Do You Think Rapid7 (RPD) is Attractively Valued?

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. The fund delivered negative returns in the third quarter. The portfolio recorded impressive gains at the beginning of the quarter. In contrast, there was a disappointing selloff at the end of the quarter. The Russell 2000 Growth Index was 0.26% up compared to a 4.60% decline for its counterpart, the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the third-quarter letter, Carillon Tower Advisers discussed stocks like Rapid7, Inc. (NASDAQ:RPD). Headquartered in Boston, Massachusetts, Rapid7, Inc. (NASDAQ:RPD) is a software company that provides cyber security solutions. On October 27, 2022, Rapid7, Inc. (NASDAQ:RPD) stock closed at $45.73 per share. One-month return of Rapid7, Inc. (NASDAQ:RPD) was 6.60% and its shares lost 64.48% of their value over the last 52 weeks. Rapid7, Inc. (NASDAQ:RPD) has a market capitalization of $2.684 billion.

Carillon Tower Advisers made the following comment about Rapid7, Inc. (NASDAQ:RPD) in its Q3 2022 investor letter:

“Rapid7, Inc. (NASDAQ:RPD) is a security software vendor that has been growing its mix of revenue from its stable core segments toward faster-growing cloud security segments. Despite putting up a healthy quarterly update, management cited increased macroeconomic pressure that has elongated sales cycles. We remain convinced that in an overall slower macroeconomic backdrop, security software budgets remain one of the most resilient areas. Furthermore, with a now significantly more attractive valuation, Rapid7 remains an attractive take-out candidate for a larger vendor.”

Rapid7, Inc. (NASDAQ:RPD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Rapid7, Inc. (NASDAQ:RPD) at the end of the second quarter which was 20 in the previous quarter.

We discussed Rapid7, Inc. (NASDAQ:RPD) in another article and shared the list of best cybersecurity stocks to buy. In addition, please check out our hedge fund investor letters Q3 2022 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.