Rapid7 (NASDAQ:RPD) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Rapid7 has been downgraded from a "buy" rating to a "hold" rating by Wall Street Zen, reflecting a shift in market confidence.
• Equity analysts have varied target price adjustments, with some increasing it while others lower; the overall average target price for Rapid7 is now $33.16.
• Recent hedge fund activity shows significant increases in holdings, with institutions now owning approximately 95.66% of Rapid7's stock.

Rapid7 (NASDAQ:RPD - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

Several other research analysts also recently commented on RPD. JPMorgan Chase & Co. reduced their target price on Rapid7 from $36.00 to $29.00 and set a "neutral" rating for the company in a research note on Monday, May 12th. Mizuho reduced their target price on Rapid7 from $30.00 to $27.00 and set a "neutral" rating for the company in a research note on Wednesday, July 16th. Morgan Stanley lifted their price target on Rapid7 from $26.00 to $28.00 and gave the stock an "equal weight" rating in a report on Tuesday, May 13th. Royal Bank Of Canada reissued a "sector perform" rating on shares of Rapid7 in a report on Tuesday, May 13th. Finally, Piper Sandler dropped their price target on Rapid7 from $35.00 to $30.00 and set a "neutral" rating for the company in a report on Tuesday, May 13th. One equities research analyst has rated the stock with a sell rating, fifteen have issued a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Rapid7 presently has an average rating of "Hold" and a consensus price target of $33.16.

Rapid7 Stock Up 1.0%

Rapid7 stock traded up $0.22 during midday trading on Friday, reaching $22.93. The stock had a trading volume of 178,190 shares, compared to its average volume of 847,610. The firm's fifty day simple moving average is $23.33 and its 200-day simple moving average is $27.60. Rapid7 has a 1-year low of $21.61 and a 1-year high of $44.48. The stock has a market capitalization of $1.47 billion, a P/E ratio of 58.82 and a beta of 1.01. The company has a debt-to-equity ratio of 16.87, a quick ratio of 1.24 and a current ratio of 1.24.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its quarterly earnings results on Monday, May 12th. The technology company reported $0.49 earnings per share for the quarter, beating analysts' consensus estimates of $0.37 by $0.12. The firm had revenue of $210.25 million during the quarter, compared to the consensus estimate of $208.25 million. Rapid7 had a return on equity of 2,043.18% and a net margin of 3.42%. The business's revenue was up 2.5% compared to the same quarter last year. During the same period last year, the company earned $0.55 earnings per share. As a group, analysts expect that Rapid7 will post 0.35 EPS for the current fiscal year.

Institutional Trading of Rapid7

Institutional investors and hedge funds have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Rapid7 by 112.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,286,300 shares of the technology company's stock valued at $60,610,000 after purchasing an additional 1,209,856 shares in the last quarter. Shapiro Capital Management LLC raised its holdings in Rapid7 by 295.9% during the fourth quarter. Shapiro Capital Management LLC now owns 1,290,945 shares of the technology company's stock valued at $51,935,000 after acquiring an additional 964,899 shares during the period. Penserra Capital Management LLC raised its holdings in Rapid7 by 95.8% during the first quarter. Penserra Capital Management LLC now owns 1,880,084 shares of the technology company's stock valued at $49,841,000 after acquiring an additional 919,955 shares during the period. Jones Financial Companies Lllp raised its holdings in Rapid7 by 756,734.3% during the first quarter. Jones Financial Companies Lllp now owns 749,266 shares of the technology company's stock valued at $19,863,000 after acquiring an additional 749,167 shares during the period. Finally, Nuveen LLC bought a new stake in Rapid7 during the first quarter valued at about $15,510,000. Institutional investors own 95.66% of the company's stock.

Rapid7 Company Profile

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.