5 Best Debt Free Stocks To Buy

3. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Number of Hedge Fund Holders: 54

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a biotech firm that develops therapies for the treatment of cystic fibrosis. On November 6, the firm posted earnings for the third quarter of 2023, reporting earnings per share of $4.08, beating market estimates by $0.11. The revenue over the period was $2.4 billion, up more than 6% compared to the revenue over the same period last year but missing market estimates by $20 million. The firm raised the 2023 product revenue guidance to around $9.9 billion.

On November 7, investment advisory Piper Sandler maintained an Overweight rating on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) stock and raised the price target to $400 from $390, noting the firm delivered a solid non-GAAP EPS beat in the third quarter.  

At the end of the second quarter of 2023, 54 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), compared to 44 in the previous quarter worth $1.7 billion.

In its Q2 2023 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was one of them. Here is what the fund said:

“Notable adds in the quarter included Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) and Intuit. Vertex is one of the only pharmaceutical companies in the world with an effective drug for cystic fibrosis, but the market has deemed it a slow-growth company due to existing market penetration. However, the drug is enabling patients to live longer, and the drug’s patient base is growing. Also, the company is developing a more potent formulation that we believe could increase efficacy while giving Vertex an opportunity to reprice and improve margins. Finally, its cystic fibrosis franchise is very cash generative, and the company has been using the capital to invest in a pipeline that we believe includes some interesting longer term opportunities. We added to the position after a couple of positive developments this quarter. First, its competitive position strengthened when a competitor, AbbVie, announced it will discontinue all work in cystic fibrosis. Second, there have been positive developments from the company’s pipeline, including encouraging early-stage results for a Type 1 diabetes stem cell therapy.”