Daiwa initiates Vertex Pharmaceuticals Incorporated [VRTX] at Outperform and sets price target at $250

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Daiwa launched its Vertex Pharmaceuticals Incorporated [NASDAQ:VRTX]‎ rating to the equivalent of ‎Outperform and assigned the ‎price target of $250, in a ‎research note dated December 30, 2020. That ‎figure represents around a 7.07% premium ‎from where ‎the company’s shares closed on Tuesday.‎ ‎Other analysts also revised their coverage, with RBC Capital Mkts’s analysts ‎upgrading the shares from ‎‎”a Sector perform” rating to “an Outperform” rating in a research note to ‎investors issued in late ‎November. Meanwhile, Bernstein had launched its coverage on VRTX with “an ‎Outperform”, in a ‎research note produced for clients November 20, 2020. In addition, there was a new ‎coverage from ‎UBS on October 28, 2020. The research firm rated VRTX “a Buy”.

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Is Vertex Pharmaceuticals Incorporated [NASDAQ:VRTX] a Good Buy Right Now?

It ‎should ‎be noted that VRTX technical indicators for short, intermediate as well as long term progress ‎have ‎placed an overall average of 40% as Sell. The average signal changed from 40% Sell in the last ‎week and ‎compares with 88% Sell in the past month. Data from Vertex Pharmaceuticals Incorporated’s ‎Trend ‎Spotter indicated that the signals were Weakening. The stock current average is 1.46 million ‎shares in ‎the past 20 days and the short term average signal indicates a Hold. In the last 50 days, the ‎average ‎trading volume was 1.97 million shares while the medium term average advocated for 50% ‎Sell. The ‎average long-term signal stands at 100% Sell and the 100-day average volume stands at 1.79 ‎million ‎shares.‎‎

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VRTX Price Performance

On Wall Street, Vertex Pharmaceuticals ‎Incorporated ‎‎[NASDAQ:VRTX] finished Tuesday’s session up 0.44% at $233.49. The stock went up to ‎‎$236.56 at the ‎same session while its lowest single day price was $232.96. In the last five days, it saw a ‎fall of about -‎‎0.45%, Vertex Pharmaceuticals Incorporated shares gained by almost 6.64% since the ‎beginning of the ‎year. However, the share price has dropped to as low as -23.72% below its one year ‎high. On 07/07/20, ‎the company shares recorded $306.08, the highest single-day price it has got to in ‎the last 52-weeks ‎and a 52-week low was seen on 03/18/20, the same year at $197.47. The company’s ‎shares have ‎inclined by 6.63% in the past year. The 50-day SMA achieved is $221.82 while the 200-day ‎SMA is ‎‎$256.72. Volume dropped to 0.66 million from 0.9 million in the previous session.‎‎

Vertex Pharmaceuticals Incorporated [VRTX] Valuation Measures

Notably, ‎Vertex ‎Pharmaceuticals Incorporated [VRTX] stock can be classified as a good candidate in the listing ‎of ‎underestimated low-priced Biotechnology companies to purchase soonest possible with the ‎prevailing ‎‎12-month PE ratio of 22.85. The measure means the stock is exchanging at a discount as ‎compared to ‎the 41.03x trailing earnings of the industry. It can be helpful for investors to consider ‎historical price-‎sales ratio, more specifically, a 10.19 PS value ratio is reported for the last one year of ‎reported ‎earnings. That is lower than the industry average of 19.81 which means VRTX serve an ‎attractive ‎investment opportunity compared to its competitors.‎

VRTX Stock Support And Resistance Levels

On the 24-hour scale, the immediate backing ‎is ‎perceived around 232.11 level, and in case of violation of this particular level, it will cause more drop ‎to ‎‎230.74 level. On the upper level, 237.94 is still the key resistance. The stock may increase to ‎the ‎subsequent resistance at 235.71. The Relative Strength Index (RSI) pinned on the 14-day chart is ‎‎56.44, ‎implying a neutral technical stance while the MACD stands at 1.97, meaning price will increase in ‎the ‎next trading period. Percent R indicator moved to 33.12%, implying low price movement. ‎Stochastic %K ‎at 66.79% suggest selling the stock.‎‎

What is the short interest in Vertex Pharmaceuticals Incorporated?

Short interest in ‎the ‎Vertex Pharmaceuticals Incorporated stock has plunged, decreasing by -0.5 million shares to total ‎‎3.25 ‎million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 2.75 million, ‎data ‎from Yahoo Finance shows. The increase of 15.38% suggests the stock saw some increased ‎bearish ‎sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account ‎for just ‎‎1.25% of the overall float for the stock.‎‎

Vertex Pharmaceuticals Incorporated’s Biggest Shareholders: Who Owns Vertex ‎Pharmaceuticals ‎Incorporated [VRTX]?

Filings by T. Rowe Price Associates, Inc. showed that the ‎firm now holds a ‎total of 20,370,924 shares or roughly 7.83% of the outstanding VRTX shares. This ‎means their shares ‎have reduced by -827,578 from the 20,370,924 the investor reportedly held in its ‎prior 13-F filing. With ‎the conclusion of the sale, The Vanguard Group, Inc. updated stake is worth ‎‎$4,431,835,989. Details in ‎the latest 13F filings reveal that Fidelity Management & Research Co acquired ‎their 5.15% stake valued ‎at $4,424,946,096 while BlackRock Fund Advisors cut theirs at $3,743,290,346. ‎During the last quarter, ‎Fidelity Management & Research Co raised 950,983 of its shares in Vertex ‎Pharmaceuticals ‎Incorporated while BlackRock Fund Advisors sold -316,413 shares. The SSgA Funds ‎Management, Inc.’s ‎holdings currently number 11,361,946 shares at $2652900771.54. According to the ‎firm’s last 13F report, ‎Capital Research & Management Co shares in the company at filing stood at ‎‎11,360,515 shares, roughly ‎‎$2,587,357,291.‎‎

VRTX Earnings Forecast For The Current Quarter

Vertex Pharmaceuticals ‎Incorporated ‎‎[VRTX] is expected to report strong earnings results for the quarter ending on Dec 2020. ‎Consensus ‎estimates give the company expected revenues of $1.59B and an earnings per share of ‎‎$2.58 for Dec ‎‎2020. Looking further ahead, the company is expected to report revenue of $1.65B at an ‎EPS of $2.69 ‎for Mar 2021. The estimates represent upside of 13.10% and 11.38% in the company’s ‎revenue and ‎earnings per share, respectively, on a year-on-year basis.‎‎

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VRTX Earnings Estimates For The ‎Current ‎Year

For the financial year, Vertex Pharmaceuticals Incorporated [NASDAQ:VRTX] is ‎expected to ‎bring in revenue of $6.15B. The returns are nearly $2.14 billion higher than the company’s ‎actual ‎revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 10.35, ‎higher ‎than that of FY19 by $5.02. Estimates put this year’s earnings growth at 94.20%, 11.30% for the ‎next, ‎and at an annual 25.34% over the next 5-year period. As for sales, forecasts are for an increase ‎of ‎‎53.50% in the current fiscal year and a further 13.10% over the following year.‎


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