Alyeska Investment Group L.P. Acquires 23,983 Shares of Rapid7, Inc. $RPD

Key Points

• Alyeska Investment Group L.P. increased its stake in Rapid7 by 3.6% during the first quarter, acquiring an additional 23,983 shares and totaling 681,997 shares valued at approximately $18 million.
• Rapid7's stock price has faced downgrades from several analysts, including a reduction of the price target by Citigroup from $35.00 to $30.00 while maintaining a "buy" rating.
• The company reported a 3.0% increase in revenue year-over-year, reaching $214.19 million for the quarter, with earnings per share of $0.58, surpassing analyst expectations.

Alyeska Investment Group L.P. lifted its stake in shares of Rapid7, Inc. (NASDAQ:RPD - Free Report) by 3.6% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 681,997 shares of the technology company's stock after purchasing an additional 23,983 shares during the period. Alyeska Investment Group L.P. owned 1.06% of Rapid7 worth $18,080,000 at the end of the most recent quarter.

Other large investors also recently made changes to their positions in the company. Shapiro Capital Management LLC lifted its stake in Rapid7 by 295.9% in the fourth quarter. Shapiro Capital Management LLC now owns 1,290,945 shares of the technology company's stock valued at $51,935,000 after acquiring an additional 964,899 shares during the last quarter. Penserra Capital Management LLC increased its stake in shares of Rapid7 by 95.8% during the 1st quarter. Penserra Capital Management LLC now owns 1,880,084 shares of the technology company's stock worth $49,841,000 after purchasing an additional 919,955 shares during the last quarter. Nuveen LLC bought a new stake in shares of Rapid7 in the 1st quarter valued at about $15,510,000. Estuary Capital Management LP acquired a new stake in Rapid7 in the 4th quarter valued at about $20,714,000. Finally, Nuveen Asset Management LLC grew its holdings in Rapid7 by 158.0% during the fourth quarter. Nuveen Asset Management LLC now owns 428,423 shares of the technology company's stock worth $17,235,000 after purchasing an additional 262,382 shares during the period. Institutional investors and hedge funds own 95.66% of the company's stock.

Rapid7 Stock Performance

Shares of RPD stock traded up $0.48 on Friday, hitting $20.32. The company's stock had a trading volume of 832,486 shares, compared to its average volume of 842,385. Rapid7, Inc. has a fifty-two week low of $17.83 and a fifty-two week high of $44.48. The company has a market capitalization of $1.32 billion, a PE ratio of 49.56 and a beta of 0.94. The stock's 50 day moving average is $21.68 and its 200-day moving average is $23.97. The company has a debt-to-equity ratio of 9.84, a quick ratio of 1.36 and a current ratio of 1.36.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The technology company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.14. The business had revenue of $214.19 million during the quarter, compared to analysts' expectations of $212.17 million. Rapid7 had a net margin of 3.41% and a return on equity of 149.12%. The business's revenue was up 3.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.58 EPS. Rapid7 has set its FY 2025 guidance at 1.900-2.030 EPS. Q3 2025 guidance at 0.440-0.470 EPS. Equities research analysts expect that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Jana Partners Management, Lp purchased 250,000 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The stock was acquired at an average cost of $21.26 per share, for a total transaction of $5,315,000.00. Following the completion of the purchase, the director owned 6,518,604 shares in the company, valued at approximately $138,585,521.04. This represents a 3.99% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Scott M. Murphy sold 1,370 shares of the company's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $20.25, for a total value of $27,742.50. Following the sale, the chief accounting officer owned 27,592 shares of the company's stock, valued at approximately $558,738. The trade was a 4.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders bought 772,194 shares of company stock valued at $15,135,356. 2.40% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms have issued reports on RPD. Piper Sandler dropped their price objective on Rapid7 from $35.00 to $30.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 13th. Jefferies Financial Group set a $27.00 target price on Rapid7 and gave the stock a "buy" rating in a report on Friday, August 8th. Mizuho dropped their price target on Rapid7 from $27.00 to $25.00 and set a "neutral" rating on the stock in a research note on Friday, August 8th. JPMorgan Chase & Co. cut their price target on Rapid7 from $28.00 to $23.00 and set a "neutral" rating for the company in a report on Monday, August 4th. Finally, Zacks Research cut shares of Rapid7 from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 26th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Rapid7 presently has a consensus rating of "Hold" and a consensus target price of $26.56.

Rapid7 Company Profile

Rapid7, Inc provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions.