The fallout from the Takata airbag scandal has struck again, with Toyota Motor Corporation (ADR) (NYSE:TM) now calling back around another 1.6 million additional vehicles in the United States. Earlier in the month, Takata declared that 35 to 40 million of its U.S. airbag inflators were defective, up more than double from its previous declaration. Takata’s inflators use ammonium nitrate, which have been shown to be unstable if exposed to humidity and heat. The instability can cause ruptures that might send metal parts flying into the cabin. At least 11 people have died and 100 people have been injured partly due to the defect. The Takata scandal has caused several automobile makers to take considerable write-downs in their most recent round of earnings releases and has tarnished Japan’s sterling quality reputation. Toyota Motor Corp (ADR) (NYSE:TM) will replace the airbag inflator at no additional cost to the consumer. With this in mind, let’s take a closer look at how hedge funds and other institutional investors have been trading Toyota Motor Corp.
Toyota Motor Corporation (ADR) (NYSE:TM) has seen a decrease in support from the world’s most elite money managers of late. TM was in 12 hedge funds’ portfolios at the end of the first quarter of 2016, down from 13 hedge funds in our database with TM holdings at the end of the previous quarter. At the end of this article we will also compare TM to other stocks including The Walt Disney Company (NYSE:DIS), Intel Corporation (NASDAQ:INTC), and Philip Morris International Inc. (NYSE:PM) to get a better sense of its popularity.
At the moment there are dozens of methods market participants can use to grade stocks. A couple of the less utilized methods are hedge fund and insider trading activity. We have shown that, historically, those who follow the best picks of the top investment managers can outpace their index-focused peers by a healthy amount (see the details here).
Now, let’s take a glance at the key action regarding Toyota Motor Corporation (ADR) (NYSE:TM).