Rubrik (NYSE:RBRK) Stock Falls 6.5% - Here's What Happened

Key Points

• Rubrik shares fell 6.5% to about $116.05, with trading volume down 91% from its average session volume.
• Despite the decline, analysts remain broadly positive: 30 rate the stock Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $118.04.
• Rubrik reported stronger-than-expected quarterly results, including $0.20 EPS versus $0.04 expected and 43.9% year-over-year revenue growth, while insiders sold roughly $11.5 million of stock over the past 90 days.

Rubrik, Inc. (NYSE:RBRK - Get Free Report) was down 6.5% during trading on Monday. The stock traded as low as $116.08 and last traded at $116.0520. 328,963 shares traded hands during trading, a decline of 91% from the average session volume of 3,633,008 shares. The stock had previously closed at $124.15.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on RBRK. The Goldman Sachs Group reiterated a "buy" rating on shares of Rubrik in a report on Wednesday, August 19th. Weiss Ratings restated a "sell (d-)" rating on shares of Rubrik in a research report on Monday, September 21st. Mizuho upped their target price on shares of Rubrik from $90.00 to $112.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 19th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $120.00 target price on shares of Rubrik in a report on Friday, August 28th. Finally, Scotiabank reiterated an "outperform" rating on shares of Rubrik in a research report on Tuesday, August 25th. Thirty analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, Rubrik presently has a consensus rating of "Moderate Buy" and an average target price of $118.04.

Rubrik Price Performance

The company has a market cap of $24.85 billion, a price-to-earnings ratio of -95.13 and a beta of 1.12. The business's 50-day simple moving average is $110.48 and its 200-day simple moving average is $76.77.

Rubrik (NYSE:RBRK - Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The company reported $0.20 EPS for the quarter, beating the consensus estimate of $0.04 by $0.16. The business had revenue of $427.26 million during the quarter, compared to analyst estimates of $396.30 million. During the same quarter in the prior year, the company earned ($0.03) earnings per share. The firm's revenue for the quarter 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. As a group, sell-side analysts forecast that Rubrik, Inc. will post -1.19 EPS for the current year.

Insider Buying and Selling

In other news, Director John Thompson sold 2,500 shares of Rubrik stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $115.68, for a total transaction of $289,200.00. Following the completion of the sale, the director directly owned 5,000 shares in the company, valued at $578,400. The trade was a 33.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through 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 Rubrik stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $124.14, for a total transaction of $1,591,474.80. Following the sale, the chief technology officer owned 272,538 shares of the company's stock, valued at approximately $33,832,867.32. This trade represents a 4.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 112,542 shares of company stock worth $11,512,172. 13.66% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rubrik

Several hedge funds have recently made changes to their positions in RBRK. SBI Securities Co. Ltd. lifted its holdings in shares of Rubrik by 2.4% during the 3rd quarter. SBI Securities Co. Ltd. now owns 5,457 shares of the company's stock worth $625,000 after acquiring an additional 128 shares during the period. V Square Quantitative Management LLC purchased a new stake in Rubrik in the third quarter valued at approximately $27,000. Motley Fool Asset Management LLC increased its position in Rubrik by 8.3% during the third quarter. Motley Fool Asset Management LLC now owns 3,218 shares of the company's stock worth $368,000 after purchasing an additional 246 shares during the last quarter. Essential Partners LLC increased its position in Rubrik by 99.3% during the first quarter. Essential Partners LLC now owns 570 shares of the company's stock worth $28,000 after purchasing an additional 284 shares during the last quarter. Finally, Versant Capital Management Inc raised its stake in Rubrik by 54.6% during the second quarter. Versant Capital Management Inc now owns 926 shares of the company's stock worth $74,000 after purchasing an additional 327 shares during the period. Institutional investors and hedge funds own 49.54% of the company's stock.

About Rubrik

Rubrik, Inc is a cybersecurity and data-management company that provides organizations with tools to protect, manage and recover data across on-premises infrastructure, cloud environments and software-as-a-service applications. Its platform is designed to help businesses maintain data availability, strengthen cyber resilience and recover operations following events such as ransomware attacks, system failures or other disruptions.

The company's Rubrik Security Cloud platform combines data backup, recovery, archival, monitoring and security capabilities.

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