Hedge Funds Are Dumping Roper Technologies Inc (ROP)

Due to the fact that Roper Technologies Inc (NYSE:ROP) has gone through bearish sentiment from hedge fund managers, it’s safe to say that there is a sect of hedgies that elected to cut their positions entirely in the third quarter. Interestingly, Jim Simons’ Renaissance Technologies, one of the biggest hedge funds in the world, dropped the biggest investment of the 700 funds tracked by Insider Monkey, comprising about $41.4 million in stock, and Bruce Kovner’s Caxton Associates LP was right behind this move, as the fund sold off about $20.5 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Roper Technologies Inc (NYSE:ROP). We will take a look at ArcelorMittal (ADR) (NYSE:MT), Micron Technology, Inc. (NASDAQ:MU), NetEase, Inc (ADR) (NASDAQ:NTES), and Workday Inc (NYSE:WDAY). This group of stocks’ market valuations match ROP’s market valuation.

As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $1.62 billion. That figure was $490 million in ROP’s case. Micron Technology, Inc. (NASDAQ:MU) is the most popular stock in this table. On the other hand ArcelorMittal (ADR) (NYSE:MT) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Roper Technologies Inc (NYSE:ROP) is even less popular than MT. 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