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AstraZeneca plc (ADR) (AZN), GlaxoSmithKline plc (ADR) (GSK): AbbVie Inc (ABBV) Insiders Are Buying, Should You?

AbbVie Inc (NYSE:ABBV) investors should be aware of an increase in hedge fund sentiment of late, and we’ll compare the company to peers like GlaxoSmithKline plc (ADR) (NYSE:GSK) and AstraZeneca plc (ADR) (NYSE:AZN).

AstraZeneca plc (ADR) (NYSE:AZN)In the 21st century investor’s toolkit, there are tons of indicators investors can use to watch their holdings. A pair of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can outclass the market by a superb margin (see just how much).

Equally as integral, optimistic insider trading activity is another way to break down the investments you’re interested in. Just as you’d expect, there are plenty of motivations for an upper level exec to drop shares of his or her company, but only one, very simple reason why they would buy. Several empirical studies have demonstrated the useful potential of this method if “monkeys” know where to look (learn more here).

Keeping this in mind, we’re going to take a look at the key action regarding AbbVie Inc (NYSE:ABBV).

What have hedge funds been doing with AbbVie Inc (NYSE:ABBV)?

When looking at the hedgies we track, Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, holds the most valuable position in AbbVie Inc (NYSE:ABBV). Healthcor Management LP has a $106 million position in the stock, comprising 5.8% of its 13F portfolio. The second largest stake is held by Steven Cohen of SAC Capital Advisors, with a $52 million position; 5.8% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Phill Gross and Robert Atchinson’s Adage Capital Management, Charles Davidson’s Wexford Capital and Dan Loeb’s Third Point.

How are insiders trading AbbVie Inc (NYSE:ABBV)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the last half-year time period, AbbVie Inc (NYSE:ABBV) has seen 2 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to AbbVie Inc (NYSE:ABBV). Some of these stocks are Merck & Co., Inc. (NYSE:MRK), GlaxoSmithKline plc (ADR) (NYSE:GSK), AstraZeneca plc (ADR) (NYSE:AZN) and Bristol Myers Squibb Co. (NYSE:BMY).

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Merck & Co., Inc. (NYSE:MRK) 58 0 3
GlaxoSmithKline plc (ADR) (NYSE:GSK) 16 0 0
Bristol Myers Squibb Co. (NYSE:BMY) 37 0 13
AstraZeneca plc (ADR) (NYSE:AZN) 11 0 0
Eli Lilly & Co. (NYSE:LLY) 34 0 5

With the returns shown by the aforementioned research, retail investors must always watch hedge fund and insider trading sentiment, and AbbVie Inc (NYSE:ABBV) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

Related tickers: Merck & Co., Inc. (NYSE:MRK), GlaxoSmithKline plc (ADR) (NYSE:GSK), AstraZeneca plc (ADR) (NYSE:AZN), Bristol Myers Squibb Co. (NYSE:BMY)

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