Analysts at Deutsche Bank AG initiated coverage on Valeant Pharmaceuticals International Inc. (NYSE: VRX) stock, rating the company at Hold. With a rating of Hold on the stock, Valeant Pharmaceuticals International Inc. has a 52-week high of $225.54. The one-year price target of $44.39 is higher than the opening price of $27.17, that has caused a number of other analysts to report on the stock in recent days. Changes in price targets are not unusual as analysts and brokerage firms will issue periodic updates after beginning or initiating coverage.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) opened at $27.17 yesterday trading between $26.28 and $27.23, and last traded at $26.33, which represents a dip of $0.77 from the previous closing price.
Valeant Pharmaceuticals International Inc. (NYSE: VRX) now has a market cap of 9.15B.
The stock’s average daily volume is 26,481,900 shares out of a total float 301,865,000 and some 14,359,636 shares traded hands yesterday, 1 percent lower than normal. Momentum traders often use upticks in trading volume to identify substantial volume aggregation or distribution by institutional investors, so look for trading volume to pick up in the coming days.
However, a single day of high volume buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Valeant Pharmaceuticals International Inc. (NYSE: VRX) now has a 50-day MA of $27.65 and 200-day MA of $29.13. It has traded in a 52-week range between $18.55 – 225.54 and today’s last price is 0.88% lower than the 52 week high of $225.54.
Earnings growth is an important factor to research when buying stocks and investors seek companies that have increased their earnings at least 25% or more for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.