Is Sanofi SA (ADR) (SNY) a Good Stock To Buy?

Judging by the fact that Sanofi SA (ADR) (NYSE:SNY) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there exists a select few hedge funds that slashed their positions entirely during the third quarter. Interestingly, Steven Boyd’s Armistice Capital cut the biggest position of the 700 funds tracked by Insider Monkey, comprising about $5.8 million in stock, and Paul Cantor, Joseph Weiss, and Will Wurm’s Beech Hill Partners was right behind this move, as the fund dropped about $3.5 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Sanofi SA (ADR) (NYSE:SNY) but similarly valued. We will take a look at Kraft Heinz Co (NASDAQ:KHC), NTT Docomo Inc (ADR) (NYSE:DCM), 3M Co (NYSE:MMM), and McDonald’s Corporation (NYSE:MCD). All of these stocks’ market caps match SNY’s market cap.

As you can see these stocks had an average of 38 hedge funds with bullish positions and the average amount invested in these stocks was $8.66 billion. That figure was $716 million in SNY’s case. McDonald’s Corporation (NYSE:MCD) is the most popular stock in this table. On the other hand NTT Docomo Inc (ADR) (NYSE:DCM) is the least popular one with only six bullish hedge fund positions. Sanofi SA (ADR) (NYSE:SNY) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MCD might be a better candidate to consider a long position.

Disclosure: None