target low. Reaching the average price target will result in a growth of 5.15% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. VRTX will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $14.89 being high and $13.65 being low. For VRTX, this leads to a yearly average estimate of $14.23. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Vertex Pharmaceuticals Incorporated surprised analysts by $0.13 when it reported $3.60 EPS against a consensus estimate of $3.47. The surprise factor in the prior quarter was -$0.05. Based on analyst estimates, the high estimate for the next quarter is $4.06 and the low estimate is $3.11. The average estimate for the next quarter is thus $3.62.
Summary of Insider Activity:
Insiders traded VRTX stock several times over the past three months with 4 Buys and 28 Sells. In these transactions, 79,665 shares were bought while 162,255 shares were sold. The number of buy transactions has increased to 54 while that of sell transactions has risen to 215 over the past year. The total number of shares bought during that period was 483,205 while 382,026 shares were sold.