Rapid7 (NASDAQ:RPD) Sets New 52-Week 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)'s stock price reached a new 52-week low on Tuesday after Raymond James Financial lowered their price target on the stock from $40.00 to $30.00. Raymond James Financial currently has an outperform 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.

A number of other analysts have also weighed in on RPD. Canaccord Genuity Group cut their price objective on shares of Rapid7 from $43.00 to $39.00 and set a "hold" rating on the stock in a research note on Wednesday, May 14th. Mizuho decreased their price objective on Rapid7 from $27.00 to $25.00 and set a "neutral" rating for the company in a report on Friday. Stifel Nicolaus dropped their target price on Rapid7 from $29.00 to $22.00 and set a "hold" rating on the stock in a report on Friday. Wall Street Zen upgraded Rapid7 from a "hold" rating to a "buy" rating in a research report on Sunday, August 3rd. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Rapid7 in a research note on Tuesday, May 13th. One analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $30.78.

Institutional Investors Weigh In On Rapid7

Several large investors have recently bought and sold shares of the company. JANA Partners Management LP lifted its stake in Rapid7 by 0.9% in the 4th quarter. JANA Partners Management LP now owns 3,690,129 shares of the technology company's stock worth $148,454,000 after purchasing an additional 34,589 shares in the last quarter. Penserra Capital Management LLC grew its holdings in Rapid7 by 45.3% in the 2nd quarter. Penserra Capital Management LLC now owns 2,731,192 shares of the technology company's stock valued at $63,172,000 after buying an additional 851,108 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Rapid7 by 112.4% during the 1st 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. Geode Capital Management LLC grew its stake in shares of Rapid7 by 1.7% in the 2nd quarter. Geode Capital Management LLC now owns 1,538,756 shares of the technology company's stock valued at $35,596,000 after buying an additional 25,546 shares during the period. Finally, Shapiro Capital Management LLC raised its position in shares of Rapid7 by 295.9% during the 4th quarter. Shapiro Capital Management LLC now owns 1,290,945 shares of the technology company's stock valued at $51,935,000 after buying an additional 964,899 shares during the period. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

Rapid7 Stock Down 5.1%

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 has a market capitalization of $1.21 billion, a price-to-earnings ratio of 48.17 and a beta of 0.96. The business has a fifty day moving average of $22.97 and a 200 day moving average of $26.63.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its earnings results on Thursday, August 7th. The technology company reported $0.58 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.14. Rapid7 had a net margin of 3.42% and a return on equity of 2,043.18%. The company had revenue of $214.19 million for the quarter, compared to analysts' expectations of $212.17 million. During the same quarter in the prior year, the company posted $0.58 earnings per share. Rapid7's revenue for the quarter was up 3.0% compared to the same quarter last year. As a group, equities analysts predict that Rapid7, Inc. will post 0.35 earnings per share for the current 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.