Rapid7 (NASDAQ:RPD) Stock Keeps "Hold" Rating at Truist Financial

Key Points

• Truist reiterated its “Hold” rating on Rapid7 while raising its price target from $10 to $15, implying about 9.4% downside from the stock’s then-current price.
• Analyst sentiment is broadly cautious: 17 analysts rate the shares Hold, five Sell and one Buy; MarketBeat’s average rating is “Reduce,” with a $12.35 average price target.
• Rapid7 beat quarterly earnings and revenue estimates, reporting $0.60 EPS and $212.4 million in revenue, but revenue fell 2.5% year over year.

Rapid7 (NASDAQ:RPD - Get Free Report)'s stock had its "hold" rating reiterated by analysts at Truist Financial in a research report issued on Thursday, Benzinga reports. They presently have a $15.00 price objective on the technology company's stock, up from their prior price objective of $10.00. Truist Financial's target price points to a potential downside of 9.37% from the stock's current price.

A number of other equities research analysts also recently weighed in on RPD. Canaccord Genuity Group lifted their price target on shares of Rapid7 from $7.00 to $14.00 and gave the company a "hold" rating in a research report on Tuesday, August 11th. Morgan Stanley downgraded Rapid7 from an "equal weight" rating to an "underweight" rating and set a $9.00 price target on the stock. in a research report on Tuesday, July 21st. Raymond James Financial restated an "outperform" rating and set a $15.00 price objective on shares of Rapid7 in a research note on Tuesday, August 11th. Mizuho lifted their price objective on Rapid7 from $11.00 to $13.00 and gave the company a "neutral" rating in a report on Thursday, October 15th. Finally, Scotiabank lifted their price objective on Rapid7 from $7.00 to $10.15 and gave the company a "sector perform" rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $12.35.

Rapid7 Stock Performance

Shares of Rapid7 stock traded up $1.51 during trading on Thursday, reaching $16.55. The company's stock had a trading volume of 1,072,634 shares, compared to its average volume of 2,094,451. The business's 50-day moving average price is $13.07 and its 200-day moving average price is $9.55. The firm has a market cap of $1.12 billion, a PE ratio of 53.59 and a beta of 0.90. Rapid7 has a 52 week low of $4.97 and a 52 week high of $18.56. 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 released its quarterly earnings results on Wednesday, November 4th. The technology company reported $0.60 EPS for the quarter, topping analysts' consensus estimates of $0.46 by $0.14. The business had revenue of $212.40 million for the quarter, compared to analyst estimates of $209.05 million. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. Rapid7's revenue for the quarter was down 2.5% compared to the same quarter last year. During the same period last year, the firm earned $0.57 earnings per share. Equities analysts forecast that Rapid7 will post 0.76 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RPD. Bank of America Corp DE acquired a new stake in shares of Rapid7 during the second quarter valued at about $6,861,000. Bank of New York Mellon Corp acquired a new position in shares of Rapid7 in the second quarter valued at approximately $3,844,000. Man Group plc acquired a new position in shares of Rapid7 in the second quarter valued at approximately $3,409,000. Quantinno Capital Management LP increased its stake in shares of Rapid7 by 776.1% in the first quarter. Quantinno Capital Management LP now owns 260,359 shares of the technology company's stock valued at $1,435,000 after buying an additional 230,641 shares during the period. Finally, Deutsche Bank AG bought a new position in Rapid7 in the 2nd quarter valued at approximately $1,751,000. 95.66% of the stock is owned by institutional investors.

Key Rapid7 News

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

About Rapid7

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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