Rapid7 (NASDAQ:RPD) Given New $22.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley has cut its target price for Rapid7 from $28.00 to $22.00, while maintaining an "equal weight" rating on the stock, indicating a potential upside of 6.84% based on current prices.
• Other analysts have also adjusted their price targets, with the consensus target currently at $26.56 and a "Hold" rating, reflecting a range of views from strong buy to sell ratings.
• Rapid7 reported $0.58 earnings per share for the last quarter, beating estimates, and its revenue showed a 3.0% year-over-year increase despite broader market challenges.

Rapid7 (NASDAQ:RPD - Get Free Report) had its price target dropped by equities research analysts at Morgan Stanley from $28.00 to $22.00 in a research report issued on Tuesday, MarketBeat reports. The firm currently has an "equal weight" rating on the technology company's stock. Morgan Stanley's price objective indicates a potential upside of 8.27% from the company's current price.

A number of other research firms have also recently weighed in on RPD. Susquehanna lowered their target price on shares of Rapid7 from $30.00 to $18.00 and set a "neutral" rating on the stock in a research note on Monday, August 11th. UBS Group lowered their target price on shares of Rapid7 from $39.00 to $34.00 and set a "buy" rating on the stock 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 on the stock in a research note on Monday, August 18th. Canaccord Genuity Group lowered their target price on shares of Rapid7 from $39.00 to $32.00 and set a "hold" rating on the stock in a research note on Monday, August 11th. Finally, Raymond James Financial decreased their price target on shares of Rapid7 from $40.00 to $30.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Rapid7 presently has an average rating of "Hold" and a consensus target price of $26.56.

Rapid7 Stock Performance

Shares of Rapid7 stock traded up $0.48 on Tuesday, hitting $20.32. 832,486 shares of the company's stock were exchanged, compared to its average volume of 909,137. The company has a 50-day simple moving average of $21.68 and a 200-day simple moving average of $24.09. The stock has a market capitalization of $1.32 billion, a PE ratio of 49.56 and a beta of 0.94. Rapid7 has a 1 year low of $17.83 and a 1 year high of $44.48. The company has a debt-to-equity ratio of 9.84, a quick ratio of 1.36 and a current ratio of 1.36.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share for the quarter, topping the consensus estimate 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 company's revenue was up 3.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.58 EPS. 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 anticipate that Rapid7 will post 0.35 EPS for the current year.

Insider Activity

In other news, CAO Scott M. Murphy sold 1,370 shares of the company's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $20.25, for a total transaction of $27,742.50. Following the sale, the chief accounting officer directly owned 27,592 shares in the company, valued at approximately $558,738. This represents a 4.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jana Partners Management, Lp bought 250,000 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were acquired at an average price of $21.26 per share, for a total transaction of $5,315,000.00. Following the completion of the transaction, the director directly owned 6,518,604 shares in the company, valued at approximately $138,585,521.04. This represents a 3.99% increase in their position. The disclosure for this purchase can be found here. Insiders have bought a total of 772,194 shares of company stock worth $15,135,356 over the last 90 days. Corporate insiders own 2.40% of the company's stock.

Institutional Trading of Rapid7

Hedge funds have recently made changes to their positions in the business. Principal Financial Group Inc. increased its holdings in shares of Rapid7 by 1.1% during the 1st quarter. Principal Financial Group Inc. now owns 54,915 shares of the technology company's stock worth $1,456,000 after buying an additional 609 shares during the last quarter. Y.D. More Investments Ltd increased its holdings in shares of Rapid7 by 12.0% during the 1st quarter. Y.D. More Investments Ltd now owns 5,839 shares of the technology company's stock worth $171,000 after buying an additional 625 shares during the last quarter. Prudential Financial Inc. increased its holdings in shares of Rapid7 by 8.8% during the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company's stock worth $197,000 after buying an additional 690 shares during the last quarter. Nordea Investment Management AB increased its holdings in shares of Rapid7 by 1.0% during the 2nd quarter. Nordea Investment Management AB now owns 78,294 shares of the technology company's stock worth $1,808,000 after buying an additional 753 shares during the last quarter. Finally, Teacher Retirement System of Texas increased its holdings in shares of Rapid7 by 1.6% during the 2nd quarter. Teacher Retirement System of Texas now owns 54,981 shares of the technology company's stock worth $1,272,000 after buying an additional 890 shares during the last quarter. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

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.