Rapid7 (NASDAQ:RPD) Shares Gap Down on Disappointing Earnings

Rapid7, Inc. (NASDAQ:RPD) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $36.79, but opened at $35.30. Rapid7 shares last traded at $34.77, with a volume of 181,053 shares traded.

The technology company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.50 by ($0.38). Rapid7 had a net margin of 5.65% and a negative return on equity of 128.95%.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Scotiabank upped their price target on Rapid7 from $39.00 to $42.00 and gave the stock a “sector perform” rating in a research note on Tuesday, January 21st. UBS Group reduced their target price on shares of Rapid7 from $52.00 to $45.00 and set a “buy” rating for the company in a research note on Thursday. Piper Sandler dropped their price target on shares of Rapid7 from $42.00 to $40.00 and set a “neutral” rating on the stock in a research note on Thursday, November 7th. Robert W. Baird lowered their price objective on Rapid7 from $43.00 to $39.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, DA Davidson increased their target price on Rapid7 from $35.00 to $39.00 and gave the stock a “neutral” rating in a research note on Thursday, November 7th. Fifteen investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to MarketBeat.com, Rapid7 currently has a consensus rating of “Hold” and an average price target of $41.35.

Insider Buying and Selling

In other Rapid7 news, CEO Corey E. Thomas sold 100,000 shares of the business’s stock in a transaction on Tuesday, January 21st. The stock was sold at an average price of $39.38, for a total value of $3,938,000.00. Following the completion of the transaction, the chief executive officer now directly owns 431,469 shares in the company, valued at approximately $16,991,249.22. The trade was a 18.82 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 2.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rapid7

Hedge funds and other institutional investors have recently made changes to their positions in the business. Nordea Investment Management AB increased its position in Rapid7 by 100.8% during the 4th quarter. Nordea Investment Management AB now owns 75,109 shares of the technology company’s stock worth $3,030,000 after purchasing an additional 37,708 shares in the last quarter. Assenagon Asset Management S.A. purchased a new stake in shares of Rapid7 in the third quarter worth about $948,000. Connor Clark & Lunn Investment Management Ltd. grew its stake in shares of Rapid7 by 36.0% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 85,951 shares of the technology company’s stock valued at $3,429,000 after buying an additional 22,734 shares in the last quarter. Stifel Financial Corp purchased a new stake in shares of Rapid7 during the 3rd quarter valued at about $1,006,000. Finally, Maverick Capital Ltd. acquired a new position in Rapid7 during the 3rd quarter worth approximately $1,679,000. Hedge funds and other institutional investors own 95.66% of the company’s stock.

Rapid7 Trading Down 5.7 %

The stock has a market capitalization of $2.19 billion, a price-to-earnings ratio of 55.07 and a beta of 0.96. The firm has a 50-day moving average of $39.57 and a 200 day moving average of $38.87.

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.