Here’s Why Repay Holdings Corporation (RPAY) Declined in Q1
Baron Funds, an investment management company, released its “Baron Small Cap Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 9.44% up in the first quarter outperforming the Russell 2000 Growth Index and the S&P 500 Index which returned 6.07% and 7.50% respectively. During the quarter, the fund benefitted from positive stock selection in almost all sectors on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Small Cap Fund highlighted stocks like Repay Holdings Corporation (NASDAQ:RPAY) in the first quarter 2023 investor letter. Headquartered in Atlanta, Georgia, Repay Holdings Corporation (NASDAQ:RPAY) is a payments technology company. On June 12, 2023, Repay Holdings Corporation (NASDAQ:RPAY) stock closed at $7.37 per share. One-month return of Repay Holdings Corporation (NASDAQ:RPAY) was 10.83%, and its shares lost 34.08% of their value over the last 52 weeks. Repay Holdings Corporation (NASDAQ:RPAY) has a market capitalization of $683.536 million.
Baron Small Cap Fund made the following comment about Repay Holdings Corporation (NASDAQ:RPAY) in its first quarter 2023 investor letter:
"Shares of payment processing solutions provider Repay Holdings Corporation (NASDAQ:RPAY) fell this quarter. Although the company reported strong fourth quarter results with 17% organic gross profit growth and 29% EBITDA growth, its 2023 financial guidance missed Street expectations. We believe Repay’s weaker outlook reflects macroeconomic uncertainty, the divestiture of a non-core business, tough comparisons in the B2B segment due to biennial political ad spending at its media clients, and, perhaps, some conservatism on the company’s part. We are disappointed that growth has slowed in the core consumer segment but are hopeful that results will return to mid-teens growth. We think the shares are silly cheap, at less than seven times depressed EBITDA, for a well-managed business with unique offerings and a scalable operating platform."
Repay Holdings Corporation (NASDAQ:RPAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Repay Holdings Corporation (NASDAQ:RPAY) at the end of first quarter 2023 which was 22 in the previous quarter.
We discussed Repay Holdings Corporation (NASDAQ:RPAY) in another article and shared Baron Funds' views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
