Hawk Ridge Capital Management LP Has $66.50 Million Stock Holdings in Rapid7, Inc. $RPD

Key Points

• Hawk Ridge Capital Management LP reduced its stake in Rapid7, Inc. by 6.9%, selling 185,987 shares and maintaining about 3.1% of the company's total holdings.
• Multiple hedge funds have engaged in trading Rapid7 shares recently, with Versant Capital Management increasing its stake by over 5,000% during the first quarter.
• Wall Street analysts have mixed ratings for Rapid7, with an average price target of $26.56, reflecting concerns in the market about the company's growth prospects.

Hawk Ridge Capital Management LP trimmed its position in Rapid7, Inc. (NASDAQ:RPD - Free Report) by 6.9% in the first quarter, according to its most recent filing with the SEC. The fund owned 2,508,578 shares of the technology company's stock after selling 185,987 shares during the period. Rapid7 accounts for approximately 3.1% of Hawk Ridge Capital Management LP's investment portfolio, making the stock its 17th biggest position. Hawk Ridge Capital Management LP owned 3.91% of Rapid7 worth $66,502,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of RPD. New York State Teachers Retirement System bought a new position in shares of Rapid7 in the 1st quarter valued at $29,000. BI Asset Management Fondsmaeglerselskab A S bought a new position in shares of Rapid7 in the 1st quarter valued at $38,000. Versant Capital Management Inc raised its position in Rapid7 by 5,311.1% during the 1st quarter. Versant Capital Management Inc now owns 1,461 shares of the technology company's stock worth $39,000 after purchasing an additional 1,434 shares during the last quarter. DekaBank Deutsche Girozentrale bought a new position in Rapid7 during the 1st quarter worth $74,000. Finally, New Age Alpha Advisors LLC bought a new position in Rapid7 during the 1st quarter worth $115,000. 95.66% of the stock is currently owned by institutional investors.

Rapid7 Trading Up 1.4%

Shares of RPD stock traded up $0.28 during mid-day trading on Monday, hitting $20.60. The company's stock had a trading volume of 729,855 shares, compared to its average volume of 861,204. The company's fifty day simple moving average is $21.68 and its 200-day simple moving average is $23.97. Rapid7, Inc. has a 52 week low of $17.83 and a 52 week high of $44.48. The company has a debt-to-equity ratio of 9.84, a quick ratio of 1.36 and a current ratio of 1.36. The company has a market cap of $1.33 billion, a PE ratio of 50.25 and a beta of 0.94.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted 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. Rapid7 had a return on equity of 149.12% and a net margin of 3.41%.The firm had revenue of $214.19 million during the quarter, compared to analyst estimates of $212.17 million. During the same period last year, the company posted $0.58 EPS. The business's quarterly revenue was up 3.0% on a year-over-year basis. Rapid7 has set its FY 2025 guidance at 1.900-2.030 EPS. Q3 2025 guidance at 0.440-0.470 EPS. As a group, equities research analysts expect that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

RPD has been the subject of several analyst reports. Scotiabank lowered their target price on Rapid7 from $29.00 to $20.00 and set a "sector perform" rating for the company in a research report on Monday, August 11th. Piper Sandler lowered their target price on Rapid7 from $35.00 to $30.00 and set a "neutral" rating for the company in a research report on Tuesday, May 13th. Stifel Nicolaus lowered their target price on Rapid7 from $29.00 to $22.00 and set a "hold" rating for the company in a research report on Friday, August 8th. Susquehanna lowered their target price on Rapid7 from $30.00 to $18.00 and set a "neutral" rating for the company in a research report on Monday, August 11th. Finally, Morgan Stanley lowered their target price on Rapid7 from $28.00 to $22.00 and set an "equal weight" rating for the company in a research report on Tuesday, September 2nd. One research 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 assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $26.56.

Insider Activity

In other news, CAO Scott M. Murphy sold 1,370 shares of the firm's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $20.25, for a total value of $27,742.50. Following the completion of the sale, the chief accounting officer directly owned 27,592 shares in the company, valued at $558,738. This trade represents a 4.73% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Jana Partners Management, Lp bought 358,738 shares of Rapid7 stock in a transaction dated Monday, August 11th. The stock was purchased at an average price of $18.23 per share, with a total value of $6,539,793.74. Following the completion of the purchase, the director owned 6,105,148 shares in the company, valued at $111,296,848.04. This trade represents a 6.24% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last three months, insiders bought 772,194 shares of company stock valued at $15,135,356. Corporate insiders own 2.40% of the company's stock.

About Rapid7

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.