Rapid7 (NASDAQ:RPD) Shares Gap Up – What’s Next?

Rapid7, Inc. (NASDAQ:RPD)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $40.28, but opened at $41.59. Rapid7 shares last traded at $40.56, with a volume of 195,446 shares traded.

Analyst Ratings Changes

RPD has been the topic of several analyst reports. Jefferies Financial Group began coverage on Rapid7 in a report on Wednesday. They set a “buy” rating and a $50.00 price objective on the stock. Royal Bank of Canada lowered shares of Rapid7 from an “outperform” rating to a “sector perform” rating and decreased their price objective for the stock from $50.00 to $40.00 in a report on Friday, September 20th. Morgan Stanley reiterated an “equal weight” rating and issued a $46.00 price target on shares of Rapid7 in a research note on Wednesday, July 10th. JPMorgan Chase & Co. lowered their price objective on Rapid7 from $46.00 to $39.00 and set a “neutral” rating for the company in a report on Friday, August 2nd. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Rapid7 in a research report on Wednesday, August 7th. Fourteen equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Rapid7 has an average rating of “Hold” and a consensus target price of $46.35.

Rapid7 Price Performance

The business has a 50 day simple moving average of $37.17 and a 200 day simple moving average of $39.57. The stock has a market cap of $2.52 billion, a PE ratio of -47.85 and a beta of 0.97.

Rapid7 (NASDAQ:RPD) last announced its quarterly earnings results on Tuesday, August 6th. The technology company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.52 by $0.06. Rapid7 had a negative return on equity of 67.88% and a negative net margin of 5.64%. The business had revenue of $207.99 million during the quarter, compared to analysts’ expectations of $204.04 million. The firm’s quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.33) EPS. As a group, sell-side analysts forecast that Rapid7, Inc. will post 0.8 earnings per share for the current fiscal year.

Insider Transactions at Rapid7

In related news, Director Reeny Sondhi sold 3,663 shares of Rapid7 stock in a transaction on Monday, September 30th. The shares were sold at an average price of $40.00, for a total value of $146,520.00. Following the completion of the sale, the director now owns 17,460 shares of the company’s stock, valued at approximately $698,400. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 2.60% of the stock is currently owned by company insiders.

Institutional Trading of Rapid7

Several large investors have recently modified their holdings of RPD. Point72 Asset Management L.P. boosted its holdings in Rapid7 by 252.0% during the second quarter. Point72 Asset Management L.P. now owns 3,799,119 shares of the technology company’s stock valued at $164,236,000 after acquiring an additional 2,719,791 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its position in shares of Rapid7 by 46.5% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,254,323 shares of the technology company’s stock worth $61,512,000 after purchasing an additional 397,968 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Rapid7 by 3.9% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 503,468 shares of the technology company’s stock valued at $24,691,000 after purchasing an additional 18,907 shares during the period. Fred Alger Management LLC grew its holdings in Rapid7 by 0.3% in the 2nd quarter. Fred Alger Management LLC now owns 494,509 shares of the technology company’s stock valued at $21,378,000 after buying an additional 1,297 shares during the last quarter. Finally, Cannae Holdings Inc. bought a new position in Rapid7 in the 2nd quarter worth approximately $15,130,000. 95.66% of the stock is owned by institutional investors.

Rapid7 Company Profile

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.