Rapid7 (NASDAQ:RPD) Shares Down 8.5% After Analyst Downgrade

Key Points

• Rapid7 Inc. shares fell 8.5% after Royal Bank of Canada downgraded its price target from $27.00 to $23.00, maintaining a sector perform rating.
• Multiple analysts, including Canaccord Genuity and JPMorgan, have also lowered their price targets on Rapid7, contributing to its current consensus "Hold" rating.
• Despite recent price downgrades, Rapid7 reported earnings of $0.58 per share, exceeding estimates and showing a 3% year-over-year revenue increase.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) shares fell 8.5% during mid-day trading on Friday 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 $18.11 and last traded at $18.14. 1,337,995 shares changed hands during mid-day trading, an increase of 57% from the average session volume of 852,749 shares. The stock had previously closed at $19.82.

RPD has been the topic of several other research reports. Piper Sandler cut their target price on Rapid7 from $35.00 to $30.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 13th. Robert W. Baird upped their price objective on Rapid7 from $26.00 to $28.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 13th. Mizuho dropped their price objective on Rapid7 from $27.00 to $25.00 and set a "neutral" rating on the stock in a research note on Friday. Jefferies Financial Group set a $27.00 price objective on Rapid7 and gave the stock a "buy" rating in a research note on Friday. Finally, Susquehanna dropped their price objective on Rapid7 from $30.00 to $18.00 and set a "neutral" rating on the stock in a research note on Monday. One investment analyst has rated the stock with a sell rating, thirteen have given a hold rating, five have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $27.67.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Teacher Retirement System of Texas increased its position in Rapid7 by 24.1% during the 1st quarter. Teacher Retirement System of Texas now owns 54,091 shares of the technology company's stock worth $1,434,000 after buying an additional 10,487 shares during the period. Mirae Asset Global Investments Co. Ltd. increased its position in Rapid7 by 18.5% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 10,548 shares of the technology company's stock worth $291,000 after buying an additional 1,648 shares during the period. New York State Teachers Retirement System bought a new position in Rapid7 during the 1st quarter worth $29,000. Invesco Ltd. grew its holdings in shares of Rapid7 by 5.4% during the 4th quarter. Invesco Ltd. now owns 36,487 shares of the technology company's stock worth $1,468,000 after purchasing an additional 1,860 shares in the last quarter. Finally, Principal Financial Group Inc. grew 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 purchasing an additional 609 shares in the last quarter. Institutional investors own 95.66% of the company's stock.

Rapid7 Trading Up 6.6%

The company has a market capitalization of $1.29 billion, a price-to-earnings ratio of 48.94 and a beta of 0.96. The company has a debt-to-equity ratio of 16.87, a quick ratio of 1.24 and a current ratio of 1.24. The firm has a fifty day moving average price of $22.78 and a 200-day moving average price of $26.17.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.14. The company had revenue of $214.19 million for the quarter, compared to analyst estimates of $212.17 million. Rapid7 had a return on equity of 269.59% and a net margin of 3.41%. Rapid7's quarterly revenue was up 3.0% on a year-over-year basis. During the same period in the prior year, the firm posted $0.58 EPS. As a group, equities analysts anticipate that Rapid7, Inc. will post 0.35 EPS 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.