Is Allscripts Healthcare Solutions Inc (MDRX) a Good Buy?

Seeing as Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) has experienced falling interest from the smart money, we can see that there lies a certain “tier” of money managers who sold off their entire stakes in the third quarter. Intriguingly, Jim Simons’ Renaissance Technologies said goodbye to the biggest stake of all the hedgies watched by Insider Monkey, totaling close to $19.8 million in call options., and Israel Englander’s Millennium Management was right behind this move, as the fund cut about $4.1 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 4 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to Allscripts Healthcare Solutions Inc (NASDAQ:MDRX). These stocks are CBL & Associates Properties, Inc. (NYSE:CBL), PRA Health Sciences Inc (NASDAQ:PRAH), Criteo SA (ADR) (NASDAQ:CRTO), and Medidata Solutions Inc (NASDAQ:MDSO). This group of stocks’ market valuations are closest to MDRX’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CBL 21 137715 3
PRAH 11 37629 0
CRTO 20 264518 -1
MDSO 17 72845 0

As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $128 million. That figure was $686 million in MDRX’s case. CBL & Associates Properties, Inc. (NYSE:CBL) is the most popular stock in this table. On the other hand PRA Health Sciences Inc (NASDAQ:PRAH) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.