Is Novo Nordisk A/S (ADR) (NYSE:NVO) ready to raly soon? Money managers are turning less bullish. The number of long hedge fund positions retreated by 1 lately.
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Keeping this in mind, let’s take a peek at the latest action encompassing Novo Nordisk A/S (ADR) (NYSE:NVO).
How are hedge funds trading Novo Nordisk A/S (ADR) (NYSE:NVO)?
At the end of the fourth quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of -8% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings considerably.
Of the funds we track, Ken Fisher’s Fisher Asset Management had the biggest position in Novo Nordisk A/S (ADR) (NYSE:NVO), worth close to $435 million, comprising 1.2% of its total 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $381 million position; 0% of its 13F portfolio is allocated to the stock. Other peers that hold long positions include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Tom Gayner’s Markel Gayner Asset Management and D. E. Shaw’s D E Shaw.
Since Novo Nordisk A/S (ADR) (NYSE:NVO) has faced a declination in interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedgies that slashed their positions entirely in Q4. Interestingly, Peter J. Eichler Jr.’s Aletheia Research and Management dropped the largest investment of all the hedgies we watch, totaling an estimated $14 million in stock.. Louis Navellier’s fund, Navellier & Associates, also dropped its stock, about $0 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 1 funds in Q4.
Insider trading activity in Novo Nordisk A/S (ADR) (NYSE:NVO)
Bullish insider trading is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time period, Novo Nordisk A/S (ADR) (NYSE:NVO) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Novo Nordisk A/S (ADR) (NYSE:NVO). These stocks are Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), Allergan, Inc. (NYSE:AGN), Forest Laboratories, Inc. (NYSE:FRX), Pharmacyclics, Inc. (NASDAQ:PCYC), and Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY). This group of stocks are in the drug manufacturers – other industry and their market caps match NVO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) | 46 | 0 | 0 |
| Allergan, Inc. (NYSE:AGN) | 30 | 0 | 11 |
| Forest Laboratories, Inc. (NYSE:FRX) | 29 | 0 | 6 |
| Pharmacyclics, Inc. (NASDAQ:PCYC) | 19 | 0 | 7 |
| Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) | 10 | 0 | 0 |
With the results shown by our studies, retail investors must always monitor hedge fund and insider trading activity, and Novo Nordisk A/S (ADR) (NYSE:NVO) applies perfectly to this mantra.
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