Is Computer Programs & Systems, Inc. (CPSI) A Good Stock To Buy?

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Due to the fact that Computer Programs & Systems, Inc. (NASDAQ:CPSI) has experienced bearish sentiment from the aggregate hedge fund industry, logic holds that there was a specific group of hedge funds who sold off their positions entirely last quarter. It’s worth mentioning that Matthew Tewksbury’s Stevens Capital Management got rid of the biggest stake of the 700 funds followed by Insider Monkey, worth an estimated $0.6 million in stock, and Alec Litowitz and Ross Laser’s Magnetar Capital was right behind this move, as the fund said goodbye to about $0.3 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Computer Programs & Systems, Inc. (NASDAQ:CPSI). We will take a look at Heritage Commerce Corp. (NASDAQ:HTBK), Trevena Inc (NASDAQ:TRVN), Covenant Transportation Group, Inc. (NASDAQ:CVTI), and NQ Mobile Inc (ADR) (NYSE:NQ). All of these stocks’ market caps match CPSI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HTBK 7 11636 -1
TRVN 10 32645 0
CVTI 8 18452 3
NQ 8 10417 1

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $37 million in CPSI’s case. Trevena Inc (NASDAQ:TRVN) is the most popular stock in this table. On the other hand Heritage Commerce Corp. (NASDAQ:HTBK) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Computer Programs & Systems, Inc. (NASDAQ:CPSI) is even less popular than HTBK. 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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