Is now the time to buy GBST Holdings Limited?

GBST Holdings Limited (ASX:GBT) has taken a tumble this morning.

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Financial software business GBST Holdings Limited (ASX: GBT) tumbled 7% to $5.90 in morning trade today despite releasing no specific news to the market other than a positive announcement earlier in the week.

I suspect today's selling is primarily investors taking some profits off the table after the market re-rated the stock upward after the business posted some strong results for the first half of the 2015 financial year.

Several substantial holders have been selling down their holdings in the stock recently, including the founder and chairman John Puttick, and specialist Australian equity managers Perpetual Limited (ASX: PPT) and Australian Ethical Investment Limited (ASX: AEF).

This is not something to necessarily worry long-term holders of the business as it is not unusual for small to mid-cap fund managers to reduce their holdings in stocks that have run as hard as GBST (up 57%) over the last 3 months.

The founder John Puttick also has a consistent history of reducing his large holding in the company, which is not a great surprise given his 30-plus years at GBST alone.

The business would appear to retain a strong outlook and this week announced its latest success in the UK market with a deal to sell its Composer platform to a provider of UK pension products named Just Retirement.

Selling for $5.90 after this morning's 7% fall GBST is now offering much better value for small-cap investors attracted to its overseas earnings, recurring revenues, strong balance sheet and sticky client base.

Motley Fool contributor Tom Richardson owns shares of Australian Ethical Investment Ltd. and GBST Holdings Limited. You can find Tom on Twitter@tommyr345 The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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