Rapid7 (NASDAQ:RPD) Hits New 52-Week Low – Time to Sell?

Rapid7, Inc. (NASDAQ:RPD)’s share price hit a new 52-week low on Thursday . The company traded as low as $11.89 and last traded at $11.94, with a volume of 395729 shares changing hands. The stock had previously closed at $12.53.

Wall Street Analysts Forecast Growth

RPD has been the subject of a number of research analyst reports. Zacks Research downgraded shares of Rapid7 from a “strong-buy” rating to a “hold” rating in a research report on Tuesday. Barclays lowered Rapid7 from an “equal weight” rating to an “underweight” rating and cut their price objective for the stock from $18.00 to $15.00 in a report on Monday, January 5th. Wall Street Zen downgraded Rapid7 from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Berenberg Bank started coverage on Rapid7 in a research note on Tuesday, November 18th. They set a “hold” rating and a $16.00 price target for the company. Finally, Susquehanna set a $15.00 price target on shares of Rapid7 in a research report on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $19.79.

Rapid7 Stock Performance

The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 7.01. The company has a market cap of $772.34 million, a P/E ratio of 34.65 and a beta of 0.79. The business’s 50 day simple moving average is $14.71 and its 200 day simple moving average is $17.71.

Rapid7 (NASDAQ:RPD) last announced its quarterly earnings data on Tuesday, November 4th. The technology company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.45 by $0.12. Rapid7 had a return on equity of 67.30% and a net margin of 2.61%.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 previous year, the business earned $0.66 earnings per share. The business’s revenue was up 1.5% on a year-over-year basis. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS and its Q4 2025 guidance at 0.370-0.44 EPS. Sell-side analysts predict that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Marc Evan Brown purchased 3,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was purchased at an average cost of $15.21 per share, with a total value of $45,630.00. Following the purchase, the director owned 51,882 shares in the company, valued at approximately $789,125.22. This trade represents a 6.14% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Mike Burns acquired 2,000 shares of Rapid7 stock in a transaction that occurred on Thursday, November 20th. The stock was purchased at an average cost of $13.80 per share, for a total transaction 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 ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 67,345 shares of company stock valued at $1,025,202 over the last 90 days. 2.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Rapid7

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RPD. Prudential Financial Inc. grew its stake in Rapid7 by 8.8% in the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock worth $197,000 after acquiring an additional 690 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its holdings in shares of Rapid7 by 6.3% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 12,427 shares of the technology company’s stock valued at $221,000 after purchasing an additional 732 shares during the period. CI Investments Inc. grew its stake in Rapid7 by 48.4% in the third quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock worth $43,000 after purchasing an additional 744 shares in the last quarter. Nordea Investment Management AB increased its holdings in Rapid7 by 1.0% during the 2nd quarter. Nordea Investment Management AB now owns 78,294 shares of the technology company’s stock worth $1,808,000 after purchasing an additional 753 shares during the period. Finally, Teacher Retirement System of Texas raised its position in Rapid7 by 1.6% during the 2nd quarter. Teacher Retirement System of Texas now owns 54,981 shares of the technology company’s stock valued at $1,272,000 after purchasing an additional 890 shares in the last quarter. Institutional investors 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.