Rubrik (NYSE:RBRK) Shares Gap Down Following Weak Earnings

Key Points

• Rubrik's shares gapped down to $94.56 after reporting weak earnings, missing estimates with a loss of ($0.49) EPS against a consensus expectation of ($0.34).
• The company achieved 44.9% revenue growth year-over-year, totaling $309.86 million for the quarter, which surpasses the consensus estimate of $282.26 million.
• Despite the earnings miss, several brokerages have raised their target prices for Rubrik, with recommendations mostly indicating a buy rating from investment analysts.

Shares of Rubrik, Inc. (NYSE:RBRK - Get Free Report) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $98.50, but opened at $94.56. Rubrik shares last traded at $84.47, with a volume of 5,299,159 shares.

The company reported ($0.49) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.34) by ($0.15). The company had revenue of $309.86 million during the quarter, compared to the consensus estimate of $282.26 million. During the same quarter in the prior year, the company earned ($0.40) earnings per share. Rubrik's quarterly revenue was up 44.9% compared to the same quarter last year. Rubrik has set its Q3 2026 guidance at -0.180--0.160 EPS. FY 2026 guidance at -0.500--0.440 EPS.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on RBRK. CIBC upped their target price on Rubrik from $110.00 to $125.00 and gave the company an "outperformer" rating in a research report on Monday, June 9th. Guggenheim upped their target price on Rubrik from $105.00 to $108.00 and gave the company a "buy" rating in a research report on Friday, June 6th. Robert W. Baird upped their target price on Rubrik from $95.00 to $110.00 and gave the company an "outperform" rating in a research report on Friday, June 6th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $115.00 target price on shares of Rubrik in a research report on Wednesday. Finally, BMO Capital Markets reaffirmed an "outperform" rating and set a $110.00 target price (up from $77.00) on shares of Rubrik in a research report on Friday, June 6th. Fifteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, Rubrik currently has an average rating of "Moderate Buy" and an average price target of $104.06.

Insider Buying and Selling

In related news, CFO Kiran Kumar Choudary sold 3,500 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $88.26, for a total transaction of $308,910.00. Following the sale, the chief financial officer directly owned 515,595 shares of the company's stock, valued at $45,506,414.70. This trade represents a 0.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John Wendell Thompson sold 9,009 shares of Rubrik stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $87.83, for a total value of $791,260.47. Following the transaction, the director owned 998 shares of the company's stock, valued at approximately $87,654.34. This represents a 90.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 910,586 shares of company stock worth $82,305,628 over the last ninety days. 32.38% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Allworth Financial LP lifted its holdings in Rubrik by 1,030.8% in the second quarter. Allworth Financial LP now owns 294 shares of the company's stock valued at $26,000 after acquiring an additional 268 shares during the period. ST Germain D J Co. Inc. acquired a new position in Rubrik in the second quarter valued at approximately $27,000. Beacon Capital Management LLC acquired a new position in Rubrik in the second quarter valued at approximately $29,000. PNC Financial Services Group Inc. acquired a new position in Rubrik in the first quarter valued at approximately $30,000. Finally, Summit Securities Group LLC purchased a new position in Rubrik during the first quarter worth approximately $31,000. 49.54% of the stock is owned by institutional investors and hedge funds.

Rubrik Stock Down 13.8%

The company has a market cap of $16.43 billion, a PE ratio of -30.01 and a beta of 0.43. The business has a 50-day simple moving average of $88.15 and a 200-day simple moving average of $79.33.

Rubrik Company Profile

Rubrik, Inc provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions; data threat analytics; data security posture; and cyber recovery solutions. It serves financial, retail, trade, transportation, energy, industrial, healthcare and life science, education, technology, media, communications, and public sectors.

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