Express Scripts Holding (NASDAQ: ESRX)
Express Scripts wasn’t having the best of days in the market today. Unfortunately, as soon as the opening bell rang, the stock started heading for the bottom. However, throughout most of the day, the losses weren’t too big. At least, not until minutes ago, when the stock started spiking downward. Below, we’ll talk about what we’re seeing in the market, why, and what we can expect to see from ESRX ahead.
What We’re Seeing From ESRX
As mentioned above, Express Scripts was off to a relatively rough start in the market today. When the opening bell rang, the stock started heading for the bottom. Throughout the day, it has traded in the red, but losses weren’t anything too big. Nonetheless, minutes ago, the stock started spiking downward in a big way. At the moment (1:00), ESRX is trading at $72.37 per share after a loss of $3.48 per share (4.59%) thus far today.
Why The Stock Is Falling
As usual, when we got the signal from Trade Ideas that ESRX was taking a dive, the CNA Finance team started digging to see exactly what was causing the losses. In this particular case, the cause jumped out at us, and it’s not good. Unfortunately, it seems as though the company is on the Citron bash list. The problem with that is that we know that if Citron’s on it, chances are, there’s a problem.
Earlier today, Citron called Express Scripts the “Philidor of the pharma industry.” That’s a big claim. The reality is that many are pointing out that the company is likely a big reason for the pharma industry’s price gouging. With Donald Trump on the hunt for pharma gougers, and Citron head hunting toward ESRX, things simply aren’t looking good.
What We’ll Be Watching Ahead
Moving forward, the CNA Finance team will be watching ESRX incredibly closely. In particular, we’re interested to see how the Citron issues blow over. We saw with VRX just how hard they can hit. Also, we’ll be watching moves made by Donald Trump. We know he watches news closely, and with this in the news and directly relating to statements he recently made, we’re thinking he may have more to say. Nonetheless, we’ll watch the story closely and bring the news to you as it breaks!
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[Image Courtesy of Wikimedia]