Will Roper Technologies Inc. (ROP) burn these hedge funds?


As the market is dragged down by short-term sentiment influenced by the accommodating US interest rate environment, virus news and stimulus spending, many smart investors are starting to be cautious about the current uptrend since March 2020 and to hedge or reduce many of their long positions. Some fund managers bet on the Dow Jones reaching 40,000 to generate solid returns. However, as we know, large investors usually buy stocks with strong fundamentals that can generate gains in both bullish and bearish markets, which is why we believe we can profit from emulating them. In this article, we’ll take a look at the sense of smart money that surrounds Roper Technologies Inc. (NYSE:POR).

East Roper Technologies Inc. (NYSE:POR) a safe investment right now? Investors who did know were less and less confident. The number of long bets on hedge funds has fallen by 1 in recent months. Roper Technologies Inc. (NYSE:POR) appeared in 41 hedge fund portfolios at the end of June. The all-time high for this statistic is 50. Our calculations have also shown that ROP is not among the 30 most popular stocks among hedge funds (click for Q2 ranking). There were 42 hedge funds in our database with ROP holdings at the end of March.

Today, shareholders have several indicators to rate listed companies. A pair of lesser-known indicators are hedge funds and insider trading. Our researchers have shown that, historically, those who follow the best choices of elite fund managers can outperform larger indices by a very impressive margin (see details here). Additionally, our monthly newsletter’s long stock picks portfolio has returned 185.4% since March 2017 (through August 2021) and has beaten the S&P 500 Index by over 79 percentage points. You can download a sample issue of this newsletter on our website.

Charles Akre Akre Capital Management

Charles Akre of Akre Capital Management

At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, we like undervalued growth stocks that are positive for EBITDA, so we are looking at pitches like this emerging biotechnology stocks. We go through lists like the 10 best EV stocks to choose the next Tesla which will offer a 10x return. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to equity pitches at hedge fund conferences. You can subscribe to our free daily newsletter at our home page. Now we’ll check out the new hedge fund action on Roper Technologies Inc. (NYSE:POR).

Do hedge funds think ROP is a good stock to buy now?

At the end of the second quarter, 41 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -2% from the previous quarter. The graph below shows the number of hedge funds with a bullish position in ROP over the last 24 quarters. So let’s take a look at which hedge funds were among the top stock holders and which hedge funds were making big moves.

Specifically, Akre Capital Management was the largest shareholder in Roper Technologies Inc. (NYSE: ROP), with a stake worth $ 782.9 million reported in late June. After Akre Capital Management, Citadel Investment Group, which has amassed a stake valued at $ 229.4 million. Echo Street Capital Management, DE Shaw and Bristol Gate Capital Partners were also very fond of the stock, becoming one of the firm’s largest hedge fund holders. In terms of portfolio weights assigned to each position Lansing Management assigned the largest weight to Roper Technologies Inc. (NYSE: ROP), approximately 12.64% of its 13F portfolio. Akre Capital Management is also relatively very bullish on the stock, designating 4.82% of its 13F equity portfolio at ROP.

Given that Roper Technologies Inc. (NYSE: ROP) has been facing bearish sentiment from smart money, logic dictates that there is a specific group of hedge funds that are completely abandoning their positions in the end. of the second trimester. It should be mentioned that Jason McDougall 11 capital partners sold the biggest investment of all hedges monitored by Insider Monkey, comprising nearly $ 14.9 million in shares, and Michael Gelband’s ExodusPoint Capital was right behind that move, with the fund dropping around $ 3.4 million . These transactions are intriguing to say the least, as total hedge fund interest fell by 1 fund at the end of the second quarter.

Let’s also look at hedge fund activity in other stocks similar to Roper Technologies Inc. (NYSE: ROP). We’ll take a look at Palantir Technologies Inc. (NYSE:PLTR), Lululemon Athletica inc. (NASDAQ:LULU), Thomson Reuters Corporation (NYSE:SORTING), Johnson Controls International plc (NYSE:JCI), EOG Resources Inc (NYSE:EOG), TC Energy Corporation (NYSE:TRP) and Align Technology, Inc. (NASDAQ:ALGN). The market caps of this group of stocks resemble the market cap of ROP.

[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position PLTR, 26.1361219, -6 LULU, 46.952983.5 TRI, 27.354844, -1 JCI, 39.1270005, -2 EOG, 35,411137.5 TRP, 22,118166, -3 ALGN, 57.2689837.8 Medium, 36.1022599,0.9 [/table]

See the table here if you have formatting problems.

As you can see, these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $ 1023 million. That figure was $ 1,570 million in the case of ROP. Align Technology, Inc. (NASDAQ:ALGN) is the most popular action in this table. On the other hand, TC Energy Corporation (NYSE:TRP) is the least popular with only 22 bullish hedge fund positions. Roper Technologies Inc. (NYSE: ROP) is not the most popular stock in this group, but hedge fund interest is still above average. Our overall hedge fund sentiment score for ROP is 55.7. Stocks with a higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal, but we prefer to spend our time researching the stocks on which hedge funds are accumulating. Our calculations have shown that top 5 most popular stocks among hedge funds, returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 21.8% in 2021 through October 11 and again beat the market by 4.4 percentage points. Unfortunately, ROP was not as popular as these 5 stocks and the hedge funds that bet on ROP were disappointed as the stock has returned -3.6% since the end of June (through 10/11) and has underperformed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds, as many of these stocks have already outperformed the market since 2019.

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Disclosure: none. This article originally appeared on Monkey initiate.

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