Lender Processing Services, Inc. (NYSE:LPS) investors should pay attention to a decrease in activity from the world’s largest hedge funds lately. LPS was in 31 hedge funds’ portfolio at the end of September. There were 31 hedge funds in hedge fund experts Insider Monkey’s database with LPS holdings at the end of the previous quarter.
According to a recent press release, “a leading provider of integrated technology, data and analytics to the mortgage and real estate industries, announced today that the company will have received Federal Trade Commission (FTC) approval of its previously announced acquisition by Fidelity National Financial, Inc. (NYSE: FNF), a leading provider of title insurance and transaction services to the real estate and mortgage industries, upon the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.”
Consequently, it’s important to take a glance at the latest action regarding Lender Processing Services, Inc. (NYSE:LPS).
Hedge fund activity in Lender Processing Services, Inc. (NYSE:LPS)
At Q3′s end, a total of 31 of the hedge funds Insider Monkey tracks were bullish in this stock, a change of 0% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings considerably.
According to hedge fund experts at Insider Monkey, Matthew Halbower’s Pentwater Capital Management had the largest position in Lender Processing Services, Inc. (NYSE:LPS), worth close to $141.7 million, corresponding to 3.9 percent of its total 13F portfolio. The second largest stake is held by Alpine Associates, led by Robert Emil Zoellner, holding a $88.9 million position; 3.6 percent of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism comprise Thomas Steyer’s Farallon Capital, Cliff Asness’s AQR Capital Management and D. E. Shaw’s D E Shaw.
Since Lender Processing Services, Inc. (NYSE:LPS) has experienced a declination in interest from hedge fund managers, it’s easy to see that there is a sect of fund managers who sold off their positions entirely heading into Q4. At the top of the heap, Jonathon Jacobson’s Highfields Capital Management sold off the biggest stake of all the hedgies tracked by Insider Monkey, totaling an estimated $90.1 million in stock. Eric Mindich’s fund, Eton Park Capital, also dropped its stock, about $40.4 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Lender Processing Services, Inc. (NYSE:LPS)?
Insider buying is at its handiest when the primary stock in question has seen transactions within the past six months. Over the last six-month time period, Lender Processing Services, Inc. (NYSE:LPS) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Lender Processing Services, Inc. (NYSE:LPS). These stocks are HMS Holdings Corp. (NASDAQ:HMSY), Ritchie Bros. Auctioneers (USA) (NYSE:RBA), Deluxe Corporation (NYSE:DLX), Portfolio Recovery Associates, Inc. (NASDAQ:PRAA), and RR Donnelley & Sons Co (NASDAQ:RRD). All of these stocks are in the business services industry and their market caps resemble LPS’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|HMS Holdings Corp. (NASDAQ:HMSY)||18||0||4|
|Ritchie Bros. Auctioneers (USA) (NYSE:RBA)||13||0||0|
|Deluxe Corporation (NYSE:DLX)||19||0||10|
|Portfolio Recovery Associates, Inc. (NASDAQ:PRAA)||15||0||2|
|RR Donnelley & Sons Co (NASDAQ:RRD)||26||0||2|
Lender Processing Services, Inc. was the most popular business services industry stock at the end of Q3 among the hedge funds Insider Monkey tracks.