Form 4: Rapid7 CFO's Routine Tax Withholding Transaction
Insider Transaction Report
Rapid7's Chief Financial Officer, Timothy M. Adams, reported a routine disposition of 9,225 shares of common stock to cover tax obligations related to vested restricted stock units.
Summary
- Timothy M. Adams, Chief Financial Officer of Rapid7, Inc. (RPD), reported a transaction on August 15, 2025.
- The transaction involved the disposition of 9,225 shares of Rapid7 common stock.
- These shares were withheld by Rapid7 to satisfy Mr. Adams' tax withholding obligation upon the vesting of previously granted restricted stock units (RSUs).
- The shares were valued at $21.27 per share for the purpose of this transaction.
- Following this transaction, Mr. Adams directly beneficially owns 196,088 shares of Rapid7 common stock.
Sentiment
Score: 5
Explanation: The sentiment is neutral as this is a routine, non-discretionary transaction for tax purposes, which is a common occurrence for executives receiving equity compensation.
Future Outlook
The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.
Industry Context
This Form 4 filing is a routine disclosure of an insider transaction, specifically the withholding of shares to cover tax liabilities upon the vesting of equity awards. Such transactions are common across all industries for executives receiving stock-based compensation and do not typically reflect a change in management's outlook on the company's prospects.
Management Changes
| Role | Previous Person | New Person | Effective Date | Reason |
|---|---|---|---|---|
| Chief Financial Officer | NA | Timothy M. Adams | NA | NA |
Stakeholder Impact
- Shareholders: Minimal direct impact as this is a routine, non-discretionary transaction for tax purposes and does not reflect a change in the insider's investment thesis or company fundamentals.
Key Dates
| Date | Description |
|---|---|
| January 3, 2022 | Date of a restricted stock unit grant to the Reporting Person. |
| February 15, 2023 | Date of a restricted stock unit grant to the Reporting Person. |
| February 15, 2024 | Date of a restricted stock unit grant to the Reporting Person. |
| February 14, 2025 | Date of a restricted stock unit grant to the Reporting Person. |
| August 15, 2025 | Date of the reported transaction where shares were withheld for tax obligations upon RSU vesting. |
| August 19, 2025 | Date the Form 4 was signed by the Attorney-in-Fact. |
Recommendation
holdThis filing details a routine, non-discretionary transaction by a company insider to cover tax obligations related to vested equity awards. It does not provide any new information regarding the company's financial performance, strategic direction, or operational health that would warrant a change in investment recommendation. Investors should consider broader market conditions and Rapid7's fundamental performance rather than this standard insider filing.
Keywords
Rapid7, RPD, SEC Form 4, Insider Transaction, Stock Disposition, Tax Withholding, Restricted Stock Units, CFO
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