Valeant Pharmaceuticals, DSW, Kandi Technologies News Today

Valeant Pharmaceuticals Intl Inc (VRX), DSW Inc. (DSW), and Kandi Technologies Group Inc (KNDI) are in the news today

Mar 14, 2017 at 9:29 AM
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The Dow is set to open lower as pre-Fed meeting anxiety and lower oil prices weigh on stocks. Meanwhile, among specific names in focus are drugmaker Valeant Pharmaceuticals Intl Inc (NYSE:VRX), shoe retailer DSW Inc. (NYSE:DSW), and electric car stock Kandi Technologies Group Inc (NASDAQ:KNDI). Here's a quick roundup of the headlines moving shares of VRX, DSW, and KNDI.

Ackman Exit Sends Valeant Stock Tumbling

VRX is set to open at its lowest level in nearly eight years, down 10.7% ahead of the bell, following news activist investor Bill Ackman has abandoned his position in the stock. Speaking to CNBC, Ackman noted that he "should have sold" the stock earlier. According to his hedge fund, Pershing Square, Ackman will remain on Valeant Pharmaceutical Intl Inc's board for now, but will not seek re-election. Subsequently, BMO cut VRX's price target to $15 from $19. VRX stock has shed 82.5% over the past 12 months, closing Monday at $12.11, so it's no surprise the equity is surrounded by pessimism. Not only have short sellers been targeting the drugmaker, but options traders have taken an unusually bearish approach, per VRX's 10-day put/call volume ratio of 0.67 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- higher than 84% of the past year's readings.

Earnings Beat Boosts DSW Shares

Though quarterly sales fell short of estimates, a per-share earnings beat has DSW up 2.4% in electronic trading. The news could inspire analysts to upwardly revise their opinions on the stock. After all, nine out of 11 brokerage firms currently rate DSW Inc. a "hold" or "strong sell." On the other hand, this downbeat outlook may well be warranted, as last night's close at $19.83 represents the first breach of the $20 mark on a closing basis since last June, and a 26.8% year-over-year decline for the shares.

Kandi Technologies Slides on Past Accounting Concerns

KNDI is sinking 9.2% pre-market, on pace to open just above its November three-year low. Sinking the stock, the company announced its financial statements for 2014 through the third quarter of 2016 cannot be relied upon, as Kandi Technologies Group Inc reassesses its programs for financial reporting and compliance. At $4.35, KNDI has already lost nearly 44% of its value of the last 12 months. As such, the stock is surrounded by short sellers, with these bearish bets representing more than 16% of the stock's total float. At the security's average daily volume, it would take roughly six weeks to cover all these pessimistic positions.

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