Rapid7 (NASDAQ:RPD) Reaches New 12-Month Low Following Analyst Downgrade

Shares of Rapid7, Inc. (NASDAQ:RPD) reached a new 52-week low during mid-day trading on Wednesday after Citigroup lowered their price target on the stock from $65.00 to $52.00. Citigroup currently has a buy rating on the stock. Rapid7 traded as low as $38.09 and last traded at $38.51, with a volume of 1860227 shares trading hands. The stock had previously closed at $45.80.

RPD has been the subject of several other research reports. JPMorgan Chase & Co. reduced their price objective on shares of Rapid7 from $61.00 to $60.00 and set a “neutral” rating for the company in a report on Thursday, February 8th. Truist Financial reduced their price objective on shares of Rapid7 from $50.00 to $45.00 and set a “hold” rating for the company in a report on Wednesday. UBS Group reduced their price objective on shares of Rapid7 from $70.00 to $65.00 and set a “buy” rating for the company in a report on Wednesday. Royal Bank of Canada reduced their price objective on shares of Rapid7 from $70.00 to $57.00 and set an “outperform” rating for the company in a report on Wednesday. Finally, Barclays dropped their price target on shares of Rapid7 from $60.00 to $49.00 and set an “equal weight” rating on the stock in a research report on Wednesday. Ten equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $52.13.

Insider Buying and Selling at Rapid7

In other Rapid7 news, COO Andrew F. Burton sold 31,727 shares of Rapid7 stock in a transaction dated Wednesday, March 13th. The stock was sold at an average price of $53.07, for a total transaction of $1,683,751.89. Following the transaction, the chief operating officer now owns 257,494 shares of the company’s stock, valued at approximately $13,665,206.58. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In other Rapid7 news, COO Andrew F. Burton sold 20,653 shares of the company’s stock in a transaction that occurred on Monday, April 8th. The stock was sold at an average price of $48.73, for a total transaction of $1,006,420.69. Following the completion of the sale, the chief operating officer now owns 236,841 shares of the company’s stock, valued at $11,541,261.93. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Andrew F. Burton sold 31,727 shares of the company’s stock in a transaction that occurred on Wednesday, March 13th. The stock was sold at an average price of $53.07, for a total value of $1,683,751.89. Following the sale, the chief operating officer now directly owns 257,494 shares of the company’s stock, valued at approximately $13,665,206.58. The disclosure for this sale can be found here. Company insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Hawk Ridge Capital Management LP raised its stake in shares of Rapid7 by 757.7% in the third quarter. Hawk Ridge Capital Management LP now owns 1,592,259 shares of the technology company’s stock valued at $72,894,000 after purchasing an additional 1,406,619 shares in the last quarter. First Trust Advisors LP raised its stake in Rapid7 by 49.2% during the fourth quarter. First Trust Advisors LP now owns 3,409,246 shares of the technology company’s stock worth $194,668,000 after acquiring an additional 1,124,429 shares in the last quarter. Norges Bank acquired a new position in Rapid7 during the fourth quarter worth $37,790,000. Mirae Asset Global Investments Co. Ltd. raised its stake in Rapid7 by 46.5% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,254,323 shares of the technology company’s stock worth $61,512,000 after acquiring an additional 397,968 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA raised its stake in Rapid7 by 40.3% during the third quarter. Massachusetts Financial Services Co. MA now owns 1,237,023 shares of the technology company’s stock worth $56,631,000 after acquiring an additional 355,192 shares in the last quarter. 95.66% of the stock is currently owned by institutional investors and hedge funds.

Rapid7 Price Performance

The firm has a 50 day simple moving average of $49.04 and a 200-day simple moving average of $52.71. The stock has a market capitalization of $2.37 billion, a price-to-earnings ratio of -15.14 and a beta of 1.01.

Rapid7 (NASDAQ:RPD) last announced its earnings results on Wednesday, February 7th. The technology company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.13 by $0.27. The company had revenue of $205.27 million for the quarter, compared to analysts’ expectations of $201.52 million. Rapid7 had a negative return on equity of 1.36% and a negative net margin of 19.19%. On average, sell-side analysts forecast that Rapid7, Inc. will post 0.86 earnings per share for the current fiscal year.

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.