It’s an appealing income play to consider Vertex Pharmaceuticals Incorporated (VRTX)

After closing at $285.14 in the most recent trading day, Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) closed at 286.94, up 0.63%. In other words, the price has increased by $+1.80 from its previous closing price. On the day, 1110842 shares were traded. VRTX reached its highest trading level at $288.47 during the session, while it also had its lowest trading level at $282.47.

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Ratios:

Our goal is to gain a better understanding of VRTX by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 7.90 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 19.29. For the most recent quarter (mrq), Quick Ratio is recorded 4.40 and its Current Ratio is at 4.50. In the meantime, Its Debt-to-Equity ratio is 0.04 whereas as Long-Term Debt/Eq ratio is at 0.04.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Cantor Fitzgerald on July 13, 2022, initiated with a Overweight rating and assigned the stock a target price of $365.

On June 01, 2022, Maxim Group Upgraded its rating to Buy which previously was Hold but kept the price unchanged to $325.

On May 23, 2022, SVB Leerink started tracking the stock assigning a Mkt Perform rating and target price of $265.SVB Leerink initiated its Mkt Perform rating on May 23, 2022, with a $265 target price.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Aug 15 when Kewalramani Reshma sold 11,689 shares for $305.06 per share. The transaction valued at 3,565,846 led to the insider holds 99,598 shares of the business.

Arbuckle Stuart A sold 22,173 shares of VRTX for $6,738,991 on Aug 15. The EVP, COO now owns 45,278 shares after completing the transaction at $303.93 per share. On Aug 15, another insider, Liu Joy, who serves as the SVP, General Counsel of the company, sold 3,747 shares for $303.90 each. As a result, the insider received 1,138,723 and left with 9,605 shares of the company.

Valuation Measures:

As of this moment, Vertex’s Price-to-Earnings (P/E) ratio for their current fiscal year is 23.21, and their Forward P/E ratio for the next fiscal year is 18.54. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.86. For the stock, the TTM Price-to-Sale (P/S) ratio is 8.75 while its Price-to-Book (P/B) ratio in mrq is 6.15.

Stock Price History:

Over the past 52 weeks, VRTX has reached a high of $305.95, while it has fallen to a 52-week low of $176.36. The 50-Day Moving Average of the stock is 287.55, while the 200-Day Moving Average is calculated to be 258.60.

Shares Statistics:

The stock has traded on average 1.47M shares per day over the past 3-months and 1.44M shares per day over the last 10 days, according to various share statistics. A total of 255.90M shares are outstanding, with a floating share count of 255.88M. Insiders hold about 0.20% of the company’s shares, while institutions hold 94.60% stake in the company. Shares short for VRTX as of Jul 14, 2022 were 3.59M with a Short Ratio of 1.93, compared to 3.42M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.40% and a Short% of Float of 1.41%.

Earnings Estimates

Its stock is currently analyzed by 20 different market analysts. On average, analysts expect EPS of $3.52 for the current quarter, with a high estimate of $3.94 and a low estimate of $3, while EPS last year was $3.11. The consensus estimate for the next quarter is $3.59, with high estimates of $3.9 and low estimates of $3.01.

Analysts are recommending an EPS of between $14.9 and $12.94 for the fiscal current year, implying an average EPS of $14.19. EPS for the following year is $15.44, with 24 analysts recommending between $17.99 and $13.74.

Revenue Estimates

A total of 28 analysts have provided revenue estimates for VRTX’s current fiscal year. The highest revenue estimate was $8.83B, while the lowest revenue estimate was $8.29B, resulting in an average revenue estimate of $8.58B. In the same quarter a year ago, actual revenue was $7.57B, up 13.20% from the average estimate. Based on 28 analysts’ estimates, the company’s revenue will be $9.25B in the next fiscal year. The high estimate is $9.67B and the low estimate is $8.82B. The average revenue growth estimate for next year is up 7.80% from the average revenue estimate for this year.