Tyler Technologies, Inc. (NYSE:TYL) has experienced a decrease in hedge fund interest of late.
In the 21st century investor’s toolkit, there are a multitude of methods investors can use to analyze the equity markets. A pair of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce the S&P 500 by a very impressive amount (see just how much).
Just as integral, positive insider trading sentiment is another way to parse down the stock market universe. As the old adage goes: there are lots of motivations for a corporate insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this method if piggybackers know what to do (learn more here).
Consequently, let’s take a glance at the latest action regarding Tyler Technologies, Inc. (NYSE:TYL).
What have hedge funds been doing with Tyler Technologies, Inc. (NYSE:TYL)?
At the end of the first quarter, a total of 9 of the hedge funds we track were long in this stock, a change of -10% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings considerably.
Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the biggest position in Tyler Technologies, Inc. (NYSE:TYL). Renaissance Technologies has a $22.5 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is GAMCO Investors, managed by Mario Gabelli, which held a $22.1 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedge funds that hold long positions include Ken Griffin’s Citadel Investment Group, Cliff Asness’s AQR Capital Management and Israel Englander’s Millennium Management.
Because Tyler Technologies, Inc. (NYSE:TYL) has experienced declining sentiment from the aggregate hedge fund industry, we can see that there is a sect of funds who sold off their positions entirely at the end of the first quarter. Intriguingly, D. E. Shaw’s D E Shaw dumped the largest investment of the “upper crust” of funds we track, valued at an estimated $0.4 million in stock.. Matthew Tewksbury’s fund, Stevens Capital Management, also dropped its stock, about $0.4 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 1 funds at the end of the first quarter.
What do corporate executives and insiders think about Tyler Technologies, Inc. (NYSE:TYL)?
Insider buying is most useful when the primary stock in question has seen 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 7 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). All of these stocks are in the technical & system software industry and their market caps are closest to TYL’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|National Instruments Corp (NASDAQ:NATI)||8||1||5|
|Concur Technologies, Inc. (NASDAQ:CNQR)||10||0||13|
|PTC Inc (NASDAQ:PMTC)||9||0||8|
|Mentor Graphics Corp (NASDAQ:MENT)||18||0||6|
|ACI Worldwide Inc (NASDAQ:ACIW)||12||0||2|
With the returns exhibited by Insider Monkey’s strategies, retail investors must always monitor hedge fund and insider trading sentiment, and Tyler Technologies, Inc. (NYSE:TYL) shareholders fit into this picture quite nicely.