Repay Holdings Corporation (RPAY) Failed to Meet Estimates in the Third Quarter
Baron Funds, an investment management company, released its “Baron Small Cap Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 3.64% (Institutional Shares), underperforming the Russell 2000 Growth Index, which was 0.24% up, and outperforming the S&P 500 Index, which was 4.88% down. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds discussed stocks like Repay Holdings Corporation (NASDAQ:RPAY) in the Q3 2022 investor letter. Headquartered in Atlanta, Georgia, Repay Holdings Corporation (NASDAQ:RPAY) is a financial technology company. On October 31, 2022, Repay Holdings Corporation (NASDAQ:RPAY) stock closed at $6.09 per share. One-month return of Repay Holdings Corporation (NASDAQ:RPAY) was -15.53%, and its shares lost 71.40% of their value over the last 52 weeks. Repay Holdings Corporation (NASDAQ:RPAY) has a market capitalization of $556.218 million.
Here is what Baron Funds specifically said about Repay Holdings Corporation (NASDAQ:RPAY) in its Q3 2022 investor letter:
"Repay Holdings Corporation (NASDAQ:RPAY), a payments processor, fell after reporting results that missed estimates. Management had anticipated an acceleration in its personal loans line of business that didn’t materialize, and organic growth and profits rose only 10%, less than expected. Payments stocks have acted poorly over concerns of cyclicality and competitive differentiation. This has weighed on Repay, which now trades below 10 times our estimate for next year’s EBITDA for a business that is a leader in its niches, has solid organic growth, and posts 40% margins. We added to our position during the quarter but have been wrong so far."
Repay Holdings Corporation (NASDAQ:RPAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Repay Holdings Corporation (NASDAQ:RPAY) at the end of the second quarter which was 14 in the previous quarter.
We discussed Repay Holdings Corporation (NASDAQ:RPAY) in another article and shared the list of fintech stocks getting hammered amid economic weakness. 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.
