Rapid7 (NASDAQ:RPD) Sets New 52-Week Low - What's Next?

Key Points

• Rapid7's stock reached a new 52-week low at $21.41, indicating significant volatility, with a current trading range between $21.41 and $22.59.
• Several brokerages have revised their price targets for Rapid7, with Raymond James cutting theirs from $45 to $40, and others lowering forecasts to as low as $29.
• Despite recent stock price drops, Rapid7 reported a quarterly earnings per share of $0.49, exceeding expectations and indicating potential for future growth.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report)'s stock price hit a new 52-week low during trading on Wednesday . The stock traded as low as $21.41 and last traded at $21.67, with a volume of 1100264 shares. The stock had previously closed at $22.59.

Wall Street Analyst Weigh In

RPD has been the topic of several recent analyst reports. Piper Sandler dropped their target price on Rapid7 from $35.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, May 13th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Rapid7 in a report on Tuesday, May 13th. Barclays dropped their price target on Rapid7 from $26.00 to $25.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 13th. Canaccord Genuity Group dropped their price target on Rapid7 from $43.00 to $39.00 and set a "hold" rating on the stock in a report on Wednesday, May 14th. Finally, Robert W. Baird upped their price target on Rapid7 from $26.00 to $28.00 and gave the company a "neutral" rating in a report on Tuesday, May 13th. One investment analyst has rated the stock with a sell rating, fifteen have issued a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $33.16.

Rapid7 Price Performance

The company has a debt-to-equity ratio of 16.87, a current ratio of 1.24 and a quick ratio of 1.24. The stock's fifty day simple moving average is $23.24 and its 200-day simple moving average is $27.30. The company has a market capitalization of $1.32 billion, a P/E ratio of 52.50 and a beta of 1.01.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its quarterly earnings results on Monday, May 12th. The technology company reported $0.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.37 by $0.12. Rapid7 had a net margin of 3.42% and a return on equity of 2,043.18%. The company had revenue of $210.25 million during the quarter, compared to analysts' expectations of $208.25 million. During the same period in the prior year, the company earned $0.55 earnings per share. The business's quarterly revenue was up 2.5% compared to the same quarter last year. On average, equities analysts forecast that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Rapid7

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in Rapid7 by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 8,618,480 shares of the technology company's stock worth $346,721,000 after purchasing an additional 60,095 shares in the last quarter. JANA Partners Management LP increased its holdings in shares of Rapid7 by 0.9% during the fourth quarter. JANA Partners Management LP now owns 3,690,129 shares of the technology company's stock worth $148,454,000 after buying an additional 34,589 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of 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 buying an additional 1,209,856 shares in the last quarter. Penserra Capital Management LLC increased its holdings in shares of Rapid7 by 95.8% during the first quarter. Penserra Capital Management LLC now owns 1,880,084 shares of the technology company's stock worth $49,841,000 after buying an additional 919,955 shares in the last quarter. Finally, Shapiro Capital Management LLC increased its holdings in shares of Rapid7 by 295.9% during the fourth quarter. Shapiro Capital Management LLC now owns 1,290,945 shares of the technology company's stock worth $51,935,000 after buying an additional 964,899 shares in the last quarter. 95.66% of the stock is currently owned by institutional investors.

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.