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

Rapid7, Inc. (NASDAQ:RPD) 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 analysts have recently commented on RPD shares. Truist Financial cut their price objective on Rapid7 from $40.00 to $38.00 and set a “hold” rating on the stock in a report on Thursday, November 7th. Royal Bank of Canada lowered shares of Rapid7 from an “outperform” rating to a “sector perform” rating and cut their price target for the company from $50.00 to $40.00 in a report on Friday, September 20th. StockNews.com upgraded shares of Rapid7 from a “hold” rating to a “buy” rating in a research note on Friday, December 6th. DA Davidson raised their target price 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. Finally, JPMorgan Chase & Co. lifted their target price on shares of Rapid7 from $40.00 to $42.00 and gave the company a “neutral” rating in a report on Thursday, November 7th. Fourteen research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat.com, Rapid7 has an average rating of “Hold” and a consensus price target of $44.59.

Rapid7 Price Performance

The business has a fifty day moving average of $40.92 and a 200 day moving average of $38.88. The stock has a market cap of $2.54 billion, a PE ratio of 63.89 and a beta of 0.95.

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

Insider Transactions at Rapid7

In related news, Director Reeny Sondhi sold 3,663 shares of the company’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 sale, the director now directly owns 17,460 shares of the company’s stock, valued at approximately $698,400. This represents a 17.34 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On Rapid7

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Point72 Asset Management L.P. grew its position 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 acquiring an additional 2,719,791 shares during the last quarter. Geode Capital Management LLC boosted its stake in Rapid7 by 1.1% during the 3rd quarter. Geode Capital Management LLC now owns 1,462,007 shares of the technology company’s stock valued at $58,330,000 after purchasing an additional 15,287 shares during the period. Charles Schwab Investment Management Inc. grew its position in Rapid7 by 1.8% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 511,088 shares of the technology company’s stock worth $20,387,000 after purchasing an additional 9,190 shares during the last quarter. Fred Alger Management LLC increased its stake in shares of Rapid7 by 0.3% in the second quarter. Fred Alger Management LLC now owns 494,509 shares of the technology company’s stock valued at $21,378,000 after purchasing an additional 1,297 shares during the period. Finally, Thematics Asset Management raised its holdings in shares of Rapid7 by 33.0% during the third quarter. Thematics Asset Management now owns 399,000 shares of the technology company’s stock valued at $15,916,000 after buying an additional 99,000 shares during the last quarter. 95.66% of the stock is currently owned by institutional investors and hedge funds.

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.