Is Black Knight Financial Services Inc (BKFS) A Good Stock To Buy?

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We already know that not all hedge funds are bullish on the stock and some hedge funds actually said goodbye to their positions entirely. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP said goodbye to the largest position of the 700 funds followed by Insider Monkey, comprising about $0.5 million in Black Knight Financial Services Inc (NYSE:BKFS) stock, and Scott Fine and Peter Richards’s Empire Capital Management was right behind this move, as the fund sold off about $0.4 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Black Knight Financial Services Inc (NYSE:BKFS). We will take a look at Flowserve Corporation (NYSE:FLS), Jacobs Engineering Group Inc (NYSE:JEC), Zillow Inc (NASDAQ:Z), and MarketAxess Holdings Inc. (NASDAQ:MKTX). All of these stocks’ market caps are closest to BKFS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FLS 26 402485 -6
JEC 17 147916 -1
Z 26 614342 0
MKTX 20 123477 0

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $322 million. That figure was a meager $16 million in BKFS’s case. Flowserve Corporation (NYSE:FLS) is the most popular stock in this table. On the other hand Jacobs Engineering Group Inc (NYSE:JEC) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Black Knight Financial Services Inc (NYSE:BKFS) is even less popular than JEC. 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

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