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

Rapid7, Inc. (NASDAQ:RPD) shares gapped up prior to trading 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 changing hands.

Analyst Ratings Changes

RPD has been the subject of several recent analyst reports. Truist Financial reduced their price objective on shares of Rapid7 from $40.00 to $38.00 and set a “hold” rating for the company in a research report on Thursday, November 7th. DA Davidson lifted their price target on shares of Rapid7 from $35.00 to $39.00 and gave the company a “neutral” rating in a research note on Thursday, November 7th. JPMorgan Chase & Co. increased their price objective on shares of Rapid7 from $40.00 to $42.00 and gave the stock a “neutral” rating in a research report on Thursday, November 7th. Jefferies Financial Group started coverage on Rapid7 in a research note on Wednesday, October 16th. They set a “buy” rating and a $50.00 price target on the stock. Finally, StockNews.com upgraded Rapid7 from a “hold” rating to a “buy” rating in a report on Friday, December 6th. Fourteen investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $44.59.

Rapid7 Price Performance

The company’s fifty day simple moving average is $40.92 and its 200 day simple moving average is $38.85. The firm has a market capitalization of $2.62 billion, a PE ratio of 65.84 and a beta of 0.95.

Rapid7 (NASDAQ:RPD) last posted its earnings results on Wednesday, November 6th. The technology company reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.14. The firm had revenue of $214.65 million for the quarter, compared to the consensus estimate of $210.04 million. Rapid7 had a negative return on equity of 128.95% and a net margin of 5.65%. The business’s quarterly revenue was up 8.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.11 earnings per share. On average, analysts anticipate that Rapid7, Inc. will post 0.98 earnings per share for the current fiscal year.

Insider Transactions at Rapid7

In other news, Director Reeny Sondhi sold 3,663 shares of the firm’s stock in a transaction dated Monday, September 30th. The stock was sold at an average price of $40.00, for a total transaction of $146,520.00. Following the transaction, the director now directly owns 17,460 shares of the company’s stock, valued at approximately $698,400. This trade represents a 17.34 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On Rapid7

Institutional investors and hedge funds have recently bought and sold shares of the stock. Algert Global LLC raised its holdings in shares of Rapid7 by 158.6% during the second quarter. Algert Global LLC now owns 121,953 shares of the technology company’s stock valued at $5,272,000 after acquiring an additional 74,793 shares in the last quarter. Assenagon Asset Management S.A. purchased a new position in shares of Rapid7 during the third quarter valued at about $948,000. Connor Clark & Lunn Investment Management Ltd. raised its stake in 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 worth $3,429,000 after buying an additional 22,734 shares in the last quarter. Point72 Asset Management L.P. lifted its holdings in Rapid7 by 252.0% in 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 during the period. Finally, Maverick Capital Ltd. bought a new stake in Rapid7 during the 3rd quarter valued at approximately $1,679,000. 95.66% of the stock is currently owned by institutional investors.

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.