Vertex Pharmaceuticals Net Income vs. Shares Owned By Insiders

VRTX Stock  USD 468.13  3.57  0.77%   
Based on Vertex Pharmaceuticals' profitability indicators, Vertex Pharmaceuticals is performing exceptionally good at this time. It has a great odds to showcase excellent profitability results in January. Profitability indicators assess Vertex Pharmaceuticals' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1991-06-30
Previous Quarter
-3.6 B
Current Value
B
Quarterly Volatility
461.7 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Vertex Pharmaceuticals' Days Sales Outstanding is fairly stable compared to the past year. Sales General And Administrative To Revenue is likely to rise to 0.26 in 2024, whereas Price To Sales Ratio is likely to drop 10.09 in 2024. At this time, Vertex Pharmaceuticals' Operating Income is fairly stable compared to the past year. Net Income is likely to rise to about 3.8 B in 2024, despite the fact that Accumulated Other Comprehensive Income is likely to grow to (13.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.090.8721
Fairly Up
Slightly volatile
For Vertex Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Vertex Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Vertex Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Vertex Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Vertex Pharmaceuticals over time as well as its relative position and ranking within its peers.
  
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For more information on how to buy Vertex Stock please use our How to Invest in Vertex Pharmaceuticals guide.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vertex Pharmaceuticals. If investors know Vertex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vertex Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.01
Earnings Share
(1.92)
Revenue Per Share
41.185
Quarterly Revenue Growth
0.116
Return On Assets
0.1205
The market value of Vertex Pharmaceuticals is measured differently than its book value, which is the value of Vertex that is recorded on the company's balance sheet. Investors also form their own opinion of Vertex Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Vertex Pharmaceuticals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vertex Pharmaceuticals' market value can be influenced by many factors that don't directly affect Vertex Pharmaceuticals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vertex Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Vertex Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vertex Pharmaceuticals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Vertex Pharmaceuticals Shares Owned By Insiders vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Vertex Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Vertex Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Vertex Pharmaceuticals is rated first in net income category among its peers. It is rated fourth in shares owned by insiders category among its peers . The ratio of Net Income to Shares Owned By Insiders for Vertex Pharmaceuticals is about  51,708,571,429 . At this time, Vertex Pharmaceuticals' Net Income is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Vertex Pharmaceuticals' earnings, one of the primary drivers of an investment's value.

Vertex Pharmaceuticals' Earnings Breakdown by Geography

Vertex Shares Owned By Insiders vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Vertex Pharmaceuticals

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
3.62 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.

Vertex Pharmaceuticals

Insiders Shares

 = 

Executives Shares

+

Employees

 = 
0.07 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.

Vertex Shares Owned By Insiders Comparison

Vertex Pharmaceuticals is currently under evaluation in shares owned by insiders category among its peers.

Vertex Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Vertex Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Vertex Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Vertex Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Vertex Pharmaceuticals, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-14.3 M-13.6 M
Operating Income4.3 B4.5 B
Net Income3.6 B3.8 B
Income Tax Expense760.2 M798.2 M
Income Before Tax4.4 B4.6 B
Total Other Income Expense Net72.3 M75.9 M
Net Income From Continuing Ops3.6 B3.8 B
Non Operating Income Net Other-23.2 M-22.1 M
Net Income Applicable To Common Shares3.8 BB
Interest Income614.7 M645.4 M
Net Interest Income570.6 M599.1 M
Change To Netincome512.4 M437.4 M
Net Income Per Share 14.05  14.75 
Income Quality 0.98  0.71 
Net Income Per E B T 0.83  0.73 

Vertex Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Vertex Pharmaceuticals. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Vertex Pharmaceuticals position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Vertex Pharmaceuticals' important profitability drivers and their relationship over time.

Use Vertex Pharmaceuticals in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Vertex Pharmaceuticals position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vertex Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.

Vertex Pharmaceuticals Pair Trading

Vertex Pharmaceuticals Pair Trading Analysis

The ability to find closely correlated positions to Vertex Pharmaceuticals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vertex Pharmaceuticals when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Vertex Pharmaceuticals - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Vertex Pharmaceuticals to buy it.
The correlation of Vertex Pharmaceuticals is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Vertex Pharmaceuticals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vertex Pharmaceuticals moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Vertex Pharmaceuticals can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Vertex Pharmaceuticals position

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Additional Tools for Vertex Stock Analysis

When running Vertex Pharmaceuticals' price analysis, check to measure Vertex Pharmaceuticals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Vertex Pharmaceuticals is operating at the current time. Most of Vertex Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Vertex Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vertex Pharmaceuticals' price. Additionally, you may evaluate how the addition of Vertex Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.