Rapid7 (NASDAQ:RPD) Hits New 1-Year Low After Earnings Miss

Rapid7, Inc. (NASDAQ:RPD) reached a new 52-week low during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $17.73 and last traded at $17.80, with a volume of 1410678 shares changing hands. The stock had previously closed at $18.68.

The technology company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.12. The company had revenue of $217.96 million during the quarter, compared to analyst estimates of $216.14 million. Rapid7 had a net margin of 3.41% and a return on equity of 149.12%. The firm’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.66 EPS. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS. Q4 2025 guidance at 0.370-0.44 EPS.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on RPD shares. Citigroup decreased their price target on Rapid7 from $35.00 to $30.00 and set a “buy” rating on the stock in a report on Monday, August 18th. Wall Street Zen raised Rapid7 from a “hold” rating to a “buy” rating in a report on Sunday, August 3rd. Scotiabank decreased their price target on Rapid7 from $29.00 to $20.00 and set a “sector perform” rating on the stock in a report on Monday, August 11th. UBS Group decreased their price target on Rapid7 from $34.00 to $29.00 and set a “buy” rating on the stock in a report on Tuesday, October 21st. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Rapid7 in a report on Tuesday, October 14th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $26.28.

Insider Activity

In other Rapid7 news, Director Jana Partners Management, Lp bought 250,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 13th. The stock was purchased at an average cost of $21.26 per share, with a total value of $5,315,000.00. Following the completion of the acquisition, the director owned 6,518,604 shares in the company, valued at $138,585,521.04. This trade represents a 3.99% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Scott M. Murphy sold 1,370 shares of the firm’s stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $20.25, for a total transaction of $27,742.50. Following the completion of the transaction, the chief accounting officer directly owned 27,592 shares of the company’s stock, valued at approximately $558,738. This trade represents a 4.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders bought 772,194 shares of company stock worth $15,135,356 over the last ninety days. Insiders own 2.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. New York State Teachers Retirement System purchased a new position in shares of Rapid7 in the first quarter valued at $29,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in Rapid7 during the first quarter worth approximately $38,000. Headlands Technologies LLC bought a new stake in Rapid7 during the second quarter worth approximately $44,000. State of Alaska Department of Revenue bought a new stake in Rapid7 during the third quarter worth approximately $53,000. Finally, DekaBank Deutsche Girozentrale bought a new stake in Rapid7 during the first quarter worth approximately $74,000. 95.66% of the stock is owned by hedge funds and other institutional investors.

Rapid7 Stock Down 4.7%

The company has a 50 day simple moving average of $19.29 and a two-hundred day simple moving average of $21.59. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 9.84. The company has a market capitalization of $1.15 billion, a P/E ratio of 43.42 and a beta of 0.92.

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.