Is Sanofi SA (ADR) (SNY) Going to Burn These Hedge Funds?

If you’re reading this, chances are you’re a Sanofi SA (ADR) (NYSE:SNY) investor, or are considering a position. The following data is crucial to consider.

To the average investor, there are plenty of gauges investors can use to track Mr. Market. Some of the most useful are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can beat the broader indices by a healthy margin (see just how much).

Equally as crucial, positive insider trading sentiment is another way to look at the financial markets. Obviously, there are a number of motivations for an executive to get rid of shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the impressive potential of this method if you understand where to look (learn more here).

Furthermore, we’re going to discuss the newest info surrounding Sanofi SA (ADR) (NYSE:SNY).

Hedge fund activity in Sanofi SA (ADR) (NYSE:SNY)

In preparation for the third quarter, a total of 52 of the hedge funds we track were bullish in this stock, a change of -2% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their stakes substantially.

According to our 13F database, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in Sanofi SA (ADR) (NYSE:SNY). Fisher Asset Management has a $659.8 million position in the stock, comprising 1.7% of its 13F portfolio. Sitting at the No. 2 spot is Berkshire Hathaway, managed by Warren Buffett, which held a $209.3 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Peter Rathjens Bruce Clarke and John Campbell’s Arrowstreet Capital, David Abrams’s Abrams Capital Management and Martin D. Sass’s MD Sass.

Due to the fact Sanofi SA (ADR) (NYSE:SNY) has faced bearish sentiment from the entirety of the hedge funds we track, we can see that there were a few money managers who sold off their full holdings heading into Q2. At the top of the heap, Dmitry Balyasny’s Balyasny Asset Management said goodbye to the biggest stake of the “upper crust” of funds we watch, valued at close to $19 million in stock, and Daniel S. Och of OZ Management was right behind this move, as the fund said goodbye to about $11.7 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 1 funds heading into Q2.

What have insiders been doing with Sanofi SA (ADR) (NYSE:SNY)?

Insider buying made by high-level executives is at its handiest when the company we’re looking at has seen transactions within the past 180 days. Over the last 180-day time period, Sanofi SA (ADR) (NYSE:SNY) has experienced zero unique insiders buying, and zero 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 Sanofi SA (ADR) (NYSE:SNY). These stocks are Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), Novartis AG (ADR) (NYSE:NVS), GlaxoSmithKline plc (ADR) (NYSE:GSK), and Merck & Co., Inc. (NYSE:MRK). All of these stocks are in the drug manufacturers – major industry and their market caps are closest to SNY’s market cap.

Using the results explained by the previously mentioned analyses, average investors should always track hedge fund and insider trading activity, and Sanofi SA (ADR) (NYSE:SNY) is an important part of this process.

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