Should Novo Nordisk A/S (ADR) (NYSE:NVO) investors track the following data?
In the 21st century investor’s toolkit, there are a multitude of metrics investors can use to track Mr. Market. A couple of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite hedge fund managers can outperform their index-focused peers by a superb margin (see just how much).
Equally as crucial, bullish insider trading activity is a second way to look at the marketplace. Just as you’d expect, there are many motivations for an insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the market-beating potential of this strategy if “monkeys” know where to look (learn more here).
Furthermore, let’s analyze the latest info about Novo Nordisk A/S (ADR) (NYSE:NVO).
Hedge fund activity in Novo Nordisk A/S (ADR) (NYSE:NVO)
In preparation for the third quarter, a total of 17 of the hedge funds we track held long positions in this stock, a change of 31% from the first quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings considerably.
Out of the hedge funds we follow, Renaissance Technologies, managed by Jim Simons, holds the largest position in Novo Nordisk A/S (ADR) (NYSE:NVO). Renaissance Technologies has a $433.1 million position in the stock, comprising 1.1% of its 13F portfolio. The second largest stake is held by Fisher Asset Management, managed by Ken Fisher, which held a $417.1 million position; 1.1% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Tom Gayner’s Markel Gayner Asset Management and William B. Gray’s Orbis Investment Management.
Now, certain bigger names were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, established the biggest position in Novo Nordisk A/S (ADR) (NYSE:NVO). Renaissance Technologies had 433.1 million invested in the company at the end of the quarter. Ken Fisher’s Fisher Asset Management also made a $417.1 million investment in the stock during the quarter. The following funds were also among the new NVO investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Tom Gayner’s Markel Gayner Asset Management, and William B. Gray’s Orbis Investment Management.
Insider trading activity in Novo Nordisk A/S (ADR) (NYSE:NVO)
Insider buying made by high-level executives is most useful when the company we’re looking at has seen transactions within the past half-year. Over the last half-year time period, Novo Nordisk A/S (ADR) (NYSE:NVO) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Novo Nordisk A/S (ADR) (NYSE:NVO). These stocks are Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY), Pharmacyclics, Inc. (NASDAQ:PCYC), Forest Laboratories, Inc. (NYSE:FRX), Allergan, Inc. (NYSE:AGN), and Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). This group of stocks belong to the drug manufacturers – other industry and their market caps are closest to NVO’s market cap.