In today’s marketplace, there are a multitude of methods shareholders can use to track publicly traded companies. A pair of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can beat the broader indices by a significant amount (see just how much).
Just as necessary, bullish insider trading activity is another way to analyze the stock market universe. There are a variety of motivations for an executive to sell shares of his or her company, but just one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this tactic if you understand what to do (learn more here).
Keeping this in mind, let’s study the recent info surrounding Danaher Corporation (NYSE:DHR).
What does the smart money think about Danaher Corporation (NYSE:DHR)?
In preparation for the third quarter, a total of 43 of the hedge funds we track were bullish in this stock, a change of 8% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings significantly.
According to our 13F database, Viking Global, managed by Andreas Halvorsen, holds the biggest position in Danaher Corporation (NYSE:DHR). Viking Global has a $773.4 million position in the stock, comprising 4.3% of its 13F portfolio. On Viking Global’s heels is Generation Investment Management, managed by David Blood and Al Gore, which held a $352.4 million position; 6.8% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Doug Silverman and Alexander Klabin’s Senator Investment Group, Phill Gross and Robert Atchinson’s Adage Capital Management and Ken Griffin’s Citadel Investment Group.
Consequently, certain bigger names have been driving this bullishness. Viking Global, managed by Andreas Halvorsen, created the largest position in Danaher Corporation (NYSE:DHR). Viking Global had 773.4 million invested in the company at the end of the quarter. David Blood and Al Gore’s Generation Investment Management also initiated a $352.4 million position during the quarter. The other funds with brand new DHR positions are Doug Silverman and Alexander Klabin’s Senator Investment Group, Phill Gross and Robert Atchinson’s Adage Capital Management, and Ken Griffin’s Citadel Investment Group.
What do corporate executives and insiders think about Danaher Corporation (NYSE:DHR)?
Insider buying made by high-level executives is most useful when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time period, Danaher Corporation (NYSE:DHR) has seen zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Danaher Corporation (NYSE:DHR). These stocks are Siemens AG (ADR) (NYSE:SI), Cummins Inc. (NYSE:CMI), Illinois Tool Works Inc. (NYSE:ITW), Koninklijke Philips Electronics NV (ADR) (NYSE:PHG), and Honeywell International Inc. (NYSE:HON). This group of stocks are the members of the diversified machinery industry and their market caps resemble DHR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Siemens AG (ADR) (NYSE:SI) | 10 | 0 | 0 |
| Cummins Inc. (NYSE:CMI) | 33 | 0 | 5 |
| Illinois Tool Works Inc. (NYSE:ITW) | 24 | 0 | 10 |
| Koninklijke Philips Electronics NV (ADR) (NYSE:PHG) | 8 | 0 | 0 |
| Honeywell International Inc. (NYSE:HON) | 34 | 1 | 10 |
Using the results explained by Insider Monkey’s tactics, average investors must always track hedge fund and insider trading sentiment, and Danaher Corporation (NYSE:DHR) shareholders fit into this picture quite nicely.
