What Makes Tyler Technologies (TYL) a Prospective Buy?

Artisan Partners, an investment management company, released its “Artisan Global Discovery Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund’s Investor Class APFDX returned 8.40%, Advisor Class APDDX posted a return of 8.37%, and Institutional Class APHDX returned 8.48%, compared to an 8.20% return for the MSCI All Country World Index. Broad-based security selection contributions across health care, consumer staples, industrials, and consumer discretionary drove the fund's outperformance in the quarter. This was partially offset by information technology. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Artisan Global Discovery Fund highlighted stocks like Tyler Technologies, Inc. (NYSE:TYL), in the first quarter 2024 investor letter. Tyler Technologies, Inc. (NYSE:TYL) offers integrated information management solutions and services for the public sector. The one-month return of Tyler Technologies, Inc. (NYSE:TYL) was 5.79%, and its shares gained 24.14% of their value over the last 52 weeks. On July 2, 2024, Tyler Technologies, Inc. (NYSE:TYL) stock closed at $509.00 per share with a market capitalization of $21.73 billion.

Artisan Global Discovery Fund stated the following regarding Tyler Technologies, Inc. (NYSE:TYL) in its Q1 2024 investor letter:

"Notable adds in the quarter included Redcare Pharmacy, MIPS and Tyler Technologies, Inc. (NYSE:TYL). Tyler Technologies provides end-to-end information management solutions and services for local government offices throughout the US, Canada, Puerto Rico and the UK. We believe the company will generate durable growth given its defensive end markets, the durability of its cloud subscription transition (it just started transitioning legacy on-premises customers in 2019) and the transformative acquisition of NIC (a leading digital government solutions and payments company) that allows for increased cross-sell opportunities. Earnings results were thesis affirming as the company guided for revenue growth tracking toward our expectations and provided evidence of an inflection in free cash flow generation."

A close-up of a computer monitor, displaying complex information management software.

Tyler Technologies, Inc. (NYSE:TYL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Tyler Technologies, Inc. (NYSE:TYL) at the end of the first quarter which was 29 in the previous quarter. Total revenues of Tyler Technologies, Inc. (NYSE:TYL) for the first quarter were $512.4 million, representing an 8.6% increase compared to the previous year quarter. While we acknowledge the potential of Tyler Technologies, Inc. (NYSE:TYL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed Tyler Technologies, Inc. (NYSE:TYL) in another article and shared The Brown Capital Management Mid Company Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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