On September 19, 2023, Carmen Bozic, the Executive Vice President and Chief Medical Officer of Vertex Pharmaceuticals Inc, sold 5,651 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 11,302 shares and purchased none.
Vertex Pharmaceuticals Inc is a global biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases. The company has a portfolio of multiple approved medicines that treat the underlying cause of cystic fibrosis (CF) — a rare, life-threatening genetic disease — and has several ongoing clinical and research programs in CF.
The insider's recent sell comes at a time when the stock is trading at $351 per share, giving the company a market cap of $91.44 billion. The price-earnings ratio stands at 27.36, which is lower than the industry median of 31.52 but higher than the company’s historical median price-earnings ratio.
The insider transaction history for Vertex Pharmaceuticals Inc shows a trend of more sells than buys. Over the past year, there have been 54 insider sells and no insider buys. This could be an indication of the insiders' sentiment about the company's future prospects.
The GF Value, an intrinsic value estimate developed by GuruFocus, is calculated based on historical multiples, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts. With a price of $351 and a GuruFocus Value of $337.85, Vertex Pharmaceuticals Inc has a price-to-GF-Value ratio of 1.04. This suggests that the stock is fairly valued.
The insider's decision to sell shares could be based on a variety of factors. It could be a personal decision or it could be based on the insider's assessment of the company's current valuation and future prospects. However, it's important for investors to consider the broader context and not base investment decisions solely on insider activity.
While the insider's recent sell might raise some eyebrows, it's worth noting that the company's fundamentals remain strong. Vertex Pharmaceuticals Inc continues to invest in scientific innovation and has a robust portfolio of medicines. As always, investors should do their own research and consider a variety of factors before making investment decisions.
