Rapid7 (NASDAQ:RPD) Shares Gap Up – Should You Buy?

Rapid7, Inc. (NASDAQ:RPD)’s share price gapped up before the market opened 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.

Analyst Upgrades and Downgrades

Several research firms have recently commented on RPD. JPMorgan Chase & Co. cut their price target on Rapid7 from $46.00 to $39.00 and set a “neutral” rating for the company in a research note on Friday, August 2nd. UBS Group dropped their price objective on Rapid7 from $65.00 to $59.00 and set a “buy” rating on the stock in a report on Wednesday, August 7th. Piper Sandler dropped their price objective on Rapid7 from $45.00 to $42.00 and set a “neutral” rating on the stock in a report on Wednesday, August 7th. Canaccord Genuity Group raised Rapid7 from a “hold” rating to a “buy” rating and lowered their target price for the company from $52.00 to $43.00 in a report on Wednesday, August 7th. Finally, Scotiabank lowered their target price on Rapid7 from $45.00 to $41.00 and set a “sector perform” rating on the stock in a report on Wednesday, August 7th. Fourteen investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $46.35.

Rapid7 Stock Performance

The company has a market capitalization of $2.55 billion, a PE ratio of -47.95 and a beta of 0.97. The business has a fifty day moving average price of $37.03 and a 200 day moving average price of $39.56.

Rapid7 (NASDAQ:RPD) last posted its earnings results on Tuesday, August 6th. The technology company reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 analyst estimates of $204.04 million. During the same quarter last year, the firm earned ($0.33) earnings per share. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. Research analysts forecast that Rapid7, Inc. will post 0.8 earnings per share for the current fiscal year.

Insider Buying and Selling at Rapid7

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

Institutional Trading of Rapid7

Several hedge funds have recently made changes to their positions in RPD. Point72 Asset Management L.P. lifted its holdings in shares of Rapid7 by 252.0% in the 2nd quarter. Point72 Asset Management L.P. now owns 3,799,119 shares of the technology company’s stock worth $164,236,000 after purchasing an additional 2,719,791 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Rapid7 by 46.5% in 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. Cannae Holdings Inc. bought a new stake in shares of Rapid7 in the 2nd quarter worth approximately $15,130,000. SG Americas Securities LLC lifted its holdings in shares of Rapid7 by 7,688.6% in the 2nd quarter. SG Americas Securities LLC now owns 165,196 shares of the technology company’s stock worth $7,141,000 after purchasing an additional 163,075 shares during the last quarter. Finally, 272 Capital LP bought a new stake in Rapid7 during the 2nd quarter valued at $6,979,000. Institutional investors own 95.66% of the company’s stock.

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.