Is Tyler Technologies, Inc. (NYSE:TYL) ready to raly soon? The smart money is taking an optimistic view. The number of long hedge fund bets improved by 4 in recent months.
At the moment, there are plenty of methods market participants can use to analyze publicly traded companies. Some of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can outperform the market by a significant margin (see just how much).
Just as beneficial, optimistic insider trading activity is a second way to break down the investments you’re interested in. As the old adage goes: there are plenty of stimuli for an insider to downsize shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this strategy if shareholders know where to look (learn more here).
With these “truths” under our belt, it’s important to take a look at the key action regarding Tyler Technologies, Inc. (NYSE:TYL).
How are hedge funds trading Tyler Technologies, Inc. (NYSE:TYL)?
In preparation for this year, a total of 9 of the hedge funds we track were long in this stock, a change of 80% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings significantly.
When looking at the hedgies we track, GAMCO Investors, managed by Mario Gabelli, holds the most valuable position in Tyler Technologies, Inc. (NYSE:TYL). GAMCO Investors has a $17.7 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $12.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Cliff Asness’s AQR Capital Management, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Millennium Management, managed by Israel Englander, initiated the most valuable position in Tyler Technologies, Inc. (NYSE:TYL). Millennium Management had 1.8 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $1.7 million position during the quarter. The other funds with brand new TYL positions are Mike Vranos’s Ellington, D. E. Shaw’s D E Shaw, and John Overdeck and David Siegel’s Two Sigma Advisors.
How have insiders been trading Tyler Technologies, Inc. (NYSE:TYL)?
Insider trading activity, especially when it’s bullish, is particularly usable when the primary stock in question has experienced transactions within the past half-year. Over the last half-year time period, Tyler Technologies, Inc. (NYSE:TYL) has seen 1 unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Tyler Technologies, Inc. (NYSE:TYL). These stocks are National Instruments Corp (NASDAQ:NATI), Concur Technologies, Inc. (NASDAQ:CNQR), PTC Inc (NASDAQ:PMTC), Mentor Graphics Corp (NASDAQ:MENT), and ACI Worldwide Inc (NASDAQ:ACIW). This group of stocks are the members of the technical & system software industry and their market caps are closest to TYL’s market cap.