Grifols (NASDAQ:GRFS) stock is falling hard on Tuesday after the company was hit with criticism from hedge fund Gotham City Research.
The report against Grifols highlights several issues that Gotham City Research has with the Spanish plasma therapeutic company. That includes the company’s accounting practices and its earnings before interest, taxes, depreciation and amortisation (EBITDA).
According to Gotham City Research, Grifols has a leverage ratio of 10 to 13 times EBITDA. That’s a far cry from the six times EBITDA that the company has reported.
Tomas Daga, a member of the Grifols Board of Directors, said the following to Reuters when asked about the short report from Gotham City Research.
“Our house is clean, we are very sure about that. We will explain it again point by point. If someone creates nervousness and confusion, what do you want me to say.”
How This Affects GRFS Stock
Shares of GRFS stock are experiencing heavy trading on Tuesday as investors sell their shares on the short report. That has more than 3.3 million shares of the stock changing hands as of this writing. That’s already well above its daily average trading volume of about 911,000 shares.
GRFS stock is down 37.7% as of Tuesday morning.
Investors who are searching for even more of the most recent stock market stories are going to want to stick around!
We have all of the hottest stock market coverage that traders need to know about on Tuesday! A few examples include what has shares of Elicio Therapeutics (NASDAQ:ELTX) and Sentage (NASDAQ:SNTG) stock rising, as well as a look at the biggest pre-market stock movers this morning. You can read up on all of these matters at the following links!
More Tuesday Stock Market News
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
