Here Is Why Investors Are Talking Technology and Biotech This Morning

The solar and wind euphoria is still strong, as stocks like SolarCity Corp (NASDAQ:SCTY) have continued their advance after U.S. legislators announced a deal to extend federal subsidies on Tuesday. According to the legislation, solar companies may claim tax credits up to 30% of the value of solar panels until the end of 2019, which will then gradually decrease to 10% by the end of 2022 and remain constant from there on.

Approximately 21% of SolarCity Corp (NASDAQ:SCTY)’s common stock was held by 29 hedge funds at the end of September, down from 34 at the end of June. From the hedge funds that we follow, Karthik Sarma’s SRS Investment Management holds the largest investment in this company, which amounts to 8.02 million shares worth $342 million according to the fund’s latest 13F filing.

Bad news are piling up for shareholders of Valeant Pharmaceuticals Intl Inc (NYSE:VRX), as the stock has been downgraded by Mizuho to ‘Neutral’ from the previous ‘Buy’ rating. The firm has also decreased its price target to 130 per share, citing skepticism that the company’s partnership with Walgreens Boots Alliance Inc (NASDAQ:WBA) will help it generate sales that will top expectations. Analysts at Piper Jaffray have reiterated their Positive rating on the stock, but have slashed the price target to $133 per share, down from the previous target of $176 a share.

During the third quarter, 10 hedge funds decided to wind down their positions in Valeant Pharmaceuticals Intl Inc (NYSE:VRX), as the total number of hedge fund positions decreased to 88 by the end of September. Long time Valeant fan, Bill Ackman, was unfazed by the recent storm and has kept his stake in the company, which is the largest among the funds from our database. At the end of the third quarter, Pershing Square held approximately 19.5 million shares valued at $3.47 billion.

Disclosure: none.