Rapid7 (NASDAQ:RPD) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Zacks Research has upgraded Rapid7 from a "hold" rating to a "strong-buy" rating, indicating positive investor sentiment.
• Despite recent price cuts from other analysts, the stock currently has a consensus target price of $26.56 with a mix of ratings including two "Strong Buy" and four "Buy" designations.
• In its latest earnings report, Rapid7 posted $0.58 earnings per share, surpassing estimates, with a 3% year-over-year revenue increase of $214.19 million.

Rapid7 (NASDAQ:RPD - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Tuesday,Zacks.com reports.

A number of other research analysts also recently commented on the stock. Scotiabank reduced their price objective on shares of Rapid7 from $29.00 to $20.00 and set a "sector perform" rating on the stock in a research note on Monday, August 11th. Wall Street Zen upgraded shares of Rapid7 from a "hold" rating to a "buy" rating in a research note on Sunday, August 3rd. UBS Group reduced their price objective on shares of Rapid7 from $39.00 to $34.00 and set a "buy" rating on the stock in a research note on Friday, August 8th. Citigroup reduced their price objective on shares of Rapid7 from $35.00 to $30.00 and set a "buy" rating on the stock in a research note on Monday, August 18th. Finally, Raymond James Financial reduced their price objective on shares of Rapid7 from $40.00 to $30.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $26.56.

Rapid7 Price Performance

RPD opened at $18.37 on Tuesday. The company has a fifty day simple moving average of $19.76 and a 200 day simple moving average of $22.17. The firm has a market cap of $1.19 billion, a price-to-earnings ratio of 44.81 and a beta of 0.92. Rapid7 has a twelve month low of $17.75 and a twelve month high of $44.48. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 9.84.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share for the quarter, beating analysts' consensus estimates of $0.44 by $0.14. The business had revenue of $214.19 million during the quarter, compared to analyst estimates of $212.17 million. Rapid7 had a net margin of 3.41% and a return on equity of 149.12%. The business's revenue was up 3.0% on a year-over-year basis. During the same period last year, the business earned $0.58 EPS. Rapid7 has set its FY 2025 guidance at 1.900-2.030 EPS. Q3 2025 guidance at 0.440-0.470 EPS. Equities research analysts expect that Rapid7 will post 0.35 EPS for the current fiscal year.

Insider Transactions at Rapid7

In other Rapid7 news, Director Jana Partners Management, Lp purchased 358,738 shares of Rapid7 stock in a transaction dated Monday, August 11th. The shares were bought at an average cost of $18.23 per share, for a total transaction of $6,539,793.74. Following the transaction, the director owned 6,105,148 shares in the company, valued at $111,296,848.04. This represents a 6.24% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Scott M. Murphy sold 1,370 shares of the firm's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $20.25, for a total transaction of $27,742.50. Following the completion of the transaction, the chief accounting officer owned 27,592 shares in the company, valued at approximately $558,738. The trade was a 4.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders bought 772,194 shares of company stock worth $15,135,356. Insiders own 2.40% of the company's stock.

Institutional Trading of Rapid7

Several hedge funds have recently bought and sold shares of RPD. GAMMA Investing LLC lifted its position in Rapid7 by 2,069.2% in the 1st quarter. GAMMA Investing LLC now owns 5,488 shares of the technology company's stock valued at $145,000 after purchasing an additional 5,235 shares during the last quarter. SG Americas Securities LLC lifted its position in Rapid7 by 180.3% in the 1st quarter. SG Americas Securities LLC now owns 27,768 shares of the technology company's stock valued at $736,000 after purchasing an additional 17,860 shares during the last quarter. Asset Management One Co. Ltd. lifted its position in Rapid7 by 4.2% in the 1st quarter. Asset Management One Co. Ltd. now owns 125,093 shares of the technology company's stock valued at $3,316,000 after purchasing an additional 5,057 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its position in Rapid7 by 18.5% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 10,548 shares of the technology company's stock valued at $291,000 after purchasing an additional 1,648 shares during the last quarter. Finally, New York State Teachers Retirement System bought a new stake in Rapid7 in the 1st quarter valued at about $29,000. 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.

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