Is RealPage (RP) Stock a Buy For 2021?

Alex Smith
·3 min read

Brown Capital Management Mid Company Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 16.55% (inst. class) for the quarter, underperforming its benchmark, the Russell Midcap Growth Index which returned 19.02% in the same quarter. You should check out Brown Capital Management's top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, the fund highlighted a few stocks and RealPage Inc. (NASDAQ:RP) is one of them. RealPage Inc. (NASDAQ:RP) is a software company. In the last three months, RealPage Inc. (NASDAQ:RP) stock gained 26% and on March 1st it had a closing price of $87.12. Here is what the fund said:

"RealPage is a leading provider of software and data analytics to the real estate industry. The company’s on-demand software platform addresses the entire lifecycle of rental real estate through four distinct product families: property management, resident services, leasing and marketing, and asset optimization. RealPage provides a technology platform used by owners and managers of rental properties. Tenants may pay their rent or submit a maintenance request using RealPage’s software. The company also keeps a database of real-time lease transactions allowing it to forecast where markets are heading. Private-equity firm Thoma Bravo struck a deal to acquire RealPage for $9.6 billion, in one of the largest recent leveraged buyouts. Thoma Bravo is paying $88.75 per share for the company, a 31% premium to RealPage’s closing price on Friday, Dec. 18, 2020. The company has until Wednesday, Feb. 3, 2021, to solicit higher competing offers for a break-up fee equivalent to 1% of the transaction value. We are patiently awaiting the outcome of that process while simultaneously reviewing how we will deploy proceeds from the company’s sale."

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In January, we published an article revealing that Argosy Investors is bearish on RealPage Inc. (NASDAQ:RP) stock.

In Q3 2020, the number of bullish hedge fund positions on RealPage Inc. (NASDAQ:RP) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that RealPage Inc. (NASDAQ:RP) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.