Is The Ryland Group, Inc. (RYL) A Good Stock To Buy?

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Since The Ryland Group, Inc. (NYSE:RYL) has faced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there exists a select few fund managers that elected to cut their entire stakes heading into Q4. It’s worth mentioning that Greg Poole’s Echo Street Capital Management cut the biggest investment of the “upper crust” of funds watched by Insider Monkey, worth an estimated $20.9 million in stock. Eric Mindich’s fund, Eton Park Capital, also sold off its stock, about $13.3 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 5 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to The Ryland Group, Inc. (NYSE:RYL). We will take a look at Lexington Realty Trust (NYSE:LXP), GATX Corporation (NYSE:GMT), Balchem Corporation (NASDAQ:BCPC), and AllianceBernstein Income Fund Inc. (NYSE:ACG). This group of stocks’ market caps are similar to RYL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LXP 20 100488 -2
GMT 14 188026 -3
BCPC 6 77455 -1
ACG 6 39613 1

As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $101 million. That figure was $535 million in RYL’s case. Lexington Realty Trust (NYSE:LXP) is the most popular stock in this table. On the other hand Balchem Corporation (NASDAQ:BCPC) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks The Ryland Group, Inc. (NYSE:RYL) 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.

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