Rapid7 (NASDAQ:RPD) Stock Gets Price Target Boost from Piper Sandler

Key Points

• Piper Sandler raised its Rapid7 price target from $12 to $20 but maintained a neutral rating; the new target implies 24.6% upside from the stock’s current price.
• Rapid7 beat quarterly estimates, reporting earnings of $0.60 per share and revenue of $212.4 million. However, revenue was down 2.5% year over year.
• Analyst sentiment remains cautious overall: MarketBeat reports an average “Reduce” rating and an average price target of $12.77.

Rapid7 (NASDAQ:RPD - Get Free Report) had its target price raised by analysts at Piper Sandler from $12.00 to $20.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "neutral" rating on the technology company's stock. Piper Sandler's price target points to a potential upside of 24.60% from the company's current price.

A number of other analysts also recently weighed in on RPD. Citigroup reissued a "neutral" rating on shares of Rapid7 in a research report on Wednesday, August 12th. Raymond James Financial reiterated an "outperform" rating and set a $15.00 price objective on shares of Rapid7 in a research note on Tuesday, August 11th. DA Davidson boosted their target price on shares of Rapid7 from $5.25 to $9.00 and gave the stock an "underperform" rating in a research report on Tuesday, August 11th. Weiss Ratings raised shares of Rapid7 from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, September 14th. Finally, Stephens restated a "positive" rating on shares of Rapid7 in a research note on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, Rapid7 presently has an average rating of "Reduce" and an average price target of $12.77.

Rapid7 Stock Performance

RPD stock traded up $1.01 during trading on Thursday, hitting $16.05. The company had a trading volume of 1,505,363 shares, compared to its average volume of 2,096,835. The firm has a market cap of $1.08 billion, a PE ratio of 52.00 and a beta of 0.90. Rapid7 has a 1-year low of $4.97 and a 1-year high of $18.56. The firm has a 50-day moving average price of $13.07 and a 200-day moving average price of $9.55. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.50.

Rapid7 (NASDAQ:RPD - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The technology company reported $0.60 earnings per share for the quarter, beating analysts' consensus estimates of $0.46 by $0.14. Rapid7 had a return on equity of 27.89% and a net margin of 2.35%. The company had revenue of $212.40 million for the quarter, compared to analyst estimates of $209.05 million. During the same quarter in the previous year, the company earned $0.57 EPS. The firm's revenue for the quarter was down 2.5% compared to the same quarter last year. On average, analysts expect that Rapid7 will post 0.76 earnings per share for the current year.

Hedge Funds Weigh In On Rapid7

Several large investors have recently made changes to their positions in the business. GAMMA Investing LLC grew its holdings in Rapid7 by 20.6% during the second quarter. GAMMA Investing LLC now owns 5,866 shares of the technology company's stock valued at $48,000 after purchasing an additional 1,000 shares during the period. Versant Capital Management Inc boosted its position in shares of Rapid7 by 13.4% during the second quarter. Versant Capital Management Inc now owns 10,469 shares of the technology company's stock worth $85,000 after purchasing an additional 1,238 shares in the last quarter. Pinnacle Wealth Planning Services Inc. boosted its position in shares of Rapid7 by 34.5% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 5,752 shares of the technology company's stock worth $70,000 after purchasing an additional 1,475 shares in the last quarter. Parallel Advisors LLC grew its holdings in shares of Rapid7 by 108.8% in the 1st quarter. Parallel Advisors LLC now owns 6,340 shares of the technology company's stock valued at $35,000 after buying an additional 3,304 shares during the period. Finally, Allworth Financial LP increased its position in shares of Rapid7 by 511.3% in the 2nd quarter. Allworth Financial LP now owns 5,245 shares of the technology company's stock valued at $42,000 after buying an additional 4,387 shares in the last quarter. Institutional investors own 95.66% of the company's stock.

Key Headlines Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Rapid7 earned $0.60 per share, ahead of estimates of $0.45–$0.46 and up from $0.57 a year earlier. Revenue of $212.4 million also topped the $209.1 million consensus. The results prompted favorable investor reaction. Rapid7 Q3 earnings and revenues top estimates
• Neutral Sentiment: The company expects fourth-quarter adjusted EPS of $0.53–$0.55; the provided report does not include enough analyst-consensus context to assess how that outlook compares with expectations. Rapid7 Q4 adjusted EPS outlook
• Neutral Sentiment: An article raises the question of whether the shares remain overvalued, but the supplied information does not provide its valuation analysis or conclusion. Rapid7 beat third-quarter forecasts—is the stock still overvalued?
• Negative Sentiment: Despite the quarterly revenue beat, sales were down 2.5% year over year, indicating continued pressure on growth. Rapid7 third-quarter earnings results

Rapid7 Company Profile

Rapid7, Inc NASDAQ: RPD is a cybersecurity company that provides technology and services to help organizations identify, assess and manage security risk across their IT environments. Its offerings are designed to support security operations, vulnerability management, cloud security, application security and incident response.

The company's product portfolio includes the Insight platform and solutions such as InsightVM for vulnerability risk management, InsightIDR for security detection and response, InsightCloudSec for cloud security and compliance, and InsightAppSec for application security testing.

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