Valeant Pharmaceuticals, Target, DryShips News Today

Valeant Pharmaceuticals Intl Inc (VRX), Target Corporation (TGT), and DryShips Inc. (DRYS) are making headlines today

Kirra Fedyszyn
Feb 28, 2017 at 9:29 AM
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The Dow appears on track to snap its 12-session streak of record-high closes, with futures dipping after preliminary fourth-quarter gross domestic product (GDP) data. Among specific equities in focus today are drugmaker Valeant Pharmaceuticals Intl Inc (NYSE:VRX), retail stock Target Corporation (NYSE:TGT), and transport specialist DryShips Inc. (NASDAQ:DRYS). Here's a quick look at the news driving VRX, TGT, and DRYS shares.

Valeant Shares Set to Give Up Support After Mixed Earnings

VRX is set to drop nearly 6% at the open, and could give up the support of its 10-day moving average, as the company's fourth-quarter net loss overshadows an adjusted earnings beat. Based on last night's close at $16.71, the stock has managed to add more than 15% so far in 2017, but that hasn't been enough to impress the brokerage bunch. In fact, 12 out of 14 analysts rate Valeant Pharmaceuticals Intl Inc a "hold" or "strong sell." But with an average 12-month price target of $22.29 -- a level the shares haven't seen in almost four months -- further bearish attention could still be headed VRX's way.

Earnings, Outlook Send Target Sliding

An earnings miss and disappointing outlook have shares of TGT down 14% in electronic trading, on track to open at a two-year low. The stock is already down 14.7% year-over-year, as of Monday's close at $66.91, but further losses may be exactly what options traders are hoping for. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Target Corporation has seen 1.94 puts purchased to open for each call in the last two weeks -- a ratio that's ranked just 6 percentage points from an annual bearish high.

In fact, as Schaeffer's Quantitative Analyst Chris Prybal pointed out, on Feb. 14 and 15 -- when TGT shares were trading around $65 -- a significant number of March 60 puts were bought to open for about $0.40 apiece. This was really good timing on the part of these options bears, considering the intrinsic value on the option is roughly $1.80 now, with about three weeks to go until expiration.

Traders Cheer DryShips' Dividend

DRYS announced it will begin paying a quarterly dividend to shareholders on record as of March 15, though the per-share amount has yet to be determined. This seems to be sitting well with traders, as the shares are up 11.2% ahead of the bell. Of course, that's a drop in the bucket, considering DryShips Inc. has surrendered 93.7% of its value year-to-date, and closed yesterday at $1.87. What's more, the shares were trading at an incredible $1,371.60 this time last year. As such, it's unsurprising analysts are sitting on the sidelines. At present, not one firm is providing coverage on DRYS.

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