Berkshire Partners’ Subsidiary Stockbridge Partners Surges Stake in RealPage, Inc. (RP)

A Berkshire Partners’ subsidiary Stockbridge Partners, managed by Robert J. Small, has revealed, in a new filing, surging its position in RealPage, Inc. (NASDAQ:RP). The stake is passive by nature and contains around 4.05 million shares, equal to 5.2% of the company’s common stock. Earlier, Stockbridge reported ownership of approximately 2.16 million shares of RealPage.

Matthew A. Weatherbie‘s Weatherbie Capital is another major shareholder of RealPage, Inc. (NASDAQ:RP), in its latest 13F filing disclosing a $26.94 million stake, which amasses 1.15 million shares. Israel Englander‘s Millennium Management has added the company to its equity portfolio during the last quarter of 2013, and currently owns 135,400 shares, valued at $3.17 million.

For the previous year, RealPage, Inc. (NASDAQ:RP), an enterprise software company specialized in the rental housing business, reported a revenue of $377 million, up by 17% in comparison with 2012. The net income of the company also went up to $0.59 per diluted share, an increase of over 25% on the year.

However, the stock of RealPage, Inc. (NASDAQ:RP) has declined by 21% since the beginning of the year, and trails a P/E of around 68.xx, much higher than the Application Software industry average of 35.xx. At the same time, the stock sports a forward P/E of approximately 22, and a Price/Earnings to Growth ratio of 1.40. On average, the recommendation for the company is ‘Overweight’ with the mean target price being at slightly below $22.

Stockbridge Partners is a fund focused on marketable securities with an equity portfolio worth over $1.40 billion, diversified among several sectors, with Technology and Services stocks amassing the largest portions. TransDigm Group Incorporated (NYSE:TDG) represents the largest holding, in terms of value, with 1.05 million shares worth $168.30 million, amassing 12% of the equity portfolio. Among other notable positions is LPL Financial Holdings Inc (NASDAQ:LPLA), and Mattress Firm Holding Corp (NASDAQ:MFRM), in which the fund owns 3.01 million and 2.75 million shares, worth $141.68 million and $118.28 million respectively.

Disclosure: none

Recommended Reading:

Red Mountain Capital Boost Activist Stake in Destination XL Group Inc (DXLG) to 11.7%

Mario Gabelli Reveales Latest Moves In Its Equity Portfolio

Daniel Gold, QVT Financial Increase Stake In CytRx Corporation (CYTR) & Further Reduce Exposure To Pacific Alliance China Land Limited (PACL)