Rapid7, Inc. (NASDAQ:RPD) Receives Average Rating of "Hold" from Analysts

Key Points

• Rapid7, Inc. has received a consensus rating of "Hold" from twenty-one analysts, with two sell recommendations, four buy recommendations, and an average 1-year price target set at $26.56.
• Recent changes to price targets from brokerages reflect a downward trend, with UBS lowering their price objective from $39.00 to $34.00, while Citigroup reduced theirs from $35.00 to $30.00.
• Despite challenges, Rapid7 reported $214.19 million in revenue for the most recent quarter, exceeding estimates, and has set FY 2025 EPS guidance between $1.900 and $2.030.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) has been given a consensus rating of "Hold" by the twenty-one research firms that are presently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a sell recommendation, thirteen have issued a hold recommendation, four have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $26.5556.

A number of brokerages have recently weighed in on RPD. UBS Group dropped their price objective on shares of Rapid7 from $39.00 to $34.00 and set a "buy" rating for the company in a research note on Friday, August 8th. Citigroup lowered their target price on shares of Rapid7 from $35.00 to $30.00 and set a "buy" rating for the company in a research note on Monday, August 18th. Mizuho lowered their target price on shares of Rapid7 from $27.00 to $25.00 and set a "neutral" rating for the company in a research note on Friday, August 8th. Stifel Nicolaus lowered their target price on shares of Rapid7 from $29.00 to $22.00 and set a "hold" rating for the company in a research note on Friday, August 8th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Rapid7 from $28.00 to $23.00 and set a "neutral" rating for the company in a research note on Monday, August 4th.

Insider Activity at Rapid7

In other Rapid7 news, CAO Scott M. Murphy sold 1,370 shares of Rapid7 stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $20.25, for a total value of $27,742.50. Following the transaction, the chief accounting officer owned 27,592 shares in the company, valued at $558,738. This trade represents a 4.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Jana Partners Management, Lp purchased 250,000 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was bought at an average price of $21.26 per share, for a total transaction of $5,315,000.00. Following the acquisition, the director owned 6,518,604 shares in the company, valued at $138,585,521.04. The trade was a 3.99% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired a total of 772,194 shares of company stock valued at $15,135,356 over the last ninety days. 2.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rapid7

A number of hedge funds have recently made changes to their positions in the stock. Diversified Trust Co boosted its holdings in shares of Rapid7 by 6.2% in the 3rd quarter. Diversified Trust Co now owns 23,071 shares of the technology company's stock valued at $433,000 after purchasing an additional 1,348 shares during the last quarter. CWM LLC boosted its holdings in shares of Rapid7 by 323.6% in the 3rd quarter. CWM LLC now owns 6,549 shares of the technology company's stock valued at $123,000 after purchasing an additional 5,003 shares during the last quarter. Pacer Advisors Inc. boosted its position in Rapid7 by 4.8% during the 3rd quarter. Pacer Advisors Inc. now owns 376,456 shares of the technology company's stock worth $7,059,000 after purchasing an additional 17,247 shares during the period. Assenagon Asset Management S.A. boosted its position in Rapid7 by 366.2% during the 3rd quarter. Assenagon Asset Management S.A. now owns 144,707 shares of the technology company's stock worth $2,713,000 after purchasing an additional 113,664 shares during the period. Finally, State of Wyoming boosted its position in Rapid7 by 35.5% during the 2nd quarter. State of Wyoming now owns 14,339 shares of the technology company's stock worth $332,000 after purchasing an additional 3,757 shares during the period. Institutional investors and hedge funds own 95.66% of the company's stock.

Rapid7 Price Performance

RPD stock opened at $18.78 on Tuesday. The firm has a 50 day moving average of $19.73 and a 200-day moving average of $21.95. Rapid7 has a 12-month low of $17.75 and a 12-month high of $44.48. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 9.84. The company has a market cap of $1.22 billion, a price-to-earnings ratio of 45.81 and a beta of 0.92.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $212.17 million. During the same period last year, the firm earned $0.58 EPS. The company's revenue for the quarter 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. As a group, equities analysts expect that Rapid7 will post 0.35 EPS for the current fiscal 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.

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