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

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

Several other research analysts have also recently weighed in on RPD. Canaccord Genuity Group lowered their price target on shares of Rapid7 from $32.00 to $27.00 and set a “buy” rating on the stock in a research report on Wednesday, November 5th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Rapid7 in a research note on Monday, December 29th. Jefferies Financial Group set a $18.00 price target on shares of Rapid7 in a research note on Tuesday, December 16th. Piper Sandler reduced their price target on shares of Rapid7 from $19.00 to $16.00 and set a “neutral” rating on the stock in a research report on Monday, January 5th. Finally, Scotiabank decreased their price objective on Rapid7 from $20.00 to $18.00 and set a “sector perform” rating on the stock in a report on Wednesday, November 5th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $21.47.

Rapid7 Trading Down 1.3%

Shares of Rapid7 stock opened at $13.91 on Friday. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.19 and a quick ratio of 1.19. The stock’s 50 day simple moving average is $15.04 and its 200-day simple moving average is $18.60. The stock has a market cap of $910.83 million, a P/E ratio of 40.91 and a beta of 0.79. Rapid7 has a 1-year low of $13.21 and a 1-year high of $40.42.

Rapid7 (NASDAQ:RPD) last posted its quarterly earnings results on Tuesday, November 4th. The technology company reported $0.57 EPS for the quarter, beating 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 return on equity of 67.30% and a net margin of 2.61%.The business’s revenue for the quarter was up 1.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.66 earnings per share. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS and its Q4 2025 guidance at 0.370-0.44 EPS. Analysts predict that Rapid7 will post 0.35 EPS for the current fiscal year.

Insider Transactions at Rapid7

In other news, Director Jana Partners Management, Lp acquired 41,545 shares of the company’s stock in a transaction dated Friday, November 28th. The stock was acquired at an average cost of $15.71 per share, with a total value of $652,671.95. Following the completion of the purchase, the director owned 6,760,149 shares of the company’s stock, valued at $106,201,940.79. This represents a 0.62% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, Director Mike Burns bought 2,000 shares of the firm’s stock in a transaction that occurred on Thursday, November 20th. The shares were purchased at an average cost of $13.80 per share, for a total transaction of $27,600.00. Following the purchase, the director owned 5,000 shares in the company, valued at $69,000. This represents a 66.67% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 67,345 shares of company stock worth $1,025,202 in the last three months. Company insiders own 2.40% of the company’s stock.

Institutional Trading of Rapid7

A number of institutional investors and hedge funds have recently bought and sold shares of RPD. Prudential Financial Inc. lifted its position in shares of Rapid7 by 8.8% during the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock worth $197,000 after purchasing an additional 690 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its stake 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 buying an additional 732 shares during the period. CI Investments Inc. lifted its holdings in Rapid7 by 48.4% during the 3rd quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock worth $43,000 after buying an additional 744 shares in the last quarter. Nordea Investment Management AB boosted 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 buying an additional 753 shares during the period. Finally, Teacher Retirement System of Texas boosted its position in Rapid7 by 1.6% in 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 buying an additional 890 shares during the period. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

About Rapid7

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.