Thermo Fisher Scientific Inc. (NYSE:TMO)’s richest investors are very, very bullish. Here’s what we mean by that.
To the average investor, there are plenty of indicators investors can use to monitor publicly traded companies. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best hedge fund managers can outclass the broader indices by a very impressive amount (see just how much).
Just as crucial, optimistic insider trading activity is another way to analyze the stock market universe. Obviously, there are plenty of stimuli for a bullish insider to sell shares of his or her company, but just one, very obvious reason why they would buy. Many academic studies have demonstrated the market-beating potential of this strategy if “monkeys” know what to do (learn more here).
Furthermore, we’re going to discuss the latest info about Thermo Fisher Scientific Inc. (NYSE:TMO).
What have hedge funds been doing with Thermo Fisher Scientific Inc. (NYSE:TMO)?
Heading into Q3, a total of 65 of the hedge funds we track were long in this stock, a change of 30% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings significantly.
When using filings from the hedgies we track, Andreas Halvorsen’s Viking Global had the largest position in Thermo Fisher Scientific Inc. (NYSE:TMO), worth close to $735.4 million, comprising 4.1% of its total 13F portfolio. Sitting at the No. 2 spot is Glenview Capital, managed by Larry Robbins, which held a $720.1 million position; the fund has 6.6% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Boykin Curry’s Eagle Capital Management, John Paulson’s Paulson & Co and Daniel S. Och’s OZ Management.
As industrywide interest increased, specific money managers have jumped into Thermo Fisher Scientific Inc. (NYSE:TMO) headfirst. Viking Global, managed by Andreas Halvorsen, assembled the biggest position in Thermo Fisher Scientific Inc. (NYSE:TMO). Viking Global had 735.4 million invested in the company at the end of the quarter. Larry Robbins’s Glenview Capital also initiated a $720.1 million position during the quarter. The other funds with new positions in the stock are Boykin Curry’s Eagle Capital Management, John Paulson’s Paulson & Co, and Daniel S. Och’s OZ Management.
What have insiders been doing with Thermo Fisher Scientific Inc. (NYSE:TMO)?
Insider buying made by high-level executives is best served when the company in question has experienced transactions within the past 180 days. Over the last half-year time frame, Thermo Fisher Scientific Inc. (NYSE:TMO) has seen zero unique insiders purchasing, and 10 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 Thermo Fisher Scientific Inc. (NYSE:TMO). These stocks are Mettler-Toledo International Inc. (NYSE:MTD), Laboratory Corp. of America Holdings (NYSE:LH), Quest Diagnostics Inc (NYSE:DGX), Life Technologies Corp. (NASDAQ:LIFE), and Agilent Technologies Inc. (NYSE:A). This group of stocks belong to the medical laboratories & research industry and their market caps resemble TMO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Mettler-Toledo International Inc. (NYSE:MTD) | 15 | 0 | 7 |
| Laboratory Corp. of America Holdings (NYSE:LH) | 20 | 0 | 8 |
| Quest Diagnostics Inc (NYSE:DGX) | 33 | 0 | 7 |
| Life Technologies Corp. (NASDAQ:LIFE) | 49 | 0 | 2 |
| Agilent Technologies Inc. (NYSE:A) | 47 | 0 | 5 |
Using the results demonstrated by Insider Monkey’s studies, average investors should always track hedge fund and insider trading activity, and Thermo Fisher Scientific Inc. (NYSE:TMO) applies perfectly to this mantra.
