Redwood Investment Management LLC Sells 35,077 Shares of Rapid7, Inc. $RPD

Key Points

• Redwood Investment Management LLC has reduced its stake in Rapid7, Inc. by 59.4%, now holding 23,934 shares valued at $634,000.
• Several other institutional investors have increased their positions in Rapid7, with 95.66% of the stock currently owned by institutional investors overall.
• Analysts have mixed ratings on Rapid7, with a consensus price target of $26.89 and multiple firms adjusting their price targets recently.

Redwood Investment Management LLC decreased its position in shares of Rapid7, Inc. (NASDAQ:RPD - Free Report) by 59.4% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 23,934 shares of the technology company's stock after selling 35,077 shares during the quarter. Redwood Investment Management LLC's holdings in Rapid7 were worth $634,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Invesco Ltd. grew its position in shares of Rapid7 by 5.4% during the 4th quarter. Invesco Ltd. now owns 36,487 shares of the technology company's stock worth $1,468,000 after buying an additional 1,860 shares during the period. Dimensional Fund Advisors LP acquired a new stake in shares of Rapid7 during the 4th quarter worth approximately $4,099,000. MetLife Investment Management LLC grew its position in shares of Rapid7 by 5.8% during the 4th quarter. MetLife Investment Management LLC now owns 37,787 shares of the technology company's stock worth $1,520,000 after buying an additional 2,066 shares during the period. Stifel Financial Corp grew its position in shares of Rapid7 by 257.3% during the 4th quarter. Stifel Financial Corp now owns 90,132 shares of the technology company's stock worth $3,626,000 after buying an additional 64,903 shares during the period. Finally, Northern Trust Corp grew its position in shares of Rapid7 by 8.0% during the 4th quarter. Northern Trust Corp now owns 624,936 shares of the technology company's stock worth $25,141,000 after buying an additional 46,351 shares during the period. Institutional investors own 95.66% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on RPD. Stifel Nicolaus reduced their price objective on shares of Rapid7 from $29.00 to $22.00 and set a "hold" rating for the company in a research report on Friday, August 8th. Wall Street Zen raised shares of Rapid7 from a "hold" rating to a "buy" rating in a research report on Sunday, August 3rd. Morgan Stanley reduced their price objective on shares of Rapid7 from $28.00 to $22.00 and set an "equal weight" rating for the company in a research report on Tuesday. Barclays reduced their price target on shares of Rapid7 from $26.00 to $25.00 and set an "equal weight" rating for the company in a research report on Tuesday, May 13th. Finally, UBS Group reduced their price target on shares of Rapid7 from $39.00 to $34.00 and set a "buy" rating for the company in a research report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $26.56.

Insiders Place Their Bets

In other Rapid7 news, Director Jana Partners Management, Lp bought 250,000 shares of the stock in a transaction dated Wednesday, August 13th. The shares were bought at an average cost of $21.26 per share, for a total transaction of $5,315,000.00. Following the purchase, the director directly owned 6,518,604 shares of the company's stock, valued at approximately $138,585,521.04. This trade represents a 3.99% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Scott M. Murphy sold 1,370 shares of Rapid7 stock in a transaction on Friday, August 22nd. The stock was 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 in the company, valued at $558,738. The trade was a 4.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have bought a total of 772,194 shares of company stock worth $15,135,356 over the last quarter. Company insiders own 2.40% of the company's stock.

Rapid7 Stock Down 3.6%

NASDAQ:RPD traded down $0.75 during trading hours on Tuesday, hitting $19.96. 121,509 shares of the company traded hands, compared to its average volume of 862,356. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 9.84. The firm's 50-day simple moving average is $21.92 and its 200-day simple moving average is $24.35. Rapid7, Inc. has a one year low of $17.83 and a one year high of $44.48. The company has a market cap of $1.29 billion, a PE ratio of 48.64 and a beta of 0.94.

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, beating 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 business had revenue of $214.19 million for the quarter, compared to analysts' expectations of $212.17 million. During the same period last year, the business earned $0.58 EPS. The business's 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. Equities analysts predict that Rapid7, Inc. will post 0.35 earnings per share for the current year.

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.