Shares of Rapid7, Inc. (NASDAQ:RPD – Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $15.04, but opened at $17.25. Rapid7 shares last traded at $15.9120, with a volume of 440,490 shares trading hands.
The technology company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.46 by $0.14. The company had revenue of $212.40 million during the quarter, compared to analysts’ expectations of $209.05 million. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. The business’s revenue was down 2.5% on a year-over-year basis. During the same quarter last year, the business earned $0.57 EPS.
Key Headlines Impacting Rapid7
Here are the key news stories impacting Rapid7 this week:
- Positive Sentiment: Rapid7 earned adjusted EPS of $0.60, topping estimates of $0.46, and generated $212.4 million in revenue versus forecasts of $209.05 million. The earnings and sales beats helped lift the stock after the report. Earnings results
- Neutral Sentiment: The company expects fourth-quarter adjusted EPS of $0.53 to $0.55. Whether that outlook is strong enough to sustain the post-earnings optimism depends on market expectations. Fourth-quarter outlook
- Neutral Sentiment: A Yahoo Finance article raises the question of whether Rapid7 remains overvalued after its results; the provided article details do not include a valuation conclusion. Valuation analysis
- Negative Sentiment: Despite beating estimates, quarterly revenue was down 2.5% year over year, a sign that growth remains a concern. Q3 earnings coverage
Analyst Ratings Changes
A number of equities research analysts have weighed in on RPD shares. Jefferies Financial Group reaffirmed a “hold” rating and issued a $12.00 price objective on shares of Rapid7 in a report on Tuesday, August 11th. Mizuho raised their price target on Rapid7 from $11.00 to $13.00 and gave the company a “neutral” rating in a report on Thursday, October 15th. UBS Group raised their price target on Rapid7 from $7.00 to $12.00 and gave the company a “neutral” rating in a report on Tuesday, August 11th. Canaccord Genuity Group lifted their price target on Rapid7 from $7.00 to $14.00 and gave the company a “hold” rating in a research note on Tuesday, August 11th. Finally, JPMorgan Chase & Co. lowered Rapid7 from a “neutral” rating to an “underweight” rating and set a $12.00 price objective on the stock. in a report on Tuesday, September 15th. One research analyst has rated the stock with a Buy rating, seventeen have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $12.09.
Get Our Latest Report on Rapid7
Institutional Investors Weigh In On Rapid7
A number of hedge funds and other institutional investors have recently modified their holdings of RPD. Bank of America Corp DE acquired a new stake in shares of Rapid7 in the 2nd quarter worth approximately $6,861,000. Bank of New York Mellon Corp acquired a new position in Rapid7 during the second quarter worth $3,844,000. Man Group plc acquired a new position in Rapid7 during the second quarter worth $3,409,000. Quantinno Capital Management LP boosted its position in Rapid7 by 776.1% during the first quarter. Quantinno Capital Management LP now owns 260,359 shares of the technology company’s stock worth $1,435,000 after purchasing an additional 230,641 shares in the last quarter. Finally, Deutsche Bank AG purchased a new stake in Rapid7 during the second quarter worth $1,751,000. 95.66% of the stock is currently owned by institutional investors and hedge funds.
Rapid7 Price Performance
The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.50. The company has a market cap of $1.10 billion, a price-to-earnings ratio of 51.88 and a beta of 0.90. The company has a fifty day simple moving average of $13.07 and a two-hundred day simple moving average of $9.55.
Rapid7 Company Profile
Rapid7, Inc (NASDAQ:RPD) is a cybersecurity company that provides technology and services to help organizations identify, assess and manage security risk across their IT environments. Its offerings are designed to support security operations, vulnerability management, cloud security, application security and incident response.
The company’s product portfolio includes the Insight platform and solutions such as InsightVM for vulnerability risk management, InsightIDR for security detection and response, InsightCloudSec for cloud security and compliance, and InsightAppSec for application security testing.
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