Hedge Funds Are Selling LegacyTexas Financial Group Inc (LTXB)

Judging by the fact that LegacyTexas Financial Group Inc (NASDAQ:LTXB) has witnessed a declination in interest from the aggregate hedge fund industry, it’s safe to say that there exists a select few funds that decided to sell off their full holdings last quarter. It’s worth mentioning that Israel Englander’s Millennium Management cut the largest stake of the 700 funds monitored by Insider Monkey, totaling about $4.3 million in call options, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund sold off about $0.8 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest fell by 1 funds last quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as LegacyTexas Financial Group Inc (NASDAQ:LTXB) but similarly valued. These stocks are Synchronoss Technologies, Inc. (NASDAQ:SNCR), Greatbatch Inc (NYSE:GB), Concordia Healthcare Corp (NASDAQ:CXRX), and Fidelity & Guaranty Life (NYSE:FGL). This group of stocks’ market caps resemble LTXB’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $131 million, compared to $73 million in LTXB’s case. Synchronoss Technologies, Inc. (NASDAQ:SNCR) is the most popular stock in this table. On the other hand, Fidelity & Guaranty Life (NYSE:FGL) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks, LegacyTexas Financial Group Inc (NASDAQ:LTXB) is even less popular than FGL. Considering that hedge funds aren’t fond of this stock in relation to other companies covered 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.