Rapid7 (NASDAQ:RPD) Stock Price Expected to Rise, Barclays Analyst Says

Key Points

• Barclays raised its Rapid7 price target from $12 to $14 but maintained an underweight rating; the new target implies 11.09% downside from the prior close.
• Analyst views remain cautious overall: MarketBeat reports a consensus “Reduce” rating and an average price target of $12.88, despite Piper Sandler raising its target to $20.
• Rapid7 beat quarterly earnings and revenue estimates, reporting EPS of $0.60 and revenue of $212.4 million, but revenue was down 2.5% year over year.

Rapid7 (NASDAQ:RPD - Get Free Report) had its price target hoisted by research analysts at Barclays from $12.00 to $14.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has an "underweight" rating on the technology company's stock. Barclays's target price points to a potential downside of 11.09% from the company's previous close.

A number of other analysts have also recently commented on the stock. Stephens reaffirmed a "positive" rating on shares of Rapid7 in a research report on Tuesday, August 11th. JPMorgan Chase & Co. downgraded shares of Rapid7 from a "neutral" rating to an "underweight" rating and set a $12.00 price objective on the stock. in a report on Tuesday, September 15th. Stifel Nicolaus increased their price target on Rapid7 from $7.00 to $13.00 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 target price on the stock. in a research note on Tuesday, July 21st. Finally, Piper Sandler lifted their price objective on shares of Rapid7 from $12.00 to $20.00 and gave the stock a "neutral" rating in a research report on Thursday. One research analyst has rated the stock with a Buy rating, seventeen have issued a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, Rapid7 currently has a consensus rating of "Reduce" and a consensus price target of $12.88.

Rapid7 Trading Up 4.7%

Shares of RPD stock traded up $0.71 during mid-day trading on Thursday, reaching $15.75. 1,850,398 shares of the stock traded hands, compared to its average volume of 2,098,511. The stock's fifty day simple moving average is $13.07 and its two-hundred day simple moving average is $9.55. Rapid7 has a 1-year low of $4.97 and a 1-year high of $18.56. The company has a market cap of $1.06 billion, a price-to-earnings ratio of 50.44 and a beta of 0.90. 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 data on Wednesday, November 4th. The technology company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.14. The company had revenue of $212.40 million during the quarter, compared to the consensus estimate of $209.05 million. Rapid7 had a return on equity of 27.89% and a net margin of 2.35%. The firm's revenue was down 2.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.57 earnings per share. On average, research analysts anticipate that Rapid7 will post 0.76 EPS for the current fiscal year.

Hedge Funds Weigh In On Rapid7

A number of large investors have recently added to or reduced their stakes in RPD. Integrated Wealth Concepts LLC bought a new position in shares of Rapid7 during the second quarter valued at $38,000. Allworth Financial LP purchased a new stake in Rapid7 during the 2nd quarter valued at about $42,000. Pinnacle Wealth Planning Services Inc. increased 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 valued at $70,000 after acquiring an additional 1,475 shares in the last quarter. GAMMA Investing LLC raised its holdings in Rapid7 by 20.6% in the 2nd quarter. GAMMA Investing LLC now owns 5,866 shares of the technology company's stock worth $48,000 after acquiring an additional 1,000 shares during the last quarter. Finally, Parallel Advisors LLC raised its holdings in Rapid7 by 108.8% in the 1st quarter. Parallel Advisors LLC now owns 6,340 shares of the technology company's stock worth $35,000 after acquiring an additional 3,304 shares during the last quarter. Hedge funds and other institutional investors own 95.66% of the company's stock.

Rapid7 News Roundup

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Rapid7 reported adjusted earnings of $0.60 per share, above analyst estimates of roughly $0.45–$0.46, while revenue of $212.4 million also exceeded expectations of $209.05 million. The earnings and sales beat helped lift investor sentiment. Rapid7 third-quarter results
• Positive Sentiment: Piper Sandler raised its price target to $20 from $12, implying upside from the current share price, although it maintained a neutral rating. Piper Sandler rating information
• Neutral Sentiment: Truist raised its target to $15 from $10 but reaffirmed its hold rating; the new target is below the cited current share price. Truist rating coverage
• Negative Sentiment: Despite beating estimates, quarterly revenue fell 2.5% year over year. Rapid7 expects fourth-quarter adjusted EPS of $0.53–$0.55, offering investors a near-term outlook to assess against the recent results. Rapid7 fourth-quarter EPS outlook

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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