Vertex Pharmaceuticals (NASDAQ:VRTX) Board of Directors Approves Stock Buyback Program

Vertex Pharmaceuticals (NASDAQ:VRTX) announced that its Board of Directors has initiated a share repurchase plan on Wednesday, July 31st, RTT News reports. The company plans to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the pharmaceutical company to purchase up to 1.2% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.

The Buyback Letter

A number of equities research analysts have issued reports on the company. ValuEngine upgraded Vertex Pharmaceuticals from a “hold” rating to a “buy” rating in a research report on Thursday, August 15th. Maxim Group restated a “hold” rating on shares of Vertex Pharmaceuticals in a research report on Friday, August 2nd. Goldman Sachs Group restated a “buy” rating and set a $220.00 price objective on shares of Vertex Pharmaceuticals in a research report on Thursday, May 23rd. Needham & Company LLC downgraded Vertex Pharmaceuticals from a “buy” rating to a “hold” rating in a research report on Thursday, August 1st. They noted that the move was a valuation call. Finally, Stifel Nicolaus upped their price objective on Vertex Pharmaceuticals from $205.00 to $211.00 and gave the company a “buy” rating in a research report on Thursday, August 1st. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and sixteen have assigned a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $206.95.

NASDAQ:VRTX traded down $4.03 during midday trading on Friday, hitting $180.18. The stock had a trading volume of 882,435 shares, compared to its average volume of 1,446,110. Vertex Pharmaceuticals has a one year low of $151.80 and a one year high of $195.81. The company has a market capitalization of $47.91 billion, a price-to-earnings ratio of 63.67, a PEG ratio of 2.43 and a beta of 1.40. The stock has a 50-day moving average of $177.43 and a 200 day moving average of $178.41. The company has a quick ratio of 3.63, a current ratio of 3.74 and a debt-to-equity ratio of 0.12.

Vertex Pharmaceuticals (NASDAQ:VRTX) last announced its quarterly earnings data on Wednesday, July 31st. The pharmaceutical company reported $0.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.75 by $0.24. Vertex Pharmaceuticals had a return on equity of 21.73% and a net margin of 64.13%. The company had revenue of $941.29 million for the quarter, compared to analysts’ expectations of $884.66 million. During the same quarter in the prior year, the firm earned $0.94 earnings per share. Vertex Pharmaceuticals’s revenue was up 25.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Vertex Pharmaceuticals will post 3.41 earnings per share for the current fiscal year.

In other Vertex Pharmaceuticals news, Director Sangeeta N. Bhatia sold 720 shares of the stock in a transaction on Monday, June 3rd. The stock was sold at an average price of $167.08, for a total transaction of $120,297.60. Following the sale, the director now owns 7,260 shares of the company’s stock, valued at approximately $1,213,000.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Jeffrey M. Leiden sold 56,030 shares of the stock in a transaction on Tuesday, June 18th. The shares were sold at an average price of $175.39, for a total value of $9,827,101.70. Following the sale, the chief executive officer now directly owns 162,317 shares in the company, valued at approximately $28,468,778.63. The disclosure for this sale can be found here. In the last three months, insiders sold 94,361 shares of company stock worth $16,825,553. 0.70% of the stock is owned by insiders.

About Vertex Pharmaceuticals

Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for treating cystic fibrosis. The company markets SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO to treat patients with cystic fibrosis who have specific mutations in their cystic fibrosis transmembrane conductance regulator gene.

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