Valeant Pharmaceuticals Intl Inc (VRX) Shares Continue to Increase Even Amid Lowered Guidance Today


Yesterday we reported on a huge 20-year fulfillment deal that was reached between Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Walgreens. This sent the stock soaring all day long.

Today, however, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) had less than spectacular news to announce as they lowered their guidance for 2015. However, investors did not respond negatively at all, as the stock continues to go up in early trading. Originally their guidance expected 2015 revenues to come in at between $11 billion and $11.2 billion, but these numbers have now been lowered to between $10.4 billion and $10.5 billion. Additionally, the company expects revenue to come in at between $12.5 billion and $12.7 billion for fiscal 2016, which is an increase over what is expected this year.

“We are very excited about the strong future given our broad portfolio of brands, our upcoming launch products and our robust R&D pipeline,” CEO J. Michael Pearson said.

The stock is up 6.06% or $6.65 following the news, hitting $116.24 per share. About 6.14M shares traded hands. VRX has declined 50.16% since May 13, 2015 and is downtrending. It has underperformed the S&P500 by 46.49%.

From a total of 18 analysts covering Valeant Pharmaceuticals Intl (NYSE:VRX) stock, 13 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 72% of the ratings are positive. The highest target price is $310 while the lowest target price is $98.0. The mean of all analyst targets is $183.47 which is 57.84% above today’s ($116.24) stock price. Valeant Pharmaceuticals Intl was the topic of 45 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on December 14 with a “Outperform” rating. Jefferies maintained shares with a”Buy” rating and a $172 target share price in their report from a November 2. Mizuho maintained VRX stock in a recent report from November 20 with a “Buy” rating. Bank of America maintained the rating on September 30. Bank of America has a “Buy” rating and a $290 price target on shares. Finally, JP Morgan maintained the stock with a “Overweight” rating in a report they issued on a November 11.

The institutional sentiment decreased to 0.83 in Q2 2015. It’s down 0.10, from 0.93 in 2015Q2. The ratio turned negative, as 105 funds sold all their Valeant Pharmaceuticals Intl Inc shares they owned while 198 reduced their positions. 63 funds bought stakes while 188 increased their total positions. Institutions now own 292.15 million shares which is 1.71% more than the previous share count of 287.23 million in 2015Q2.

Brave Warrior Advisors Llc holds 31.62% of its total portfolio in Valeant Pharmaceuticals Intl Inc, equating to 5.58 million shares. Ruane Cunniff & Goldfarb Inc owns 33.92 million shares representing 31.06% of their total US portfolio. Moreover, Levasseur Capital Partners Llc has 29.76% of their total portfolio invested in the company, equating to 162,394 shares. The New York-based Farley Capital Ii L.P. has a total of 27.18% of their portfolio invested in the stock. Pershing Square Capital Management L.P., a New York-based fund reported 19.47 million shares owned.

Since May 6, 2015, the stock had 1 buy, and 0 selling transactions for a total of $272,395 in net activity. Farmer Ronald Harold bought 1,500 shares worth $272,395. Ubben Jeffrey W sold 4.20M shares worth $925.01M. Mirovsky Pavel sold 38,000 shares worth $9.04M. Chai-Onn Robert Roswell sold 90,938 shares worth $20.24M.

Valeant Pharmaceuticals International, Inc. is a specialty pharmaceutical and medical device company. The company has a market cap of $33.13 billion. The Firm is engaged in developing, manufacturing, and marketing a range of branded, generic and branded generic pharmaceuticals, over-the-counter products, and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment, and aesthetics devices), which are marketed directly or indirectly in over 100 countries. It has 65.79 P/E ratio. The Firm operates through two divisions: developed markets and emerging markets.