On July 10, 2024, Carmen Bozic, Executive Vice President and Chief Medical Officer of Vertex Pharmaceuticals Inc (VRTX, Financial), sold 2,280 shares of the company. The transaction was executed at a price of $487.34 per share, as detailed in the SEC Filing. Following this sale, the insider now owns 27,819 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 focus on developing and commercializing therapies for the treatment of cystic fibrosis and advancing research and development programs in other areas of high unmet medical need, including pain, rare diseases, and hematology.
Over the past year, Carmen Bozic has sold a total of 43,025 shares of Vertex Pharmaceuticals Inc and has not made any purchases of the stock. This recent transaction is part of a broader trend observed within the company, where there have been 65 insider sells and no insider buys over the same timeframe.
Shares of Vertex Pharmaceuticals Inc were trading at $487.34 on the day of the sale, giving the company a market cap of approximately $126.12 billion. The price-earnings ratio of the company stands at 31.72, which is above both the industry median of 27.65 and the company's historical median.
According to the GF Value, the intrinsic value of Vertex Pharmaceuticals Inc is estimated at $367.64 per share, making the stock significantly overvalued with a price-to-GF-Value ratio of 1.33. The GF Value is calculated based on historical trading multiples, an adjustment factor from GuruFocus, and future business performance estimates from analysts.
This insider sale comes at a time when the stock price is significantly above its estimated intrinsic value, suggesting that the insider might perceive the stock as being overvalued at current levels. Investors and analysts often monitor insider sales as they can provide insights into how insiders view the stock's current valuation.
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.
