1. Novo Nordisk A/S (NYSE:NVO)
Simons’ Stake Value: $2.02 billion
Percentage of Jim Simons’ 13F Portfolio: 2.52%
Number of Hedge Fund Holders: 20
Novo Nordisk A/S (NYSE:NVO) is a multinational pharmaceutical and biotechnology company based in Denmark that focuses on the provision of diabetes medication and hormone replacement therapy (HRT). The company has a market capitalization of $176.71 billion and is ranked first on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies.
According to the recent 13F Filings, Jim Simons’ Renaissance Technologies holds more than 24 million shares of Novo Nordisk A/S (NYSE:NVO), amounting to $2.02 billion in worth and accounting for 2.52% of the fund’s total investment portfolio. By the end of the second quarter of 2021, 20 hedge funds out of the 873 tracked by Insider Monkey held stakes in Novo Nordisk A/S (NYSE:NVO), worth $3.56 billion, down from 23 hedge funds in the preceding quarter with a total stake value of approximately $2.92 billion.
The company released its quarterly earnings report for the second quarter of 2021 on August 4, with reported earnings per share at $0.84, crossing estimates by $0.08. Additionally, the company reported revenues of $5.26 billion, beating estimated revenues by $89.35 million.
Out of the hedge funds being tracked by Insider Monkey’s database, Washington-based investment firm, Fisher Asset Management is one of the leading shareholders in Novo Nordisk A/S (NYSE:NVO) with over 16 million shares worth more than $1.34 billion.
In the Q2 2021 investor letter of LRT Capital, the fund mentioned Novo Nordisk A/S (NYSE:NVO). Here is what the fund had to say:
“Novo Nordisk is the global leader in insulin, which is, sadly, a growing business as more and more people around the world suffer from diabetes. Millions of people need daily injections of insulin to stay alive50, a number that, unfortunately, is likely to continue to grow by millions more in the coming decade. It may seem at first glance that insulin should be a commoditized business, after all, it was discovered and synthesized over a hundred years ago, but nothing could be further from the truth. There are many types of insulin and Novo Nordisk has spent billions on R&D over the years to develop new products. On February 11th, the company reported favorable results from a phase-3 trial of Semaglutide, a drug that is currently used for Type 2 diabetes treatment. The study evaluated the use of Semaglutide for weight loss treatment in non-diabetic patients and found a significant impact on weight loss for patients receiving Semaglutide vs. the placebo control group. If Semaglutide is approved for weight loss treatment, we expect it will be meaningfully accretive to the company’s bottom line.
The company’s proprietary product line supports returns on invested capital of over 40%, and while sales growth is relatively slow (+6% annualized CAGR over the past decade), the company’s shares trade at a reasonable valuation of only 22x forward earnings. For a company with an extremely predictable business, high returns on capital, and an easily forecastable future, we believe this to be highly attractive.
Shares are +34.43% year-to-date and +40.92% over the past twelve months.”
You can also take a look at 10 Best Undervalued Dividend Stocks to Buy Now and 10 Stocks that Released Solid Quarterly Earnings
