Rapid7 (NASDAQ:RPD) Stock Price Target Raised at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised its Rapid7 price target to $16 from $12 and maintained a “sector perform” rating; the target implies just 2.14% upside from the prior close.
• Rapid7 beat third-quarter estimates, reporting adjusted EPS of $0.60 versus $0.46 expected and revenue of $212.4 million versus $209.05 million expected. However, revenue declined 2.5% year over year.
• Analyst sentiment remains cautious overall: MarketBeat reported a consensus “Reduce” rating and an average price target of $13.09.

Rapid7 (NASDAQ:RPD - Get Free Report) had its target price lifted by Royal Bank Of Canada from $12.00 to $16.00 in a report issued on Thursday, Benzinga reports. The firm currently has a "sector perform" rating on the technology company's stock. Royal Bank Of Canada's price target indicates a potential upside of 2.14% from the company's previous close.

A number of other equities research analysts also recently commented on RPD. Wall Street Zen upgraded shares of Rapid7 from a "hold" rating to a "buy" rating in a research report on Saturday, October 3rd. Barclays boosted their target price on Rapid7 from $12.00 to $14.00 and gave the stock an "underweight" rating in a research report on Thursday. Piper Sandler increased their target price on Rapid7 from $12.00 to $20.00 and gave the stock a "neutral" rating in a research note on Thursday. DA Davidson raised their price target on Rapid7 from $5.25 to $9.00 and gave the company an "underperform" rating in a report on Tuesday, August 11th. Finally, Canaccord Genuity Group raised their price target on Rapid7 from $7.00 to $14.00 and gave the company a "hold" rating in a report on Tuesday, August 11th. One equities research analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $13.09.

Rapid7 Stock Performance

RPD traded up $0.62 during trading on Thursday, hitting $15.66. The stock had a trading volume of 1,990,229 shares, compared to its average volume of 2,099,301. The firm has a market capitalization of $1.06 billion, a P/E ratio of 50.20 and a beta of 0.90. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.80 and a current ratio of 0.80. Rapid7 has a twelve month low of $4.97 and a twelve month high of $18.56. The company's 50-day moving average price is $13.07 and its 200 day moving average price is $9.55.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its earnings results on Wednesday, November 4th. The technology company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.46 by $0.14. The company had revenue of $212.40 million during the quarter, compared to analysts' expectations of $209.05 million. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. The business's revenue was down 2.5% on a year-over-year basis. During the same quarter last year, the business earned $0.57 EPS. On average, equities research analysts forecast that Rapid7 will post 0.76 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in RPD. Quantinno Capital Management LP increased its position in Rapid7 by 776.1% during the first quarter. Quantinno Capital Management LP now owns 260,359 shares of the technology company's stock worth $1,435,000 after buying an additional 230,641 shares in the last quarter. Renaissance Technologies LLC lifted its position in shares of Rapid7 by 535.0% in the first quarter. Renaissance Technologies LLC now owns 149,196 shares of the technology company's stock valued at $822,000 after acquiring an additional 125,700 shares in the last quarter. Public Employees Retirement System of Ohio purchased a new stake in shares of Rapid7 in the second quarter valued at $393,000. Bank of New York Mellon Corp acquired a new stake in shares of Rapid7 during the second quarter valued at $3,844,000. Finally, CWA Asset Management Group LLC acquired a new stake in shares of Rapid7 during the third quarter valued at $1,361,000. 95.66% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Rapid7 reported third-quarter adjusted earnings of $0.60 per share, above the $0.46 consensus, and revenue of $212.4 million, topping estimates of $209.05 million. Quarterly earnings results
• Positive Sentiment: Piper Sandler raised its price target to $20 from $12, implying potential upside from the quoted share price, though it maintained a neutral rating. Piper Sandler rating
• Neutral Sentiment: Rapid7 forecast fourth-quarter adjusted EPS of $0.53–$0.55; the provided report does not include analyst expectations for comparison. Fourth-quarter guidance
• Neutral Sentiment: Truist raised its target to $15 from $10 but reiterated a hold rating; the new target is below the quoted share price. Truist rating
• Negative Sentiment: Third-quarter revenue was down 2.5% from a year earlier, tempering the impact of the earnings and sales beats. Barclays also kept an underweight rating despite lifting its target to $14, below the quoted share price. Barclays rating

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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