Rapid7 (NASDAQ:RPD) Shares Gap Up After Insider Buying Activity

Shares of Rapid7, Inc. (NASDAQ:RPD) gapped up prior to trading on Tuesday after an insider bought additional shares in the company. The stock had previously closed at $14.20, but opened at $14.86. Rapid7 shares last traded at $15.1160, with a volume of 329,452 shares changing hands.

Specifically, Director Marc Evan Brown bought 3,000 shares of the stock in a transaction dated Tuesday, November 25th. The shares were acquired at an average cost of $15.21 per share, for a total transaction of $45,630.00. Following the acquisition, the director directly owned 51,882 shares in the company, valued at approximately $789,125.22. This trade represents a 6.14% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Mike Burns purchased 2,000 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The stock was bought at an average cost of $13.80 per share, with a total value of $27,600.00. Following the acquisition, the director owned 5,000 shares of the company’s stock, valued at approximately $69,000. The trade was a 66.67% increase in their position. The disclosure for this purchase is available in the SEC filing. In related news, CEO Corey E. Thomas acquired 14,500 shares of the stock in a transaction on Monday, November 24th. The shares were bought at an average price of $13.82 per share, with a total value of $200,390.00. Following the completion of the purchase, the chief executive officer owned 595,066 shares of the company’s stock, valued at approximately $8,223,812.12. This represents a 2.50% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Analysts Set New Price Targets

A number of brokerages have issued reports on RPD. Truist Financial cut their target price on Rapid7 from $22.00 to $18.00 and set a “hold” rating for the company in a research note on Wednesday, November 5th. Weiss Ratings restated a “sell (d)” rating on shares of Rapid7 in a research report on Monday. Canaccord Genuity Group reduced their target price on shares of Rapid7 from $32.00 to $27.00 and set a “buy” rating on the stock in a research note on Wednesday, November 5th. Raymond James Financial dropped their price target on shares of Rapid7 from $40.00 to $30.00 and set an “outperform” rating for the company in a research note on Friday, August 8th. Finally, Barclays cut their price target on shares of Rapid7 from $21.00 to $18.00 and set an “equal weight” rating for the company in a report on Wednesday, November 5th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fifteen have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Rapid7 presently has an average rating of “Hold” and a consensus price target of $22.42.

Rapid7 Price Performance

The company has a debt-to-equity ratio of 9.84, a quick ratio of 1.36 and a current ratio of 1.36. The stock’s 50-day moving average is $17.36 and its two-hundred day moving average is $20.51. The stock has a market cap of $1.02 billion, a PE ratio of 37.83 and a beta of 0.94.

Rapid7 (NASDAQ:RPD) last released its quarterly earnings results on Tuesday, November 4th. The technology company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.12. Rapid7 had a return on equity of 149.12% and a net margin of 3.41%.The company had revenue of $217.96 million for the quarter, compared to analysts’ expectations of $216.14 million. During the same period in the prior year, the firm earned $0.66 earnings per share. The firm’s revenue was up 1.5% compared to the same quarter last year. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS. Q4 2025 guidance at 0.370-0.44 EPS. On average, equities analysts predict that Rapid7, Inc. will post 0.35 earnings per share for the current year.

Hedge Funds Weigh In On Rapid7

A number of hedge funds and other institutional investors have recently bought and sold shares of RPD. Y.D. More Investments Ltd increased its stake in Rapid7 by 12.0% during the first quarter. Y.D. More Investments Ltd now owns 5,839 shares of the technology company’s stock worth $171,000 after purchasing an additional 625 shares during the period. Prudential Financial Inc. boosted its stake in shares of Rapid7 by 8.8% in the second 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 during the period. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Rapid7 by 6.3% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 12,427 shares of the technology company’s stock valued at $221,000 after purchasing an additional 732 shares in the last quarter. CI Investments Inc. increased its stake in Rapid7 by 48.4% during the 3rd quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock worth $43,000 after buying an additional 744 shares during the period. Finally, Nordea Investment Management AB lifted its holdings in Rapid7 by 1.0% during the 2nd quarter. Nordea Investment Management AB now owns 78,294 shares of the technology company’s stock worth $1,808,000 after buying an additional 753 shares in the last quarter. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

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.