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

Rapid7, Inc. (NASDAQ:RPD)’s share price reached a new 52-week low during trading on Wednesday . The stock traded as low as $10.32 and last traded at $10.3320, with a volume of 92867 shares changing hands. The stock had previously closed at $10.66.

Wall Street Analyst Weigh In

A number of research firms recently commented on RPD. Weiss Ratings reiterated a “sell (d)” rating on shares of Rapid7 in a research note on Monday, December 29th. Scotiabank decreased their price target on Rapid7 from $20.00 to $18.00 and set a “sector perform” rating for the company in a research note on Wednesday, November 5th. Wall Street Zen cut Rapid7 from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. Truist Financial set a $14.00 price objective on Rapid7 in a report on Tuesday, January 20th. Finally, Jefferies Financial Group lowered their target price on Rapid7 from $18.00 to $13.00 and set a “hold” rating on the stock in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $19.53.

Rapid7 Stock Up 1.8%

The stock has a market capitalization of $710.26 million, a price-to-earnings ratio of 31.90 and a beta of 0.79. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 7.01. The firm has a 50-day moving average of $14.49 and a two-hundred day moving average of $17.37.

Rapid7 (NASDAQ:RPD) last posted its quarterly 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 net margin of 2.61% and a return on equity of 67.30%. The business had revenue of $217.96 million for the quarter, compared to the consensus estimate of $216.14 million. During the same period in the prior year, the business posted $0.66 earnings per share. Rapid7’s revenue for the quarter was up 1.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Rapid7, Inc. will post 0.35 earnings per share for the current year.

Insider Activity

In other news, Director Mike Burns purchased 2,000 shares of the company’s stock in a transaction dated Thursday, November 20th. The shares were bought at an average price of $13.80 per share, with a total value of $27,600.00. Following the completion of the transaction, the director directly owned 5,000 shares in the company, valued at $69,000. This trade represents a 66.67% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Corey E. Thomas acquired 14,500 shares of the firm’s stock in a transaction that occurred on Monday, November 24th. The shares were purchased at an average cost of $13.82 per share, with a total value of $200,390.00. Following the completion of the acquisition, the chief executive officer owned 595,066 shares in the company, valued at $8,223,812.12. This trade represents a 2.50% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have purchased 67,345 shares of company stock valued at $1,025,202. Insiders own 2.40% of the company’s stock.

Institutional Trading of Rapid7

Several institutional investors have recently modified their holdings of the company. Royal Bank of Canada boosted its position in Rapid7 by 26.8% in the first quarter. Royal Bank of Canada now owns 326,910 shares of the technology company’s stock valued at $8,667,000 after buying an additional 69,122 shares in the last quarter. AQR Capital Management LLC acquired a new stake in shares of Rapid7 in the 1st quarter valued at $424,000. Woodline Partners LP raised its position in shares of Rapid7 by 48.0% during the first quarter. Woodline Partners LP now owns 86,712 shares of the technology company’s stock worth $2,299,000 after acquiring an additional 28,115 shares during the last quarter. Wealth Enhancement Advisory Services LLC acquired a new position in shares of Rapid7 during the second quarter valued at $285,000. Finally, Mirae Asset Global Investments Co. Ltd. lifted its position in Rapid7 by 117.3% during the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 22,918 shares of the technology company’s stock valued at $530,000 after purchasing an additional 12,370 shares during the period. Institutional investors and hedge funds own 95.66% of the company’s stock.

Rapid7 Company Profile

Rapid7, Inc is a publicly traded cybersecurity company headquartered in Boston, Massachusetts. Since its founding in 2000, the company has specialized in delivering cloud-based security data and analytics solutions designed to help organizations detect, investigate, and remediate cyber threats. Rapid7 operates under the NASDAQ symbol “RPD” and serves a broad range of industries, including technology, financial services, healthcare, retail, and the public sector.

The core of Rapid7’s offering is its Insight platform, a unified, cloud-native security operations and analytics suite.