Rapid7 (NASDAQ:RPD) Issues Quarterly Earnings Results

Rapid7 (NASDAQ:RPD) issued its earnings results on Tuesday. The technology company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.04, FiscalAI reports. Rapid7 had a net margin of 2.61% and a return on equity of 67.30%. The company had revenue of $217.39 million during the quarter, compared to analysts’ expectations of $215.17 million.

Rapid7 Trading Down 3.4%

RPD stock traded down $0.37 on Tuesday, hitting $10.39. 3,075,621 shares of the company were exchanged, compared to its average volume of 1,211,074. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.19 and a quick ratio of 1.19. The stock has a market capitalization of $680.34 million, a price-to-earnings ratio of 30.56 and a beta of 0.79. Rapid7 has a twelve month low of $10.20 and a twelve month high of $38.47. The business’s fifty day moving average is $14.11 and its two-hundred day moving average is $17.03.

Insider Activity

In other news, Director Marc Evan Brown purchased 3,000 shares of the company’s stock in a transaction on Tuesday, November 25th. The stock was bought at an average cost of $15.21 per share, for a total transaction of $45,630.00. Following the completion of the purchase, the director directly owned 51,882 shares of the company’s stock, valued at $789,125.22. The trade was a 6.14% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Corey E. Thomas acquired 14,500 shares of Rapid7 stock in a transaction dated Monday, November 24th. The stock was purchased at an average cost of $13.82 per share, for a total transaction of $200,390.00. Following the completion of the purchase, the chief executive officer directly owned 595,066 shares in the company, valued at approximately $8,223,812.12. This represents a 2.50% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 67,345 shares of company stock valued at $1,025,202 in the last 90 days. 2.40% of the stock is owned by corporate insiders.

Institutional Trading of Rapid7

A number of institutional investors have recently added to or reduced their stakes in the business. Prudential Financial Inc. raised its position in shares of Rapid7 by 8.8% in the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock valued at $197,000 after purchasing an additional 690 shares in the last quarter. Headlands Technologies LLC acquired a new stake in Rapid7 in the second quarter valued at $44,000. Swiss National Bank boosted its stake in Rapid7 by 1.8% during the 3rd quarter. Swiss National Bank now owns 112,000 shares of the technology company’s stock valued at $2,100,000 after acquiring an additional 2,000 shares during the last quarter. Brevan Howard Capital Management LP grew its holdings in Rapid7 by 12.6% during the 2nd quarter. Brevan Howard Capital Management LP now owns 28,719 shares of the technology company’s stock worth $664,000 after acquiring an additional 3,209 shares in the last quarter. Finally, Canada Pension Plan Investment Board grew its holdings in Rapid7 by 13.4% during the 2nd quarter. Canada Pension Plan Investment Board now owns 31,300 shares of the technology company’s stock worth $724,000 after acquiring an additional 3,700 shares in the last quarter. 95.66% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

RPD has been the topic of a number of research reports. Susquehanna set a $15.00 price objective on shares of Rapid7 in a research note on Thursday, November 6th. JPMorgan Chase & Co. lowered their price target on shares of Rapid7 from $22.00 to $20.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Barclays downgraded Rapid7 from an “equal weight” rating to an “underweight” rating and cut their price objective for the stock from $18.00 to $15.00 in a research report on Monday, January 5th. Jefferies Financial Group reduced their target price on Rapid7 from $18.00 to $13.00 and set a “hold” rating on the stock in a research note on Monday, February 2nd. Finally, Citigroup downgraded Rapid7 from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $25.00 to $15.00 in a research report on Monday, January 12th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fourteen have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $19.53.

Rapid7 Company Profile

Rapid7, Inc is a publicly traded cybersecurity company headquartered in Boston, Massachusetts. Since its founding in 2000, the company has specialized in delivering cloud-based security data and analytics solutions designed to help organizations detect, investigate, and remediate cyber threats. Rapid7 operates under the NASDAQ symbol “RPD” and serves a broad range of industries, including technology, financial services, healthcare, retail, and the public sector.

The core of Rapid7’s offering is its Insight platform, a unified, cloud-native security operations and analytics suite.