Why Bausch Health Stock Is Jumping Today
Shares of Bausch Health Companies (NYSE: BHC) were jumping 8.7% higher as of 11:02 a.m. ET on Wednesday after rising as much as 13% earlier in the day. The solid gain reflected a rebound after the pharmaceutical company's shares fell on Tuesday on Bausch's update that Tom Vadaketh had resigned as CFO to "pursue another opportunity." Environmental services company Enviri announced on Tuesday that Vadaketh would be coming on board as its CFO.
It's not unusual for a stock to decline on the news of a shuffling among its executive ranks. When a CFO unexpectedly leaves, investors inevitably begin to wonder if there could be an accounting scandal or some other issue behind the move. In the case of Vadaketh's exit, investors were also probably concerned that a leader of Bausch Health's financial turnaround would no longer be at the helm.
Tuesday's sell-off of the pharma stock reflected this uncertainty. However, it didn't take some investors very long to view the dip as a buying opportunity.
Source Fool.com
