Rapid7 (NASDAQ:RPD) Hits New 12-Month Low – Here’s What Happened

Rapid7, Inc. (NASDAQ:RPD)’s stock price hit a new 52-week low on Wednesday . The company traded as low as $10.32 and last traded at $10.3320, with a volume of 92867 shares trading hands. The stock had previously closed at $10.66.

Analyst Ratings Changes

Several analysts have commented on RPD shares. Canaccord Genuity Group dropped their target price on shares of Rapid7 from $32.00 to $27.00 and set a “buy” rating on the stock in a report on Wednesday, November 5th. JPMorgan Chase & Co. dropped their target price on Rapid7 from $22.00 to $20.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Truist Financial set a $14.00 price target on shares of Rapid7 in a research report on Tuesday, January 20th. Mizuho lowered their target price on shares of Rapid7 from $20.00 to $16.00 and set a “neutral” rating on the stock in a report on Wednesday, January 21st. Finally, Barclays downgraded Rapid7 from an “equal weight” rating to an “underweight” rating and reduced their target price for the stock from $18.00 to $15.00 in a research note on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $19.53.

Rapid7 Price Performance

The business’s 50-day simple moving average is $14.49 and its two-hundred day simple moving average is $17.37. The stock has a market cap of $710.26 million, a price-to-earnings ratio of 31.90 and a beta of 0.79. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.19 and a quick ratio of 1.19.

Rapid7 (NASDAQ:RPD) last issued its quarterly earnings data on Tuesday, November 4th. The technology company reported $0.57 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.12. Rapid7 had a return on equity of 67.30% and a net margin of 2.61%.The business had revenue of $217.96 million for the quarter, compared to analyst estimates of $216.14 million. During the same quarter in the previous year, the company posted $0.66 EPS. Rapid7’s quarterly revenue was up 1.5% compared to the same quarter last year. Research analysts expect that Rapid7, Inc. will post 0.35 earnings per share for the current year.

Insider Transactions at Rapid7

In related news, Director Marc Evan Brown acquired 3,000 shares of the stock in a transaction dated 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 transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Jana Partners Management, Lp acquired 41,545 shares of the business’s stock in a transaction that occurred on Friday, November 28th. The stock was bought at an average cost of $15.71 per share, for a total transaction of $652,671.95. Following the completion of the purchase, the director owned 6,760,149 shares of the company’s stock, valued at $106,201,940.79. This trade represents a 0.62% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders have purchased 67,345 shares of company stock worth $1,025,202. 2.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Royal Bank of Canada grew its position in shares of Rapid7 by 26.8% during the 1st quarter. Royal Bank of Canada now owns 326,910 shares of the technology company’s stock worth $8,667,000 after buying an additional 69,122 shares during the period. AQR Capital Management LLC acquired a new stake in Rapid7 in the 1st quarter valued at $424,000. Woodline Partners LP raised its holdings in Rapid7 by 48.0% during the first quarter. Woodline Partners LP now owns 86,712 shares of the technology company’s stock worth $2,299,000 after buying an additional 28,115 shares during the last quarter. Wealth Enhancement Advisory Services LLC acquired a new position in Rapid7 during the 2nd quarter valued at about $285,000. Finally, Mirae Asset Global Investments Co. Ltd. increased its holdings in Rapid7 by 117.3% during the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 22,918 shares of the technology company’s stock worth $530,000 after purchasing an additional 12,370 shares in the last quarter. 95.66% of the stock is owned by institutional investors and hedge funds.

About Rapid7

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.