Valeant Pharmaceuticals Intl Inc (VRX) Halted Amid 10-K Filing, Board Shake-Up

Valeant Pharmaceuticals Intl Inc (VRX) finally filed its 10-K financial report, while its board of directors is seeing major changes

Apr 29, 2016 at 9:59 AM
facebook X logo linkedin


Valeant Pharmaceuticals Intl Inc (NYSE:VRX) filed its long-awaited annual report this morning and subsequently restated its fourth-quarter results -- revising its adjusted per-share earnings down to $1.55 from $2.50. The 10-K financial report technically wasn't due for another month, but the drugmaker said in recent weeks it was aiming for a late-April filing.

Also, just minutes ago, the company announced five current independent directors -- including Bill Ackman -- will not be standing for re-election, while Valeant's new CEO, Joseph Papa, has been nominated. VRX was halted on the board shake-up, but has since started trading. Good news for bullish options traders, though, is that the shares were last seen up 0.7% at $35.49.

Call buying on the beaten-down stock has been popular in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 1.54 calls for each put over the past 10 weeks. The corresponding call/put volume ratio ranks in the high 82nd percentile of its annual range. Likewise, VRX's Schaeffer's put/call open interest ratio (SOIR) checks in at 0.90 -- lower than 94% of all comparable readings taken in the prior year.

On the flip side, short sellers and analysts may be shaken by the stock's early gains. Short interest on VRX exploded nearly 90% during the last two reporting periods. As such, some of the recent call buying may be a result of shorts hedging their bearish bets. Meanwhile, 65% of brokerages tracking the drugmaker's shares consider them a "hold" or worse.

History seems to be on the side of the bears. While Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has made strides in recent weeks, it remains a long-term underperformer. This year alone, the stock has lost over 65% of its value, and it has also underperformed the broader S&P 500 Index (SPX) by more than 65 percentage points during the past 60 sessions.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI