Rapid7 (NASDAQ:RPD) Cut to Hold at Zacks Research

Zacks Research lowered shares of Rapid7 (NASDAQ:RPD) from a strong-buy rating to a hold rating in a report released on Tuesday morning,Zacks.com reports.

Several other research firms have also recently issued reports on RPD. Canaccord Genuity Group decreased their price objective on Rapid7 from $32.00 to $27.00 and set a “buy” rating on the stock in a report on Wednesday, November 5th. Mizuho decreased their price target on Rapid7 from $20.00 to $16.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 21st. Wall Street Zen downgraded shares of Rapid7 from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Scotiabank cut their price objective on shares of Rapid7 from $20.00 to $18.00 and set a “sector perform” rating on the stock in a report on Wednesday, November 5th. Finally, Jefferies Financial Group set a $18.00 target price on shares of Rapid7 in a report on Tuesday, December 16th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $19.79.

Rapid7 Trading Down 6.4%

Shares of RPD stock opened at $11.73 on Tuesday. The company has a market capitalization of $768.08 million, a price-to-earnings ratio of 34.50 and a beta of 0.79. 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 firm has a 50-day moving average price of $14.67 and a 200 day moving average price of $17.67. Rapid7 has a twelve month low of $11.62 and a twelve month high of $39.62.

Rapid7 (NASDAQ:RPD) last issued its quarterly earnings results on Tuesday, November 4th. The technology company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.12. The business had revenue of $217.96 million during the quarter, compared to the consensus estimate of $216.14 million. Rapid7 had a net margin of 2.61% and a return on equity of 67.30%. The company’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $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. Research analysts forecast that Rapid7 will post 0.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rapid7 news, Director Thomas E. Schodorf bought 6,300 shares of Rapid7 stock in a transaction that occurred on Wednesday, November 26th. The shares were acquired at an average price of $15.70 per share, for a total transaction of $98,910.00. Following the acquisition, the director owned 34,440 shares of the company’s stock, valued at $540,708. The trade was a 22.39% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Jana Partners Management, Lp purchased 41,545 shares of the firm’s stock in a transaction that occurred on Friday, November 28th. The shares were acquired at an average cost of $15.71 per share, with a total value of $652,671.95. Following the completion of the transaction, the director owned 6,760,149 shares in the company, valued at $106,201,940.79. This trade represents a 0.62% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have bought 67,345 shares of company stock worth $1,025,202. 2.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in shares of Rapid7 by 7.6% in the fourth quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company’s stock worth $140,961,000 after buying an additional 653,498 shares during the last quarter. JANA Partners Management LP increased its position in shares of Rapid7 by 13.5% in the 3rd quarter. JANA Partners Management LP now owns 6,502,108 shares of the technology company’s stock worth $121,915,000 after purchasing an additional 772,194 shares during the last quarter. Penserra Capital Management LLC raised its stake in shares of Rapid7 by 45.3% in the 2nd quarter. Penserra Capital Management LLC now owns 2,731,192 shares of the technology company’s stock valued at $63,172,000 after purchasing an additional 851,108 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Rapid7 by 1.6% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,170,876 shares of the technology company’s stock worth $40,716,000 after purchasing an additional 34,438 shares during the last quarter. Finally, First Trust Advisors LP lifted its position in shares of Rapid7 by 1.6% during the third quarter. First Trust Advisors LP now owns 1,568,047 shares of the technology company’s stock worth $29,401,000 after purchasing an additional 24,277 shares during the last quarter. 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.