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

Page 1 of 2

Johnson & Johnson (NYSE:JNJ) is a stalwart, and its massive market cap in excess of $250B allows hedge funds to more or less “park” their assets in a relatively safe company with decent yields.

In the financial world, there are plenty of methods market participants can use to watch their holdings. A pair 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 elite hedge fund managers can trounce the broader indices by a healthy amount (see just how much).

Equally as useful, positive insider trading sentiment is a second way to analyze the investments you’re interested in. As the old adage goes: there are many reasons for an executive to drop shares of his or her company, but just one, very obvious reason why they would buy. Various academic studies have demonstrated the useful potential of this strategy if investors understand where to look (learn more here).

Johnson & Johnson (JNJ)

Keeping this in mind, let’s analyze the latest info surrounding Johnson & Johnson (NYSE:JNJ).

What have hedge funds been doing with Johnson & Johnson (NYSE:JNJ)?

In preparation for the third quarter, a total of 64 of the hedge funds we track were long in this stock, a change of -2% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their holdings substantially.

Out of the hedge funds we follow, Fisher Asset Management, managed by Ken Fisher, holds the largest position in Johnson & Johnson (NYSE:JNJ). Fisher Asset Management has a $872.5 million position in the stock, comprising 2.3% of its 13F portfolio. Coming in second is Donald Yacktman of Yacktman Asset Management, with a $838 million position; the fund has 4% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Prem Watsa’s Fairfax Financial Holdings, D. E. Shaw’s D E Shaw and Kerr Neilson’s Platinum Asset Management.

As┬áJohnson & Johnson (NYSE:JNJ) has experienced dropping sentiment from the smart money’s best and brightest, it’s easy to see that there were a few hedge funds that slashed their full holdings in Q1. Intriguingly, Bill Miller’s Legg Mason Capital Management cut the biggest investment of the 450+ funds we watch, valued at close to $111.6 million in stock, and John Overdeck and David Siegel of Two Sigma Advisors was right behind this move, as the fund dumped about $35.3 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 1 funds in Q1.

What have insiders been doing with Johnson & Johnson (NYSE:JNJ)?

Insider buying is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the latest six-month time frame,┬áJohnson & Johnson (NYSE:JNJ) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators 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). This group of stocks are in the drug manufacturers – major industry and their market caps are similar to JNJ’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!