Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Taro Pharmaceutical Industries Ltd. (TARO) Gaps Open After Release of FY2016 Financial Results

Page 1 of 2

Taro Pharmaceutical Industries Ltd. (NYSE:TARO) is in the spotlight today after the company reported adjusted EPS of $2.68 on sales of $265.1 million for its fourth quarter of fiscal year 2016. Sales rose by 8.6% year-over-year while operating income rose by $28.2 million to $181.7 million, despite relatively flat volumes. The net income was $2.68 per share was down from $3.56 per share a year ago, being impacted by unfavorable forex movements. For the full fiscal year, Taro earned $12.62 per share, up from $11.31 a year earlier. Revenue was $950.8 million, up by 10.2% year-over-year despite a 5% volume decline. The company ended the fiscal fourth quarter with $1.2 billion in cash and marketable securities. Shares of TARO are up by 2.39% this morning.

We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn’t mean that they don’t have occasional colossal losses; they do (like Ackman’s recent Valeant losses). However, it is still good idea to keep an eye on hedge fund activity (see the details here). With this in mind, as the latest round of 13F filings has just ended, let’s examine the smart money sentiment towards Taro Pharmaceutical Industries Ltd. (NYSE:TARO).

Taro Pharmaceutical Industries Ltd. (NYSE:TARO) was in 21 hedge funds’ portfolios at the end of the first quarter of 2016. TARO shareholders have witnessed an increase in enthusiasm from smart money of late. There were 19 hedge funds in our database with TARO positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as American Campus Communities, Inc. (NYSE:ACC), China Southern Airlines Co Ltd (ADR) (NYSE:ZNH), and Allegion PLC (NYSE:ALLE) to gather more data points.

Follow Taro Pharmaceutical Industries Ltd
Trade (TAROF) Now!

Of the funds tracked by Insider Monkey, Renaissance Technologies, founded by Jim Simons, holds the biggest position in Taro Pharmaceutical Industries Ltd. (NYSE:TARO). Renaissance Technologies has a $70.4 million position in the stock, comprising 0.1% of its 13F portfolio. On Renaissance Technologies’ heels is Jonathan Savitz of Greywolf Capital Management, with a $35.1 million position; his fund has 6% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors with similar optimism include Robert B. Gillam’s McKinley Capital Management, Anders Hallberg and Carl Bennet’s HealthInvest Partners AB, and Tim David’s Guardian Point Capital.

On the next page we’ll look at some funds that took up positions in TARO during Q1, as well as compare the stock to a handful of others with similar market caps.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!