Invenomic Capital Management LP Makes New Investment in Rapid7, Inc. $RPD

Key Points

• Invenomic Capital Management LP made a new investment of approximately $2.10 million in Rapid7, acquiring 79,049 shares during the first quarter, representing 0.12% of the company.
• Insider activity at Rapid7 includes CAO Scott M. Murphy selling 1,370 shares while Director Jana Partners Management purchased 358,738 shares, indicating active trading among company insiders.
• Equities analysts have downgraded Rapid7's stock ratings, with Zacks cutting it from a "strong-buy" to a "hold," reflecting a cautious outlook as several firms lowered their target prices.

Invenomic Capital Management LP bought a new position in Rapid7, Inc. (NASDAQ:RPD - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 79,049 shares of the technology company's stock, valued at approximately $2,096,000. Invenomic Capital Management LP owned 0.12% of Rapid7 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in RPD. New York State Teachers Retirement System bought a new position in Rapid7 in the 1st quarter worth about $29,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in Rapid7 in the first quarter worth $38,000. Versant Capital Management Inc boosted its holdings in Rapid7 by 5,311.1% in the first quarter. Versant Capital Management Inc now owns 1,461 shares of the technology company's stock worth $39,000 after acquiring an additional 1,434 shares in the last quarter. DekaBank Deutsche Girozentrale bought a new stake in Rapid7 in the first quarter worth $74,000. Finally, New Age Alpha Advisors LLC bought a new stake in Rapid7 in the first quarter worth $115,000. Institutional investors own 95.66% of the company's stock.

Insider Buying and Selling at Rapid7

In other Rapid7 news, CAO Scott M. Murphy sold 1,370 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $20.25, for a total transaction of $27,742.50. Following the transaction, 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 transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Jana Partners Management, Lp bought 358,738 shares of the company's stock in a transaction that occurred on Monday, August 11th. The shares were acquired at an average price of $18.23 per share, for a total transaction 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. The trade was a 6.24% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired a total of 772,194 shares of company stock worth $15,135,356 over the last 90 days. 2.40% of the stock is currently owned by company insiders.

Rapid7 Price Performance

Shares of NASDAQ RPD traded up $0.33 during mid-day trading on Thursday, reaching $19.80. The company's stock had a trading volume of 141,703 shares, compared to its average volume of 856,406. 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 current ratio of 1.36 and a quick ratio of 1.36. The firm has a market capitalization of $1.28 billion, a PE ratio of 48.30 and a beta of 0.94. The stock has a fifty day moving average of $21.47 and a two-hundred day moving average of $23.83.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.44 by $0.14. The firm had revenue of $214.19 million during the quarter, compared to analyst estimates of $212.17 million. Rapid7 had a return on equity of 149.12% and a net margin of 3.41%.Rapid7's quarterly revenue was up 3.0% compared to the same quarter last year. During the same period last 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. As a group, sell-side analysts anticipate that Rapid7, Inc. will post 0.35 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts have commented on the company. Raymond James Financial dropped their target price on Rapid7 from $40.00 to $30.00 and set an "outperform" rating on the stock in a report on Friday, August 8th. Royal Bank Of Canada reduced their price objective on Rapid7 from $27.00 to $23.00 and set a "sector perform" rating for the company in a research report on Friday, August 8th. Susquehanna reduced their price objective on Rapid7 from $30.00 to $18.00 and set a "neutral" rating for the company in a research report on Monday, August 11th. JPMorgan Chase & Co. reduced their price objective on Rapid7 from $28.00 to $23.00 and set a "neutral" rating for the company in a research report on Monday, August 4th. Finally, Jefferies Financial Group set a $27.00 price objective on Rapid7 and gave the company a "buy" rating in a research report on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $26.56.

Rapid7 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.