How Ultimate Software Group, Inc. (ULTI) Stocks Up Against Similarly Valued Stocks

As industrywide interest jumped, some big names have jumped into The Ultimate Software Group, Inc. (NASDAQ:ULTI) headfirst. Echo Street Capital Management established the biggest position in The Ultimate Software Group, Inc. (NASDAQ:ULTI) which had $9.5 million invested in the company at the end of the quarter.  Act II Capital also made a $6.8 million investment in the stock during the quarter. The other funds with brand new ULTI positions are Andrew Sandler’s Sandler Capital Management, Ken Griffin’s Citadel Investment Group, and Noam Gottesman’s GLG Partners.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as The Ultimate Software Group, Inc. (NASDAQ:ULTI) but similarly valued. We will take a look at Apollo Global Management LLC (NYSE:APO), FMC Technologies, Inc. (NYSE:FTI), Tyler Technologies, Inc. (NYSE:TYL), and Steel Dynamics, Inc. (NASDAQ:STLD). This group of stocks’ market valuations are similar to ULTI’s market valuation.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $543 million. That figure was $155 million in ULTI’s case. FMC Technologies, Inc. (NYSE:FTI) is the most popular stock in this table. On the other hand Tyler Technologies, Inc. (NYSE:TYL) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks The Ultimate Software Group, Inc. (NASDAQ:ULTI) is even less popular than TYL. 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