Rapid7 (NASDAQ:RPD) Shares Gap Up – Here’s Why

Rapid7, Inc. (NASDAQ:RPD) shares gapped up before the market opened on Wednesday . The stock had previously closed at $39.04, but opened at $40.16. Rapid7 shares last traded at $41.39, with a volume of 321,722 shares trading hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Jefferies Financial Group initiated coverage on shares of Rapid7 in a research note on Wednesday, October 16th. They set a “buy” rating and a $50.00 price objective on the stock. StockNews.com upgraded shares of Rapid7 from a “hold” rating to a “buy” rating in a research report on Friday, December 6th. JPMorgan Chase & Co. increased their price objective on shares of Rapid7 from $40.00 to $42.00 and gave the company a “neutral” rating in a report on Thursday, November 7th. Piper Sandler decreased their price target on Rapid7 from $42.00 to $40.00 and set a “neutral” rating for the company in a research note on Thursday, November 7th. Finally, Truist Financial decreased their target price on Rapid7 from $40.00 to $38.00 and set a “hold” rating for the company in a research note on Thursday, November 7th. Fourteen research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $44.59.

Rapid7 Price Performance

The company has a market capitalization of $2.54 billion, a price-to-earnings ratio of 63.89 and a beta of 0.95. The business has a fifty day moving average price of $40.92 and a 200 day moving average price of $38.88.

Rapid7 (NASDAQ:RPD) last released its earnings results on Wednesday, November 6th. The technology company reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.52 by $0.14. The business had revenue of $214.65 million during the quarter, compared to analysts’ expectations of $210.04 million. Rapid7 had a net margin of 5.65% and a negative return on equity of 128.95%. The firm’s revenue was up 8.0% on a year-over-year basis. During the same quarter last year, the company earned $0.11 earnings per share. As a group, sell-side analysts predict that Rapid7, Inc. will post 0.98 earnings per share for the current fiscal year.

Insider Activity

In related 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 transaction, the director now owns 17,460 shares in the company, valued at $698,400. This trade represents a 17.34 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.60% of the company’s stock.

Institutional Investors Weigh In On Rapid7

A number of hedge funds have recently made changes to their positions in RPD. Point72 Asset Management L.P. increased its holdings in shares of 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 worth $164,236,000 after buying an additional 2,719,791 shares in the last quarter. Cannae Holdings Inc. acquired a new position in shares of Rapid7 during the second quarter worth approximately $15,130,000. Invenomic Capital Management LP bought a new position in Rapid7 in the 3rd quarter worth approximately $6,647,000. 272 Capital LP acquired a new position in Rapid7 during the 2nd quarter worth $6,979,000. Finally, Susquehanna Fundamental Investments LLC acquired a new position in Rapid7 during the 2nd quarter worth $6,106,000. Institutional investors and hedge funds own 95.66% of the company’s stock.

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.