Rapid7 (NASDAQ:RPD) Given Sell (D) Rating at Weiss Ratings

Key Points

• Rapid7's stock has been given a sell (D) rating by Weiss Ratings, which reaffirms concerns over its current performance.
• Target prices for Rapid7 have been reduced by multiple analysts, with the average target now at $26.56, indicating a consensus rating of "Hold."
• Despite the downgrades, Rapid7 reported a net margin of 3.41% and revenue growth, suggesting potential for profitability in the upcoming fiscal year.

Rapid7 (NASDAQ:RPD - Get Free Report)'s stock had its "sell (d)" rating reaffirmed by research analysts at Weiss Ratings in a report issued on Tuesday,Weiss Ratings reports.

Several other analysts also recently weighed in on RPD. Susquehanna lowered their target price on Rapid7 from $30.00 to $18.00 and set a "neutral" rating for the company in a research note on Monday, August 11th. Raymond James Financial reduced their price target on Rapid7 from $40.00 to $30.00 and set an "outperform" rating for the company in a report on Friday, August 8th. Canaccord Genuity Group cut their target price on Rapid7 from $39.00 to $32.00 and set a "hold" rating on the stock in a research report on Monday, August 11th. Royal Bank Of Canada cut their target price on Rapid7 from $27.00 to $23.00 and set a "sector perform" rating on the stock in a research report on Friday, August 8th. Finally, Stifel Nicolaus dropped their price target 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. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $26.56.

Rapid7 Stock Up 0.3%

NASDAQ RPD traded up $0.07 on Tuesday, reaching $18.79. The company had a trading volume of 339,005 shares, compared to its average volume of 880,832. The firm has a market capitalization of $1.22 billion, a PE ratio of 45.71 and a beta of 0.92. Rapid7 has a 1 year low of $17.75 and a 1 year high of $44.48. The firm has a 50-day moving average of $19.83 and a 200-day moving average of $22.22. The company has a debt-to-equity ratio of 9.84, a current ratio of 1.36 and a quick ratio of 1.36.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its earnings results on Thursday, August 7th. The technology company reported $0.58 EPS for the quarter, topping 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 business had revenue of $214.19 million for the quarter, compared to analysts' expectations of $212.17 million. During the same period in the previous year, the company posted $0.58 earnings per share. The business's revenue for the quarter was up 3.0% compared to the same quarter last year. Rapid7 has set its FY 2025 guidance at 1.900-2.030 EPS. Q3 2025 guidance at 0.440-0.470 EPS. On average, equities research analysts anticipate that Rapid7 will post 0.35 EPS for the current fiscal year.

Insider Activity

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

Institutional Trading of Rapid7

Several hedge funds have recently added to or reduced their stakes in the business. Teacher Retirement System of Texas increased its holdings in shares of Rapid7 by 24.1% during the first quarter. Teacher Retirement System of Texas now owns 54,091 shares of the technology company's stock valued at $1,434,000 after purchasing an additional 10,487 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its holdings in Rapid7 by 18.5% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 10,548 shares of the technology company's stock worth $291,000 after purchasing an additional 1,648 shares in the last quarter. New York State Teachers Retirement System bought a new stake in Rapid7 during the first quarter worth approximately $29,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings 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 worth $60,610,000 after purchasing an additional 1,209,856 shares in the last quarter. Finally, Principal Financial Group Inc. boosted its stake in Rapid7 by 1.1% during the first quarter. Principal Financial Group Inc. now owns 54,915 shares of the technology company's stock valued at $1,456,000 after buying an additional 609 shares in the last quarter. Institutional investors own 95.66% of the company's stock.

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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