One Reason Why Valeant (VRX) Stock Is Down Today
NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) stock is declining 1.93% to $25.40 in early-afternoon trading on Monday after Jana Partners exited its stake in the pharmaceutical company.
The New York-based hedge fund disclosed in its quarterly update that it sold its stake in Valeant during the first quarter.
David Tepper's hedge fund Appaloosa Management similarly bought nearly 1 million shares in the drugmaker during the first three months of 2016 but sold them during the first quarter, CNBC reported.
Additionally, Valeant will expand discounts for its heart drugs Nitropress and Isuprel to as much as 40% following scrutiny of its drug pricing practices. Last week, the New York Timesreported that several large hospitals had not received discounts on the drugs that the pharmaceutical company pledged at a recent Senate hearing.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Valeant's weaknesses include its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: VRX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
