Rapid7 (NASDAQ:RPD) Shares Gap Down on Analyst Downgrade

Rapid7, Inc. (NASDAQ:RPD)’s stock price gapped down prior to trading on Tuesday after Scotiabank lowered their price target on the stock from $38.00 to $29.00. The stock had previously closed at $26.74, but opened at $25.17. Scotiabank currently has a sector perform rating on the stock. Rapid7 shares last traded at $24.80, with a volume of 143,711 shares trading hands.

Several other research analysts also recently commented on RPD. Piper Sandler reduced their target price on Rapid7 from $35.00 to $30.00 and set a “neutral” rating on the stock in a report on Tuesday. StockNews.com upgraded Rapid7 from a “hold” rating to a “buy” rating in a research report on Friday, February 21st. Mizuho set a $30.00 price objective on Rapid7 in a research note on Wednesday, April 16th. UBS Group decreased their target price on Rapid7 from $52.00 to $45.00 and set a “buy” rating on the stock in a report on Thursday, February 13th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Rapid7 in a report on Thursday, February 13th. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $33.53.

Insider Activity at Rapid7

In other news, insider Christina Luconi sold 12,551 shares of Rapid7 stock in a transaction dated Monday, April 7th. The stock was sold at an average price of $23.12, for a total transaction of $290,179.12. Following the transaction, the insider now owns 58,165 shares in the company, valued at $1,344,774.80. The trade was a 17.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Rapid7

Hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in shares of Rapid7 by 0.7% during the fourth quarter. Vanguard Group Inc. now owns 8,618,480 shares of the technology company’s stock worth $346,721,000 after buying an additional 60,095 shares in the last quarter. JANA Partners Management LP raised its position in shares of Rapid7 by 0.9% in the fourth quarter. JANA Partners Management LP now owns 3,690,129 shares of the technology company’s stock valued at $148,454,000 after purchasing an additional 34,589 shares during the period. Penserra Capital Management LLC lifted its stake in shares of Rapid7 by 95.8% during the 1st quarter. Penserra Capital Management LLC now owns 1,880,084 shares of the technology company’s stock worth $49,841,000 after buying an additional 919,955 shares during the last quarter. Shapiro Capital Management LLC boosted its holdings in shares of Rapid7 by 295.9% during the 4th quarter. Shapiro Capital Management LLC now owns 1,290,945 shares of the technology company’s stock worth $51,935,000 after buying an additional 964,899 shares during the period. Finally, First Trust Advisors LP boosted its holdings in shares of Rapid7 by 6.8% during the 4th quarter. First Trust Advisors LP now owns 1,255,731 shares of the technology company’s stock worth $50,518,000 after buying an additional 79,836 shares during the period. 95.66% of the stock is currently owned by institutional investors and hedge funds.

Rapid7 Trading Down 8.2%

The firm has a market cap of $1.58 billion, a price-to-earnings ratio of 62.97 and a beta of 1.06. The stock’s 50 day moving average is $25.52 and its 200 day moving average is $34.15.

Rapid7 (NASDAQ:RPD) last posted its earnings results on Monday, May 12th. The technology company reported $0.49 EPS for the quarter, beating the consensus estimate of $0.37 by $0.12. The company had revenue of $210.25 million for the quarter, compared to the consensus estimate of $208.25 million. Rapid7 had a negative return on equity of 130.41% and a net margin of 3.46%. The firm’s revenue for the quarter was up 2.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.55 earnings per share. On average, equities research analysts predict that Rapid7, Inc. will post 0.35 EPS for the current year.

Rapid7 Company Profile

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.