Rapid7 (NASDAQ:RPD) Hits New 1-Year Low – Should You Sell?

Rapid7, Inc. (NASDAQ:RPD)’s share price hit a new 52-week low during trading on Monday . The company traded as low as $13.97 and last traded at $14.2840, with a volume of 1450122 shares changing hands. The stock had previously closed at $14.40.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on RPD shares. Mizuho decreased their target price on Rapid7 from $27.00 to $25.00 and set a “neutral” rating on the stock in a research report on Friday, August 8th. Raymond James Financial lowered their target price on shares of Rapid7 from $40.00 to $30.00 and set an “outperform” rating on the stock in a research note on Friday, August 8th. Truist Financial dropped their target price on shares of Rapid7 from $22.00 to $18.00 and set a “hold” rating for the company in a report on Wednesday, November 5th. Canaccord Genuity Group decreased their price target on shares of Rapid7 from $32.00 to $27.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Piper Sandler lowered their price target on shares of Rapid7 from $30.00 to $19.00 and set a “neutral” rating on the stock in a research report on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $22.78.

Rapid7 Stock Performance

The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 9.84. The firm has a fifty day moving average price of $18.90 and a 200 day moving average price of $21.41. The firm has a market cap of $933.10 million, a PE ratio of 34.66 and a beta of 0.94.

Rapid7 (NASDAQ:RPD) last released its quarterly earnings data on Tuesday, November 4th. The technology company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.12. The firm had revenue of $217.96 million during the quarter, compared to analysts’ expectations of $216.14 million. Rapid7 had a net margin of 3.41% and a return on equity of 149.12%. Rapid7’s revenue was up 1.5% compared to the same quarter last year. During the same period last year, the business earned $0.66 earnings per share. 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, equities research analysts expect that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rapid7 news, CAO Scott M. Murphy sold 1,370 shares of the stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $20.25, for a total value of $27,742.50. Following the sale, the chief accounting officer owned 27,592 shares of the company’s stock, valued at $558,738. This trade represents a 4.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Jana Partners Management, Lp acquired 250,000 shares of the stock in a transaction dated Wednesday, August 13th. The shares were bought at an average cost of $21.26 per share, with a total value of $5,315,000.00. Following the completion of the transaction, the director owned 6,518,604 shares of the company’s stock, valued at approximately $138,585,521.04. This represents a 3.99% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 2.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Teacher Retirement System of Texas grew its position in shares of Rapid7 by 24.1% in the 1st quarter. Teacher Retirement System of Texas now owns 54,091 shares of the technology company’s stock valued at $1,434,000 after buying an additional 10,487 shares during the last quarter. Penserra Capital Management LLC lifted its position in Rapid7 by 45.3% in the second quarter. Penserra Capital Management LLC now owns 2,731,192 shares of the technology company’s stock valued at $63,172,000 after acquiring an additional 851,108 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Rapid7 by 112.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,286,300 shares of the technology company’s stock valued at $60,610,000 after acquiring an additional 1,209,856 shares in the last quarter. Principal Financial Group Inc. grew its holdings in shares of Rapid7 by 1.1% during the first quarter. Principal Financial Group Inc. now owns 54,915 shares of the technology company’s stock worth $1,456,000 after purchasing an additional 609 shares during the last quarter. Finally, DDD Partners LLC acquired a new stake in shares of Rapid7 during the second quarter worth about $846,000. Institutional investors and hedge funds own 95.66% of the company’s stock.

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.