Insider Buying: Rapid7, Inc. (NASDAQ:RPD) Director Buys 358,738 Shares of Stock

Key Points

• Jana Partners Management, Lp purchased 358,738 shares of Rapid7 stock at $18.23 per share, totaling approximately $6.54 million and increasing their ownership by 6.24%.
• Rapid7's stock rose by 5.9% to $21.32 following the news, with a current market cap of $1.37 billion.
• The company reported $0.58 earnings per share, beating estimates, with a revenue increase of 3.0% year-over-year, totaling $214.19 million for the latest quarter.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) Director Jana Partners Management, Lp purchased 358,738 shares of Rapid7 stock in a transaction on Monday, August 11th. The shares were acquired at an average cost of $18.23 per share, for a total transaction of $6,539,793.74. Following the purchase, the director owned 6,105,148 shares in the company, valued at approximately $111,296,848.04. This trade represents a 6.24% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Jana Partners Management, Lp also recently made the following trade(s):

• On Wednesday, August 13th, Jana Partners Management, Lp bought 250,000 shares of Rapid7 stock. The stock was purchased at an average cost of $21.26 per share, for a total transaction of $5,315,000.00.
• On Tuesday, August 12th, Jana Partners Management, Lp bought 163,456 shares of Rapid7 stock. The stock was purchased at an average cost of $20.07 per share, for a total transaction of $3,280,561.92.

Rapid7 Stock Up 5.9%

NASDAQ:RPD traded up $1.18 during trading hours on Wednesday, hitting $21.32. 1,399,841 shares of the stock traded hands, compared to its average volume of 874,890. The firm has a 50 day moving average price of $22.71 and a 200 day moving average price of $26.13. The company has a current ratio of 1.36, a quick ratio of 1.24 and a debt-to-equity ratio of 9.84. Rapid7, Inc. has a fifty-two week low of $17.83 and a fifty-two week high of $44.48. The firm has a market cap of $1.37 billion, a price-to-earnings ratio of 52.00 and a beta of 0.96.

Rapid7 (NASDAQ:RPD - Get Free Report) last announced its earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.14. Rapid7 had a net margin of 3.41% and a return on equity of 149.12%. The company had revenue of $214.19 million for the quarter, compared to the consensus estimate of $212.17 million. During the same period in the previous year, the business earned $0.58 EPS. The company's revenue was up 3.0% on a year-over-year basis. Equities research analysts anticipate that Rapid7, Inc. will post 0.35 earnings per share for the current year.

Hedge Funds Weigh In On Rapid7

Hedge funds have recently modified their holdings of the stock. New York State Teachers Retirement System bought a new stake in Rapid7 during the first quarter valued at about $29,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of Rapid7 in the first quarter valued at about $38,000. Versant Capital Management Inc lifted its stake in shares of Rapid7 by 5,311.1% in the first quarter. Versant Capital Management Inc now owns 1,461 shares of the technology company's stock valued at $39,000 after buying an additional 1,434 shares during the period. DekaBank Deutsche Girozentrale acquired a new position in Rapid7 in the first quarter worth about $74,000. Finally, Ostrum Asset Management raised its position in Rapid7 by 45.3% in the fourth quarter. Ostrum Asset Management now owns 2,478 shares of the technology company's stock worth $100,000 after purchasing an additional 772 shares in the last quarter. 95.66% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Barclays cut their target price on Rapid7 from $26.00 to $25.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 13th. Raymond James Financial set a $30.00 price objective on Rapid7 and gave the company an "outperform" rating in a research report on Friday, August 8th. Stifel Nicolaus cut their price objective on Rapid7 from $29.00 to $22.00 and set a "hold" rating on the stock in a research report on Friday, August 8th. Scotiabank set a $20.00 target price on Rapid7 and gave the company a "sector perform" rating in a research note on Monday. Finally, Canaccord Genuity Group lowered their target price on Rapid7 from $39.00 to $32.00 and set a "hold" rating for the company in a research note on Monday. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating, five have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, Rapid7 presently has an average rating of "Hold" and a consensus price target of $27.67.

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.

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