Here's Why This Israeli Investment Giant Is Betting $834 Million on Teva Stock

Israel-based Phoenix Financial disclosed a substantial buy of Teva Pharmaceutical Industries Limited in its SEC filing released Monday, adding shares worth an estimated $62.1 million during the third quarter.

What Happened

Phoenix Financial Ltd. reported a significant increase in its position in Teva Pharmaceutical Industries Limited (NYSE:TEVA) during the third quarter, acquiring 3.5 million additional shares, according to its Form 13F filed with the Securities and Exchange Commission on Monday.

What Else to Know

The fund's Teva position now represents 6.8% of 13F reportable AUM.

Top holdings after the filing:

• NASDAQ:ACWI: $897.6 million (7.3% of AUM)
• NYSE:TEVA: $834.2 million (6.8% of AUM)
• NASDAQ:MSFT: $698.4 million (5.7% of AUM)
• NYSEMKT:RSP: $670.9 million (5.5% of AUM)
• NASDAQ:NVDA: $598.4 million (4.9% of AUM)

As of Monday, Teva shares were priced at $20.42, up 11% over the past year, but underperforming the S&P 500's nearly 20% gain over the same period.

Company Overview

Company Snapshot

Teva Pharmaceutical Industries Limited is a leading global pharmaceutical manufacturer with a diverse product range and a strong presence in both generic and specialty drug markets. The company leverages its integrated supply chain and R&D capabilities to deliver cost-effective medicines at scale. Teva's strategic focus on complex generics and specialty therapies supports its competitive position in the evolving healthcare landscape. It operates a vertically integrated business model, developing, manufacturing, and distributing pharmaceuticals to maximize cost efficiency and scale across North America, Europe, and global markets.

Foolish Take

Phoenix's big push into Teva made the pharmaceutical giant the investment firm's second-largest U.S.-listed holding, representing 6.8% of its reportable AUM, behind only the iShares MSCI ACWI ETF.

The timing signals renewed institutional conviction in Israel’s flagship drugmaker as it stabilizes under CEO Richard Francis’s turnaround plan, which emphasizes debt reduction, cost savings, and a pivot toward biosimilars and complex generics. In the second quarter, Teva reported $4.2 billion in revenue, marking the 10th consecutive quarter of year-over-year revenue growth. Francis touted the quarter as a "testament to the exceptional strength of [Teva's] innovative portfolio, which remains the primary engine driving revenue growth."

The Teva buy is also notable given that in the same quarter, Phoenix, which manages over $160 billion in assets, fully exited Tower Semiconductor, whose shares have skyrocketed 99% over the past year. For long-term investors, the Teva buy reinforces confidence in the company’s turnaround and its potential to deliver steady cash generation through 2026, particularly as global demand for affordable medicines grows.

Glossary

13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
AUM (Assets Under Management): The total market value of investments managed by a fund or institution.
Quarterly average price: The average share price over a specific quarter, used for estimating transaction values.
Stake: The total ownership or investment a fund holds in a particular company.
Vertically integrated: A business model where a company controls multiple stages of its supply chain, from production to distribution.
Active pharmaceutical ingredients (APIs): The biologically active components in drugs responsible for their intended effects.
Generic medicines: Drugs equivalent to brand-name products in dosage and effectiveness, typically sold at lower prices after patent expiration.
Specialty medicines: High-cost, complex drugs often used to treat chronic or rare conditions.
Biopharmaceutical products: Medical drugs produced using biotechnology, often involving living cells or organisms.
Form 13F: The official SEC document used by institutional managers to report their equity holdings.
TTM: The 12-month period ending with the most recent quarterly report.
Complex generics: Generic drugs that are harder to develop or manufacture due to formulation or delivery complexities.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.