Do Hedge Funds and Insiders Love Johnson & Johnson (JNJ)?

Page 1 of 2

Johnson & Johnson (NYSE:JNJ) was in 67 hedge funds’ portfolio at the end of December. JNJ has experienced a decrease in hedge fund interest in recent months. There were 79 hedge funds in our database with JNJ holdings at the end of the previous quarter. Johnson & Johnson was downgraded by JP Morgan earlier this morning, so it’s worth delving into this data further.

Johnson & Johnson (NYSE:JNJ)Credit: Johnson & Johnson (NYSE:JNJ)

In the financial world, there are many indicators market participants can use to track the equity markets. A couple of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outclass their index-focused peers by a solid amount (see just how much).

Just as beneficial, optimistic insider trading activity is another way to parse down the financial markets. There are plenty of motivations for an executive to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this tactic if piggybackers understand where to look (learn more here).

With these “truths” under our belt, let’s take a peek at the recent action regarding Johnson & Johnson (NYSE:JNJ).

What does the smart money think about Johnson & Johnson (NYSE:JNJ)?

In preparation for this year, a total of 67 of the hedge funds we track were bullish in this stock, a change of -15% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes meaningfully.

According to our comprehensive database, Ken Fisher’s Fisher Asset Management had the most valuable position in Johnson & Johnson (NYSE:JNJ), worth close to $728.7 million, accounting for 2% of its total 13F portfolio. The second largest stake is held by Yacktman Asset Management, managed by Donald Yacktman, which held a $588.5 million position; the fund has 3.5% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Prem Watsa’s Fairfax Financial Holdings, Kerr Neilson’s Platinum Asset Management and George Soros’s Soros Fund Management.

Seeing as Johnson & Johnson (NYSE:JNJ) has faced declining sentiment from hedge fund managers, it’s safe to say that there was a specific group of money managers that decided to sell off their full holdings in Q4. Intriguingly, Sean Cullinan’s Point State Capital sold off the largest investment of all the hedgies we monitor, comprising about $158.5 million in call options. Robert Rodriguez and Steven Romick’s fund, First Pacific Advisors LLC, also dumped its stock, about $134.4 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 12 funds in Q4.

How have insiders been trading Johnson & Johnson (NYSE:JNJ)?

Insider buying is at its handiest when the company in focus has seen transactions within the past six months. Over the latest 180-day time period, Johnson & Johnson (NYSE:JNJ) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Johnson & Johnson (NYSE:JNJ). These stocks are GlaxoSmithKline plc (ADR) (NYSE:GSK), Merck & Co., Inc. (NYSE:MRK), Sanofi SA (ADR) (NYSE:SNY), Novartis AG (ADR) (NYSE:NVS), and Pfizer Inc. (NYSE:PFE). All of these stocks are in the drug manufacturers – major industry and their market caps are closest to JNJ’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!