Rapid7 (NASDAQ:RPD) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Rapid7 reported quarterly EPS of $0.36, beating estimates by $0.06, with revenue of $209.69 million (slightly above estimates) and a net margin of 2.72%.
• Shares rose to $6.68 on Tuesday on above-average volume, leaving a market capitalization of $446.04 million and a P/E of 18.56 amid a 12‑month range of $4.97–$27.10.
• Analyst sentiment is largely cautious: MarketBeat shows an average rating of "Reduce" and an average price target of $12.21, with the majority of brokers at "Hold."

Rapid7 (NASDAQ:RPD - Get Free Report) posted its earnings results on Tuesday. The technology company reported $0.36 EPS for the quarter, beating the consensus estimate of $0.30 by $0.06, FiscalAI reports. The company had revenue of $209.69 million during the quarter, compared to analyst estimates of $207.95 million. Rapid7 had a return on equity of 47.33% and a net margin of 2.72%.

Rapid7 Stock Performance

Shares of NASDAQ RPD traded up $0.19 during midday trading on Tuesday, hitting $6.68. 2,816,188 shares of the company's stock were exchanged, compared to its average volume of 1,939,891. The company has a debt-to-equity ratio of 5.77, a current ratio of 1.28 and a quick ratio of 1.28. The stock's 50 day moving average price is $6.02 and its 200-day moving average price is $11.40. The firm has a market cap of $446.04 million, a P/E ratio of 18.56 and a beta of 0.89. Rapid7 has a twelve month low of $4.97 and a twelve month high of $27.10.

Institutional Investors Weigh In On Rapid7

A number of institutional investors have recently added to or reduced their stakes in the company. Invesco Ltd. lifted its position in Rapid7 by 41.3% in the fourth quarter. Invesco Ltd. now owns 116,097 shares of the technology company's stock worth $1,765,000 after purchasing an additional 33,952 shares during the period. State of Tennessee Department of Treasury acquired a new stake in Rapid7 in the fourth quarter worth approximately $217,000. Mackenzie Financial Corp lifted its position in Rapid7 by 11.4% in the fourth quarter. Mackenzie Financial Corp now owns 75,679 shares of the technology company's stock worth $1,180,000 after purchasing an additional 7,742 shares during the period. Fuller & Thaler Asset Management Inc. acquired a new stake in Rapid7 in the fourth quarter worth approximately $276,000. Finally, VARCOV Co. acquired a new stake in Rapid7 in the fourth quarter worth approximately $1,118,000. 95.66% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Wall Street Zen lowered Rapid7 from a "buy" rating to a "hold" rating in a report on Tuesday, April 14th. Piper Sandler reduced their price objective on Rapid7 from $16.00 to $10.00 and set a "neutral" rating for the company in a research report on Wednesday, February 11th. Truist Financial reduced their price objective on Rapid7 from $8.00 to $6.00 and set a "hold" rating for the company in a research report on Friday, April 24th. Zacks Research downgraded Rapid7 from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, January 27th. Finally, Canaccord Genuity Group set a $10.00 price objective on Rapid7 and gave the stock a "hold" rating in a research report on Wednesday, February 11th. Two analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, Rapid7 presently has an average rating of "Reduce" and an average price target of $12.21.

Rapid7 Company Profile

Rapid7, Inc is a publicly traded cybersecurity company headquartered in Boston, Massachusetts. Since its founding in 2000, the company has specialized in delivering cloud-based security data and analytics solutions designed to help organizations detect, investigate, and remediate cyber threats. Rapid7 operates under the NASDAQ symbol “RPD” and serves a broad range of industries, including technology, financial services, healthcare, retail, and the public sector.

The core of Rapid7's offering is its Insight platform, a unified, cloud-native security operations and analytics suite.

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