Rapid7 (NASDAQ:RPD) Hits New 1-Year Low After Analyst Downgrade

Key Points

• Rapid7's stock hit a 12-month low after Susquehanna lowered its price target from $30 to $18, with the stock closing at $18.04 after trading as low as $17.83.
• Several analysts have recently issued negative ratings on Rapid7, with Mizuho setting a new target price of $25, DA Davidson dropping it to $21, and Canaccord Genuity adjusting their price target to $39.
• Despite the downgrades, Rapid7 reported a rise in revenue of 3.0% year-over-year, achieving $214.19 million in the last quarter and beating EPS estimates by $0.14.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report)'s share price reached a new 52-week low during trading on Monday after Canaccord Genuity Group lowered their price target on the stock from $39.00 to $32.00. Canaccord Genuity Group currently has a hold rating on the stock. Rapid7 traded as low as $17.83 and last traded at $18.04, with a volume of 2167037 shares changing hands. The stock had previously closed at $19.82.

Several other research analysts have also recently commented on the stock. DA Davidson reiterated an "underperform" rating and issued a $21.00 target price (down from $29.00) on shares of Rapid7 in a report on Tuesday, May 13th. JPMorgan Chase & Co. decreased their target price on shares of Rapid7 from $28.00 to $23.00 and set a "neutral" rating for the company in a report on Monday, August 4th. Robert W. Baird raised their target price on shares of Rapid7 from $26.00 to $28.00 and gave the stock a "neutral" rating in a report on Tuesday, May 13th. Royal Bank Of Canada decreased their target price on shares of Rapid7 from $27.00 to $23.00 and set a "sector perform" rating for the company in a report on Friday, August 8th. Finally, Scotiabank set a $20.00 target price on shares of Rapid7 and gave the stock a "sector perform" rating in a report on Monday. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $27.67.

Insider Buying and Selling

In other news, Director Jana Partners Management, Lp acquired 358,738 shares of the business's stock in a transaction that occurred on Monday, August 11th. The shares were bought at an average price of $18.23 per share, with a total value of $6,539,793.74. Following the acquisition, the director directly owned 6,105,148 shares in the company, valued at $111,296,848.04. The trade was a 6.24% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders bought a total of 772,194 shares of company stock worth $15,135,356 over the last three months. 2.40% of the stock is currently owned by insiders.

Institutional Trading of Rapid7

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Canada Pension Plan Investment Board increased its position in Rapid7 by 13.4% during the 2nd quarter. Canada Pension Plan Investment Board now owns 31,300 shares of the technology company's stock valued at $724,000 after purchasing an additional 3,700 shares during the period. Occudo Quantitative Strategies LP bought a new position in shares of Rapid7 during the 2nd quarter worth approximately $556,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Rapid7 by 114.9% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,136,438 shares of the technology company's stock worth $49,409,000 after buying an additional 1,142,148 shares in the last quarter. Caption Management LLC bought a new position in shares of Rapid7 during the 2nd quarter worth approximately $971,000. Finally, Qube Research & Technologies Ltd boosted its holdings in shares of Rapid7 by 37.0% during the 2nd quarter. Qube Research & Technologies Ltd now owns 535,121 shares of the technology company's stock worth $12,377,000 after buying an additional 144,627 shares in the last quarter. Institutional investors and hedge funds own 95.66% of the company's stock.

Rapid7 Price Performance

The stock has a market capitalization of $1.36 billion, a P/E ratio of 51.07 and a beta of 0.96. The business has a fifty day simple moving average of $22.67 and a 200-day simple moving average of $26.09. The company has a debt-to-equity ratio of 9.84, a quick ratio of 1.24 and a current ratio of 1.36.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.44 by $0.14. The firm had revenue of $214.19 million for the quarter, compared to analysts' expectations of $212.17 million. Rapid7 had a return on equity of 149.12% and a net margin of 3.41%. The company's revenue for the quarter was up 3.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.58 EPS. Sell-side analysts expect that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal year.

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.