Why Sanofi SA (ADR) (SNY) Is Trending on Wednesday

Since Sanofi SA (ADR) (NYSE:SNY) has witnessed falling interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of hedgies who were dropping their positions entirely by the end of the first quarter. It’s worth mentioning that Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cut the largest position of all the hedgies tracked by Insider Monkey, comprising an estimated $47 million in stock. Michael Messner’s fund, Seminole Capital, also dumped its stock, about $26.2 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 1 funds by the end of the first quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Sanofi SA (ADR) (NYSE:SNY) but similarly valued. These stocks are Mastercard Inc (NYSE:MA), NIKE, Inc. (NYSE:NKE), BP plc (ADR) (NYSE:BP), and 3M Co (NYSE:MMM). This group of stocks’ market valuations match SNY’s market valuation.

As you can see these stocks had an average of 54 hedge funds with bullish positions and the average amount invested in these stocks was $2.97 billion. That figure was $814 million in SNY’s case. Mastercard Inc (NYSE:MA) is the most popular stock in this table. On the other hand BP plc (ADR) (NYSE:BP) is the least popular one with only 34 bullish hedge fund positions. Compared to these stocks Sanofi SA (ADR) (NYSE:SNY) is even less popular than BP. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None