Rapid7 (NASDAQ:RPD) Sets New 1-Year Low on Analyst Downgrade

Key Points

• Rapid7 reached a new 52-week low of $20.22 after JPMorgan Chase & Co. downgraded its price target from $28.00 to $23.00, maintaining a neutral rating on the stock.
• Analysts have placed multiple ratings on Rapid7, with one sell, thirteen holds, six buys, and one strong buy, reflecting a consensus rating of "Hold" and an average price target of $32.84.
• The company reported earnings per share of $0.49 in its recent quarterly earnings, surpassing analysts' expectations, while posting a 2.5% revenue increase from the previous year.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) hit a new 52-week low on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $28.00 to $23.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Rapid7 traded as low as $20.22 and last traded at $20.74, with a volume of 573682 shares traded. The stock had previously closed at $20.36.

Several other research analysts also recently commented on RPD. DA Davidson reissued an "underperform" rating and set a $21.00 price objective (down previously from $29.00) on shares of Rapid7 in a report on Tuesday, May 13th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Rapid7 in a research report on Tuesday, May 13th. Raymond James Financial lowered their target price on shares of Rapid7 from $45.00 to $40.00 and set an "outperform" rating for the company in a research note on Tuesday, May 13th. Barclays decreased their price objective on Rapid7 from $26.00 to $25.00 and set an "equal weight" rating for the company in a report on Tuesday, May 13th. Finally, Susquehanna dropped their target price on Rapid7 from $40.00 to $30.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 13th. One equities research analyst has rated the stock with a sell rating, thirteen have issued a hold rating, six have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $32.84.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. JANA Partners Management LP lifted its position in Rapid7 by 0.9% during the fourth quarter. JANA Partners Management LP now owns 3,690,129 shares of the technology company's stock valued at $148,454,000 after purchasing an additional 34,589 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Rapid7 by 112.4% in 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 acquiring an additional 1,209,856 shares during the period. Penserra Capital Management LLC raised its position in shares of Rapid7 by 95.8% in the first quarter. Penserra Capital Management LLC now owns 1,880,084 shares of the technology company's stock worth $49,841,000 after acquiring an additional 919,955 shares during the period. Shapiro Capital Management LLC raised its position in shares of Rapid7 by 295.9% in the fourth quarter. Shapiro Capital Management LLC now owns 1,290,945 shares of the technology company's stock worth $51,935,000 after acquiring an additional 964,899 shares during the period. Finally, First Trust Advisors LP raised its position in shares of Rapid7 by 6.8% in the fourth quarter. First Trust Advisors LP now owns 1,255,731 shares of the technology company's stock worth $50,518,000 after acquiring an additional 79,836 shares during the period. 95.66% of the stock is currently owned by institutional investors and hedge funds.

Rapid7 Stock Performance

The business's 50-day simple moving average is $23.14 and its two-hundred day simple moving average is $26.86. The firm has a market cap of $1.33 billion, a price-to-earnings ratio of 53.18 and a beta of 0.96. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 16.87.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings data on Monday, May 12th. The technology company reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.37 by $0.12. The business had revenue of $210.25 million during the quarter, compared to the consensus estimate of $208.25 million. Rapid7 had a net margin of 3.42% and a return on equity of 2,043.18%. The company's revenue was up 2.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.55 earnings per share. As a group, sell-side analysts expect that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal year.

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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