What’s a smart Smith & Nephew plc (ADR) (NYSE:SNN) investor to do?
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Just as key, positive insider trading sentiment is another way to look at the financial markets. Obviously, there are a variety of stimuli for a bullish insider to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this method if you know what to do (learn more here).
Furthermore, let’s study the recent info for Smith & Nephew plc (ADR) (NYSE:SNN).
Hedge fund activity in Smith & Nephew plc (ADR) (NYSE:SNN)
At Q2’s end, a total of 7 of the hedge funds we track were long in this stock, a change of 17% from the first quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings significantly.
Out of the hedge funds we follow, Ken Fisher’s Fisher Asset Management had the biggest position in Smith & Nephew plc (ADR) (NYSE:SNN), worth close to $58.9 million, comprising 0.2% of its total 13F portfolio. Coming in second is Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $6.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include David Dreman’s Dreman Value Management, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.
Now, certain bigger names were leading the bulls’ herd. Fisher Asset Management, managed by Ken Fisher, initiated the biggest position in Smith & Nephew plc (ADR) (NYSE:SNN). Fisher Asset Management had 58.9 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $6.2 million investment in the stock during the quarter. The other funds with new positions in the stock are David Dreman’s Dreman Value Management, Jim Simons’s Renaissance Technologies, and D. E. Shaw’s D E Shaw.
How have insiders been trading Smith & Nephew plc (ADR) (NYSE:SNN)?
Bullish insider trading is at its handiest when the company in question has seen transactions within the past six months. Over the last 180-day time period, Smith & Nephew plc (ADR) (NYSE:SNN) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Smith & Nephew plc (ADR) (NYSE:SNN). These stocks are Varian Medical Systems, Inc. (NYSE:VAR), Zimmer Holdings, Inc. (NYSE:ZMH), Edwards Lifesciences Corp (NYSE:EW), St. Jude Medical, Inc. (NYSE:STJ), and Boston Scientific Corporation (NYSE:BSX). This group of stocks are in the medical appliances & equipment industry and their market caps are closest to SNN’s market cap.