Valeant Pharmaceuticals International (VRX) Is Up On ValueAct Stake

Paterniano Del Favero
Marzo 17, 2017

Over the past two years, Valeant stock has tanked almost 95% from the firm's initial purchase price of $190 to $11 a share.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX)'s share price fell 0.1% on Wednesday after an insider sold shares in the company.

"At its current market value, the Valeant position represented 1.5% to 3% of the various Pershing Square funds; however, the investment required a disproportionately large amount of time and resources", read the statement. Morgan Stanley restated an "equal weight" rating and set a $12.00 price objective (down previously from $17.00) on shares of Valeant Pharmaceuticals Intl in a report on Saturday, March 11th. While some analysts have a High Price target for the stock of $55 and a Low Price Target of $8. In the last five years, the company's full-year sales growth remained over 31.90% a year on average and the company's earnings per share moved up by an average rate of 12.66%.

For the quarter ending 11/08/2016, The Analyst projected that the company could deliver EPS of 1.75 while the company provided its Actual EPS of 1.55 showing a difference of -0.2 Percent between the Estimated and Actual EPS.

Considering the performance, Valeant Pharmaceuticals International, Inc. Share performance for the month is now at -26.45%.

When the dust cleared and Ackman liquidated his 27.2 million shares of Valeant Pharmaceuticals this week at prices ranging from $11.10 to $11.40, the activist hedge fund manager posted losses of between $2.8 billion and $4 billion, according to research from financial analytics firm S3 Partners' Ihor Dusaniwsky. On average, analysts forecast that Valeant Pharmaceuticals Intl Inc will post $3.89 EPS for the current fiscal year.

Valeant Pharmaceuticals International, Inc. Capstone Asset Management Co. now owns 26,408 shares of the specialty pharmaceutical company's stock worth $648,000 after buying an additional 360 shares during the last quarter. (NYSE:VRX) has a market capitalization of 3.83 Billion. The company reached a 52-week low at 10.5 on Mar 14, 2017. The stock is now trading with a distance of 20-Day Simple Moving Average (SMA20) of -22.71%.

Probes into its business practices, accounting and drug pricing caused a collapse in Valeant's shares and the company is now offloading assets to try and pay down debt, amassed during a years-long acquisition spree.

While Looking at Sales Growth (Year/est), the company is now showing a percentage value of -28.9 percent.

In a Thursday filing with the Securities and Exchange Commission, the hedge fund reported that it bought 3 million shares on Tuesday, increasing its stake to about 5.2 percent.

Since the beginning of the calendar year, the stock is -24.17%. According to them, the median (average) EPS the company could deliver is 0.91/share. The Company now has Insider ownership of 2.3 Percent and Institutional Ownership of 66.8 Percent.

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