Do Hedge Funds Love Tyler Technologies, Inc. (TYL)?

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Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that said goodbye to their entire stakes in the stock during the third quarter. It’s worth mentioning that Benjamin A. Smith’s Laurion Capital Management said goodbye to the biggest stake of all the investors followed by Insider Monkey, totaling an estimated $11.6 million in stock. James Dondero’s fund, Highland Capital Management, also cut its stock, about $4.8 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Tyler Technologies, Inc. (NYSE:TYL) but similarly valued. These stocks are Steel Dynamics, Inc. (NASDAQ:STLD), Commscope Holding Company Inc (NASDAQ:COMM), Owens Corning (NYSE:OC), and Sensata Technologies Holding N.V. (NYSE:ST). This group of stocks’ market caps are closest to TYL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
STLD 33 634258 2
COMM 52 2887006 5
OC 35 1197532 1
ST 27 1392748 -1

As you can see these stocks had an average of 37 hedge funds with bullish positions and the average amount invested in these stocks was $1.53 billion. That figure was $245 million in TYL’s case. Commscope Holding Company Inc (NASDAQ:COMM) is the most popular stock in this table. On the other hand Sensata Technologies Holding N.V. (NYSE:ST) is the least popular one with only 27 bullish hedge fund positions. Compared to these stocks Tyler Technologies, Inc. (NYSE:TYL) is even less popular than ST. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None

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