GuruFocus - On July 24, 2024, Carmen Bozic, Executive Vice President and Chief Medical Officer of Vertex Pharmaceuticals Inc (NASDAQ:VRTX), sold 2,280 shares of the company. The transaction was executed at a price of $488.46 per share, as detailed in the SEC Filing. Following this sale, the insider now owns 25,539 shares of Vertex Pharmaceuticals Inc.
Vertex Pharmaceuticals Inc, headquartered in Boston, Massachusetts, is a global biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases. The company is known for its focused investment in research and development, which has led to the marketing of several approved medicines that treat the underlying cause of cystic fibrosis (CF).
Over the past year, Carmen Bozic has sold a total of 45,305 shares of Vertex Pharmaceuticals Inc and has not made any purchases of the stock. This recent transaction is part of a broader trend observed over the past year, where there have been 65 insider sells and no insider buys at Vertex Pharmaceuticals Inc.
The stock of Vertex Pharmaceuticals Inc was trading at $488.46 on the day of the sale, giving the company a market cap of approximately $127.03 billion. The price-earnings ratio of the company stands at 31.94, which is above both the industry median of 26.895 and the companys historical median.
According to the GF Value, the intrinsic value of Vertex Pharmaceuticals Inc is estimated at $368.61 per share, making the stock significantly overvalued with a price-to-GF-Value ratio of 1.33.
This valuation assessment is based on historical trading multiples such as the price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, adjusted by a GuruFocus factor based on past returns and growth, and supplemented by future business performance estimates from Morningstar analysts.
The sale by the insider at these valuation levels might attract the attention of investors trying to understand the current market sentiment and the potential future direction of the company's stock price.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This content was originally published on Gurufocus.com
