Wall Street Zen Downgrades Rapid7 (NASDAQ:RPD) to Hold

Rapid7 (NASDAQ:RPD) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

Several other research firms also recently commented on RPD. JPMorgan Chase & Co. reduced their price target on shares of Rapid7 from $22.00 to $20.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 5th. Canaccord Genuity Group dropped their target price on shares of Rapid7 from $32.00 to $27.00 and set a “buy” rating on the stock in a research note on Wednesday. Citigroup reduced their target price on shares of Rapid7 from $35.00 to $30.00 and set a “buy” rating on the stock in a research report on Monday, August 18th. Susquehanna set a $15.00 price target on Rapid7 in a report on Thursday. Finally, Piper Sandler dropped their price objective on Rapid7 from $30.00 to $19.00 and set a “neutral” rating on the stock in a research note on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $22.78.

Rapid7 Price Performance

RPD opened at $14.20 on Friday. The business has a fifty day moving average of $18.90 and a 200 day moving average of $21.41. Rapid7 has a 52-week low of $13.97 and a 52-week high of $44.48. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 9.84. The stock has a market cap of $929.83 million, a P/E ratio of 34.63 and a beta of 0.94.

Rapid7 (NASDAQ:RPD) last released its earnings results on Tuesday, November 4th. The technology company reported $0.57 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.12. Rapid7 had a return on equity of 149.12% and a net margin of 3.41%.The business had revenue of $217.96 million for the quarter, compared to analyst estimates of $216.14 million. During the same quarter last year, the firm posted $0.66 earnings per share. The business’s revenue was up 1.5% compared to the same quarter last year. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS. Q4 2025 guidance at 0.370-0.44 EPS. As a group, sell-side analysts anticipate that Rapid7 will post 0.35 EPS for the current year.

Insider Buying and Selling

In related news, CAO Scott M. Murphy sold 1,370 shares of Rapid7 stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $20.25, for a total transaction of $27,742.50. Following the transaction, the chief accounting officer directly owned 27,592 shares of the company’s stock, valued at $558,738. This trade represents a 4.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Jana Partners Management, Lp acquired 250,000 shares of Rapid7 stock in a transaction that occurred on Wednesday, August 13th. The stock was acquired at an average cost of $21.26 per share, with a total value of $5,315,000.00. Following the purchase, the director directly owned 6,518,604 shares of the company’s stock, valued at $138,585,521.04. This represents a 3.99% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 2.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rapid7

A number of hedge funds have recently made changes to their positions in RPD. Principal Financial Group Inc. raised its stake in shares of Rapid7 by 1.1% in the first quarter. Principal Financial Group Inc. now owns 54,915 shares of the technology company’s stock valued at $1,456,000 after acquiring an additional 609 shares in the last quarter. Y.D. More Investments Ltd grew its stake in Rapid7 by 12.0% during the 1st quarter. Y.D. More Investments Ltd now owns 5,839 shares of the technology company’s stock worth $171,000 after purchasing an additional 625 shares in the last quarter. Prudential Financial Inc. increased its holdings in Rapid7 by 8.8% during the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock worth $197,000 after purchasing an additional 690 shares during the period. Wealth Enhancement Advisory Services LLC increased its holdings in Rapid7 by 6.3% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 12,427 shares of the technology company’s stock worth $221,000 after purchasing an additional 732 shares during the period. Finally, Nordea Investment Management AB raised its position in Rapid7 by 1.0% in the 2nd quarter. Nordea Investment Management AB now owns 78,294 shares of the technology company’s stock valued at $1,808,000 after purchasing an additional 753 shares in the last quarter. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

About Rapid7

Rapid7, Inc provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions.