RPD.NASDAQRapid7, INC

Form 4: Rapid7 CEO Corey E. Thomas Reports Share Transactions

Sentiment:

SEC Form 4 Filing


CEO Corey E. Thomas reports disposition of shares to cover tax obligations and acquisitions through an employee stock purchase plan.

Summary

  • Corey E. Thomas, CEO of Rapid7, Inc., filed a Form 4 detailing changes in beneficial ownership.
  • On May 15, 2025, 12,963 shares of common stock were disposed of to cover tax withholding obligations at a price of $23.55 per share.
  • Thomas also reported owning 606,306 shares directly, 218,748 shares indirectly through Thomas Family Holdings LLC, and 30,000 shares indirectly through a trust.
  • Additionally, 557 shares were acquired under the Rapid7, Inc. 2015 Employee Stock Purchase Plan on March 14, 2025.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing reflects routine transactions related to executive compensation and tax obligations, with no indication of significant positive or negative developments.

Positives

  • The CEO's participation in the Employee Stock Purchase Plan indicates confidence in the company's future.
  • The CEO directly owns a significant number of shares.

Negatives

  • The disposition of shares to cover tax obligations could be perceived negatively, although it's a common practice.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Comparison to Industry Standards

  • Form 4 filings are a standard regulatory requirement for publicly traded companies, ensuring transparency in insider trading activities.
  • Similar filings are common among executives at comparable cybersecurity firms, such as CrowdStrike, Palo Alto Networks, and Okta, when they engage in transactions involving their company's stock.

Stakeholder Impact

  • The transactions have a minimal direct impact on stakeholders, as they are related to standard executive compensation practices.

Key Dates

DateDescription
February 2, 2021Date of a previous grant of restricted stock units to the Reporting Person.
February 15, 2022Date of a previous grant of restricted stock units to the Reporting Person.
February 15, 2023Date of a previous grant of restricted stock units to the Reporting Person.
February 15, 2024Date of a previous grant of restricted stock units to the Reporting Person.
February 14, 2025Date of a previous grant of restricted stock units to the Reporting Person.
March 14, 2025Date of acquisition of shares under the Rapid7, Inc. 2015 Employee Stock Purchase Plan.
May 15, 2025Date of the transaction involving the disposition of shares for tax obligations.
May 19, 2025Date of signature on the Form 4 filing.

Keywords

Form 4, Rapid7, CEO, Corey E. Thomas, Beneficial Ownership, Share Transactions, Employee Stock Purchase Plan, Tax Withholding

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