Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is on the move again. Shares of the pharma giant spiked higher in afternoon trading yesterday on a WSJ report that the company was nearing a deal to sell its Salix business to Takeda Pharma for approximately $10 billion.
Valeant shares have been under extreme pressure over the past 12 months in the face of accounting scandals, political pressures from lawmakers, and concerns over its large debt loads. The Salix deal, if completed, would be a large injection of cash, alleviating investor concerns over the company’s financial situation.
Valeant had been trading at a multi-year low before yesterday’s news came out. Notable hedge funds and large institutional holders such as Ruane, Cuniff & Goldfarb’s Sequoia Fund, one of Valeant’s top shareholders, have been cutting losses and fleeing the stock this year.
VRX June 2016 13F Filings
|Holder||Change in position|
|RUANE, CUNNIFF & GOLDFARB INC||(29,862,007)|
|JACKSON SQUARE PARTNERS, LLC||(7,437,220)|
|EAGLE CAPITAL MANAGEMENT LLC||(5,867,292)|
|HOUND PARTNERS, LLC||(4,961,079)|
|TOURBILLON CAPITAL PARTNERS, L.P.||(3,415,000)|
Investors should note that Valeant is one of the top 25 holdings within the Sprott BUZZ Social Media Insights ETF (NYSE:BUZ). BUZ utilizes advanced artificial intelligence technology and natural language processing to analyze and measure sentiment across the social media landscape.
Tracking the BUZZ social media insights index (BUZZ), BUZ provides investors with exposure to stocks with the most bullish social momentum, rebalanced on a monthly basis. Valeant had remained out of the BUZZ index through the company’s downturn in 2015.
Interestingly, social sentiment picked up significantly in April this year as investors became bullish on the stock as a value play, propelling Valeant into one of the top holdings in BUZ, suggesting a turnaround may be in the works — and that the recent major shareholder selling might be a mistake.