Rapid7 (NASDAQ:RPD) Shares Down 8.5% on Analyst Downgrade

Rapid7, Inc. (NASDAQ:RPD)’s share price fell 8.5% on Friday after Royal Bank Of Canada lowered their price target on the stock from $27.00 to $23.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Rapid7 traded as low as $18.11 and last traded at $18.14. 1,337,995 shares traded hands during mid-day trading, an increase of 57% from the average session volume of 852,749 shares. The stock had previously closed at $19.82.

RPD has been the topic of several other research reports. Mizuho reduced their price objective on shares of Rapid7 from $27.00 to $25.00 and set a “neutral” rating on the stock in a research note on Friday. Canaccord Genuity Group reduced their price objective on shares of Rapid7 from $43.00 to $39.00 and set a “hold” rating on the stock in a research note on Wednesday, May 14th. Robert W. Baird boosted their price objective on shares of Rapid7 from $26.00 to $28.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 13th. Susquehanna cut their price target on shares of Rapid7 from $40.00 to $30.00 and set a “neutral” rating on the stock in a research report on Tuesday, May 13th. Finally, Raymond James Financial cut their price target on shares of Rapid7 from $40.00 to $30.00 and set an “outperform” rating on the stock in a research report on Friday. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $29.22.

Hedge Funds Weigh In On Rapid7

A number of institutional investors and hedge funds have recently made changes to their positions in RPD. Teacher Retirement System of Texas raised its holdings 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 worth $1,434,000 after acquiring an additional 10,487 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of Rapid7 by 18.5% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 10,548 shares of the technology company’s stock worth $291,000 after acquiring an additional 1,648 shares during the last quarter. New York State Teachers Retirement System acquired a new stake in shares of Rapid7 in the 1st quarter worth about $29,000. Invesco Ltd. raised its holdings in shares of Rapid7 by 5.4% in the 4th quarter. Invesco Ltd. now owns 36,487 shares of the technology company’s stock worth $1,468,000 after acquiring an additional 1,860 shares during the last quarter. Finally, Principal Financial Group Inc. raised its holdings in shares of Rapid7 by 1.1% in the 1st quarter. Principal Financial Group Inc. now owns 54,915 shares of the technology company’s stock worth $1,456,000 after acquiring an additional 609 shares during the last quarter. Institutional investors own 95.66% of the company’s stock.

Rapid7 Stock Down 9.8%

The company has a debt-to-equity ratio of 16.87, a quick ratio of 1.24 and a current ratio of 1.24. The company has a market cap of $1.15 billion, a price-to-earnings ratio of 43.61 and a beta of 0.96. The stock’s fifty day moving average is $22.87 and its two-hundred day moving average is $26.49.

Rapid7 (NASDAQ:RPD) last posted its earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.44 by $0.14. Rapid7 had a net margin of 3.41% and a return on equity of 269.59%. The company had revenue of $214.19 million for the quarter, compared to analyst estimates of $212.17 million. During the same quarter in the prior year, the business posted $0.58 EPS. The firm’s revenue was up 3.0% compared to the same quarter last year. Sell-side analysts predict that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal 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.