What’s a smart GlaxoSmithKline plc (ADR) (NYSE:GSK) investor to do?
In the financial world, there are many methods market participants can use to track the equity markets. Some of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can beat the broader indices by a healthy amount (see just how much).
Just as key, optimistic insider trading sentiment is a second way to analyze the stock market universe. As the old adage goes: there are many stimuli for a bullish insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this method if “monkeys” know where to look (learn more here).
What’s more, it’s important to discuss the newest info for GlaxoSmithKline plc (ADR) (NYSE:GSK).
Hedge fund activity in GlaxoSmithKline plc (ADR) (NYSE:GSK)
In preparation for the third quarter, a total of 21 of the hedge funds we track held long positions in this stock, a change of 17% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings considerably.
When using filings from the hedgies we track, Fisher Asset Management, managed by Ken Fisher, holds the most valuable position in GlaxoSmithKline plc (ADR) (NYSE:GSK). Fisher Asset Management has a $557.1 million position in the stock, comprising 1.4% of its 13F portfolio. On Fisher Asset Management’s heels is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which held a $510.5 million position; the fund has 3.8% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Bill Miller’s Legg Mason Capital Management, Warren Buffett’s Berkshire Hathaway and Jim Simons’s Renaissance Technologies.
Consequently, particular hedge funds have jumped into GlaxoSmithKline plc (ADR) (NYSE:GSK) headfirst. Fisher Asset Management, managed by Ken Fisher, established the largest position in GlaxoSmithKline plc (ADR) (NYSE:GSK). Fisher Asset Management had 557.1 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $510.5 million position during the quarter. The following funds were also among the new GSK investors: Bill Miller’s Legg Mason Capital Management, Warren Buffett’s Berkshire Hathaway, and Jim Simons’s Renaissance Technologies.
How are insiders trading GlaxoSmithKline plc (ADR) (NYSE:GSK)?
Bullish insider trading is most useful when the company we’re looking at has seen transactions within the past 180 days. Over the latest half-year time period, GlaxoSmithKline plc (ADR) (NYSE:GSK) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to GlaxoSmithKline plc (ADR) (NYSE:GSK). These stocks are AbbVie Inc (NYSE:ABBV), Bristol Myers Squibb Co. (NYSE:BMY), Novartis AG (ADR) (NYSE:NVS), Sanofi SA (ADR) (NYSE:SNY), and Merck & Co., Inc. (NYSE:MRK). All of these stocks are in the drug manufacturers – major industry and their market caps are closest to GSK’s market cap.