Rapid7 (NASDAQ:RPD) Hits New 12-Month Low - Time to Sell?

Key Points

• Rapid7 stock hit a new 52-week low, trading at $17.81 after a decline from the previous closing of $18.61, with significant trading volume.
• Several analysts have downgraded their price targets for Rapid7, with Canaccord Genuity lowering it from $39 to $32, while Royal Bank of Canada reduced theirs from $27 to $23.
• The company reported a quarterly earnings per share of $0.58, exceeding analysts' expectations, and stated a projected EPS range of 1.900-2.030 for FY 2025.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report)'s share price reached a new 52-week low on Tuesday . The company traded as low as $17.78 and last traded at $17.81, with a volume of 272512 shares traded. The stock had previously closed at $18.61.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on RPD. Canaccord Genuity Group dropped their price objective on shares of Rapid7 from $39.00 to $32.00 and set a "hold" rating on the stock in a report on Monday, August 11th. Susquehanna dropped their price objective on shares of Rapid7 from $30.00 to $18.00 and set a "neutral" rating on the stock in a report on Monday, August 11th. Royal Bank Of Canada dropped their price objective on shares of Rapid7 from $27.00 to $23.00 and set a "sector perform" rating on the stock in a report on Friday, August 8th. Wall Street Zen upgraded shares of Rapid7 from a "hold" rating to a "buy" rating in a report on Sunday, August 3rd. Finally, Raymond James Financial dropped their price objective on shares of Rapid7 from $40.00 to $30.00 and set an "outperform" rating on the stock in a report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Rapid7 has an average rating of "Hold" and an average price target of $26.56.

Rapid7 Stock Performance

The firm has a market cap of $1.15 billion, a P/E ratio of 43.49 and a beta of 0.92. The stock's 50 day moving average is $20.10 and its two-hundred day moving average is $22.58. 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 earnings per share for the quarter, beating analysts' consensus estimates of $0.44 by $0.14. The business had revenue of $214.19 million for the quarter, compared to analysts' expectations of $212.17 million. Rapid7 had a net margin of 3.41% and a return on equity of 149.12%. The firm's revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.58 earnings per share. 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 predict that Rapid7, Inc. will post 0.35 EPS for the current year.

Insider Transactions at Rapid7

In other Rapid7 news, CAO Scott M. Murphy sold 1,370 shares of the business's stock in a transaction dated 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 directly owned 27,592 shares in the company, valued at $558,738. The trade was a 4.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Jana Partners Management, Lp purchased 358,738 shares of Rapid7 stock in a transaction on Monday, August 11th. The stock was purchased at an average price of $18.23 per share, for a total transaction of $6,539,793.74. Following the completion of the transaction, the director owned 6,105,148 shares of the company's stock, valued at approximately $111,296,848.04. This represents a 6.24% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders acquired 772,194 shares of company stock worth $15,135,356. Company insiders own 2.40% of the company's stock.

Hedge Funds Weigh In On Rapid7

Large investors have recently modified their holdings of the stock. New York State Teachers Retirement System acquired a new position in shares of Rapid7 during the first quarter worth approximately $29,000. BI Asset Management Fondsmaeglerselskab A S acquired a new position in shares of Rapid7 during the first quarter worth approximately $38,000. Headlands Technologies LLC acquired a new position in shares of Rapid7 during the second quarter worth approximately $44,000. DekaBank Deutsche Girozentrale acquired a new position in shares of Rapid7 during the first quarter worth approximately $74,000. Finally, New Age Alpha Advisors LLC acquired a new position in shares of Rapid7 during the first quarter worth approximately $115,000. 95.66% of the stock is currently owned by institutional investors and hedge funds.

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.

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