Like most pharma companies, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)’s stock price generally trades akin to the actions of a roller coaster. So is it on its way up this time, or down?
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Equally as necessary, optimistic insider trading sentiment is a second way to analyze the marketplace. Just as you’d expect, there are plenty of stimuli for an upper level exec to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this method if shareholders know what to do (learn more here).
Keeping this in mind, let’s analyze the recent info for Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA).
Hedge fund activity in Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)
Heading into Q3, a total of 43 of the hedge funds we track were long in this stock, a change of -9% from the first quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes meaningfully.
Since Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there were a few hedge funds that slashed their entire stakes at the end of the second quarter. At the top of the heap, Mark Kingdon’s Kingdon Capital said goodbye to the biggest position of all the hedgies we watch, valued at an estimated $15.9 million in call options., and Daniel Arbess of Xerion was right behind this move, as the fund dumped about $15.5 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 4 funds at the end of the second quarter.
What have insiders been doing with Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)?
Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has experienced 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 Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). These stocks are Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY), Pharmacyclics, Inc. (NASDAQ:PCYC), Forest Laboratories, Inc. (NYSE:FRX), Novo Nordisk A/S (ADR) (NYSE:NVO), and Allergan, Inc. (NYSE:AGN). All of these stocks are in the drug manufacturers – other industry and their market caps are closest to TEVA’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) | 8 | 0 | 0 |
| Pharmacyclics, Inc. (NASDAQ:PCYC) | 27 | 0 | 5 |
| Forest Laboratories, Inc. (NYSE:FRX) | 30 | 0 | 2 |
| Novo Nordisk A/S (ADR) (NYSE:NVO) | 17 | 0 | 0 |
| Allergan, Inc. (NYSE:AGN) | 42 | 0 | 4 |
Using the returns shown by the previously mentioned analyses, regular investors must always pay attention to hedge fund and insider trading sentiment, and Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) shareholders fit into this picture quite nicely.
