Rubrik (NYSE:RBRK) Hits New 12-Month High Following Earnings Beat

Key Points

• Rubrik beat quarterly expectations: Adjusted earnings came in at $0.20 per share versus the $0.04 consensus, while revenue rose 43.9% year over year to $427.26 million, exceeding estimates of $396.30 million.
• Management raised the outlook substantially: Fiscal 2027 earnings guidance was set at $0.47-$0.53 per share, with third-quarter guidance of $0.07-$0.09 per share and full-year revenue expected near $1.7 billion.
• The stock reached a new 52-week high, but valuation risks remain: Shares climbed as high as $107.91, supported by favorable analyst ratings and price targets, while recent insider selling and the stock’s rich valuation could contribute to profit-taking.

Rubrik, Inc. (NYSE:RBRK - Get Free Report)'s share price reached a new 52-week high during trading on Friday following a better than expected earnings announcement. The company traded as high as $107.91 and last traded at $107.1690, with a volume of 8266705 shares trading hands. The stock had previously closed at $96.13.

The company reported $0.20 earnings per share for the quarter, topping analysts' consensus estimates of $0.04 by $0.16. The business had revenue of $427.26 million for the quarter, compared to the consensus estimate of $396.30 million. During the same period in the previous year, the firm earned ($0.03) earnings per share. The company's revenue was up 43.9% compared to the same quarter last year. Rubrik has set its FY 2027 guidance at 0.470-0.530 EPS and its Q3 2027 guidance at 0.070-0.090 EPS.

Rubrik News Roundup

Here are the key news stories impacting Rubrik this week:

• Positive Sentiment: Quarterly results exceeded expectations. Rubrik reported adjusted earnings of $0.20 per share, compared with the $0.04 consensus estimate, while revenue rose 43.9% year over year to $427.26 million, topping expectations of $396.30 million. The company earned $0.20 per share versus a $0.03 loss in the year-ago quarter. Rubrik Reports Second Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Management issued guidance well above Wall Street forecasts. Third-quarter fiscal 2027 earnings are expected at $0.07-$0.09 per share, versus the prior consensus estimate of a $0.02 loss, with revenue of $429 million-$431 million. Full-year earnings guidance of $0.47-$0.53 per share and revenue of approximately $1.7 billion also substantially exceeded previous consensus estimates of $0.03 and $1.6 billion, respectively. Rubrik Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Analyst sentiment remains favorable. Rosenblatt raised its price target to $105 and maintained a Buy rating, while other firms have cited targets ranging from $120 to $135. Rubrik’s growth has been linked to increasing demand for cloud data protection, cybersecurity and AI-related workloads.
• Neutral Sentiment: Rubrik added Rakefet Russak-Aminoach to its board, expanding the board from eight to nine directors. The appointment supports the company’s governance and technology expertise but is unlikely to materially affect near-term financial results. Rubrik Appoints Rakefet Russak-Aminoach to its Board
• Negative Sentiment: Valuation and profit-taking remain risks. Some reports described an initial selloff despite the strong results, suggesting investors may be demanding even higher growth from the richly valued stock after its rapid advance. CFO Kiran Kumar Choudary also sold 10,000 shares under a pre-arranged Rule 10b5-1 plan, a relatively small transaction but a potential short-term sentiment headwind.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on RBRK. Guggenheim restated a "buy" rating on shares of Rubrik in a report on Monday. Wolfe Research reaffirmed an "outperform" rating and set a $95.00 target price on shares of Rubrik in a report on Friday, June 5th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rubrik in a research report on Wednesday, June 24th. The Goldman Sachs Group reissued a "buy" rating on shares of Rubrik in a research note on Wednesday, August 19th. Finally, Truist Financial raised their price objective on Rubrik from $90.00 to $135.00 and gave the stock a "buy" rating in a research report on Wednesday, August 19th. Twenty-nine research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Rubrik currently has an average rating of "Moderate Buy" and an average target price of $104.56.

Insider Activity at Rubrik

In related news, CFO Kiran Kumar Choudary sold 10,000 shares of Rubrik stock in a transaction on Monday, August 24th. The shares were sold at an average price of $98.32, for a total transaction of $983,200.00. Following the completion of the transaction, the chief financial officer owned 978,073 shares of the company's stock, valued at $96,164,137.36. This trade represents a 1.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Arvind Nithrakashyap sold 12,820 shares of the business's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $83.71, for a total transaction of $1,073,162.20. Following the completion of the transaction, the chief technology officer owned 293,293 shares in the company, valued at approximately $24,551,557.03. The trade was a 4.19% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 324,844 shares of company stock valued at $27,172,526 over the last 90 days. 13.66% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Essential Partners LLC lifted its stake in Rubrik by 99.3% in the first quarter. Essential Partners LLC now owns 570 shares of the company's stock valued at $28,000 after buying an additional 284 shares during the period. Atlantic Union Bankshares Corp boosted its position in shares of Rubrik by 100.0% during the 4th quarter. Atlantic Union Bankshares Corp now owns 400 shares of the company's stock worth $31,000 after purchasing an additional 200 shares in the last quarter. Triumph Capital Management acquired a new stake in shares of Rubrik in the 4th quarter valued at about $33,000. Banque Cantonale Vaudoise bought a new stake in Rubrik in the 3rd quarter valued at about $34,000. Finally, Los Angeles Capital Management LLC acquired a new position in Rubrik during the 4th quarter worth approximately $35,000. 49.54% of the stock is owned by institutional investors and hedge funds.

Rubrik Stock Up 11.5%

The stock has a market cap of $22.06 billion, a price-to-earnings ratio of -73.91 and a beta of 1.17. The stock has a 50 day simple moving average of $84.48 and a 200 day simple moving average of $67.25.

Rubrik Company Profile

Rubrik, Inc is a cloud data management and security company that delivers a unified platform for data protection, disaster recovery, compliance and intelligent data governance. Its flagship offering, the Rubrik Security Cloud, enables organizations to automate backup and recovery workflows across on-premises, edge and multi-cloud environments. By combining policy-driven orchestration with real-time threat detection, Rubrik helps clients guard against ransomware, ensure business continuity and enforce data retention requirements.

The company's platform supports a range of services including backup and restore, long-term data archiving, replication, and disaster recovery as a service (DRaaS).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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