Are Valeant Pharma (NYSE:VRX) Shares Reaching An Inflection Point; Mizuho Decides to Downgrades Company


Valeant Pharma (NYSE:VRX) Receives a Downgrade

In an interesting research report revealed on Thursday morning, analysts at Mizuho’s division of equities cut shares of Valeant Pharma (NYSE:VRX) stock from their previous “Buy” rating to a “Neutral”. They now have a $130.0 PT on VRX or a 9.73% upside.

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 with a 54.84% above today’s ($118.49) 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 “Outperform” rating. Stifel Nicolaus maintained shares with “Buy” rating and $200 target share price in a report from a November 11. Mizuho maintained VRX stock in a recent report from November 20 with “Buy” rating. Guggenheim maintained the rating on November 6. Guggenheim has a “Buy” rating and a $195.0 price target on shares. Finally, JP Morgan maintained the stock with “Overweight” rating in a report issued on a November 11.

The stock increased 8.12% or $8.9 during the last trading session, striking $118.49. Approximately 3,694 shares of stock traded hands. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has declined 46.83% since May 14, 2015 and is downtrending. It has underperformed by 44.57% the S&P500.

The overall sentiment of institutions has decreased to 0.83 in Q2 2015. Its down 0.10, from 0.93 in 2015Q2. The ratio worsened, as 105 institutions have sold all the shares of Valeant Pharmaceuticals Intl Inc that they owned while 198 funds have taken shares off the table. 63 funds have purchased shares for the first time while 188 added to their positions. These institutions now hold 292.15 million shares or 1.71% more than the 287.23 million shares they owned in 2015Q2.

The Fund Brave Warrior Advisors Llc currently is holding shares equating to 31.62% of its total portfolio in Valeant Pharmaceuticals Intl Inc representing a total of 5.58 million shares. Another fund,Ruane Cunniff & Goldfarb Inc, is holding a total of 33.92 million shares equating to 31.06% of their holdings. Additionally, Levasseur Capital Partners Llc has a 162,394 share stake in Valeant Pharmaceuticals Intl Inc which represents 29.76% of their total portfolio. The Fund, Farley Capital Ii L.P., based out of New York, has also built up a stake in the stock, which represents a total of 27.18% of their total portfolio. Finally Pershing Square Capital Management L.P., a fund which is based in the state of New York reported a total holdings of 19.47 million shares.

Insider activity is a very important aspect to track on any stock. Going back to May 6, 2015, shareholders of Valeant Pharmaceuticals Intl Inc have witnessed 1 insider purchase, and a total of 0 sales equating to a net activity of approximately $272,395 . Farmer Ronald Harold bought 1,500 shares worth approximately $272,395. Ubben Jeffrey W sold 4.20M shares worth approximately $925.01 million. Mirovsky Pavel sold 38,000 shares worth approximately $9.04M. Chai-Onn Robert Roswell sold 90,938 shares worth approximately $20.24M.

Valeant Pharmaceuticals International, Inc. is a specialty pharmaceutical and medical device company. The company has a market cap of $32.11 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 67.07 P/E ratio. The Firm operates through two divisions: developed markets and emerging markets.

According to Zacks Investment Research, “Valeant Pharmaceuticals International, Inc. is a pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics. The Company produces medicines that meet the special health problems of patients. Valeant’s development pipeline strategy comprises both new compounds as well as product life cycle management. Its early and late-stage drug candidates have unique formulations and mechanisms of action including retigabine for the treatment of epilepsy and pain, taribavirin of the treatment of chronic hepatitis C, and several dermatology candidates for the treatment of rosacea, acne, and dermatological fungus. Valeant Pharmaceuticals International, Inc. is headquartered in Mississauga, Canada.”