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

Rapid7, Inc. (NASDAQ:RPD) gapped down before the market opened 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 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.38). Rapid7 had a negative return on equity of 128.95% and a net margin of 5.65%.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. Stifel Nicolaus cut their target price on shares of Rapid7 from $42.00 to $38.00 and set a “hold” rating on the stock in a report on Thursday. Jefferies Financial Group lowered their price target on shares of Rapid7 from $50.00 to $45.00 and set a “buy” rating for the company in a research report on Thursday. UBS Group dropped their price objective on shares of Rapid7 from $52.00 to $45.00 and set a “buy” rating on the stock in a report on Thursday. Truist Financial reduced their target price on shares of Rapid7 from $38.00 to $35.00 and set a “hold” rating for the company in a research note on Thursday. Finally, Robert W. Baird cut their price target on Rapid7 from $43.00 to $39.00 and set a “neutral” rating on the stock in a report on Thursday. 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, the company currently has a consensus rating of “Hold” and a consensus price target of $41.35.

Insider Transactions at Rapid7

In related news, CEO Corey E. Thomas sold 100,000 shares of Rapid7 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 transaction, the chief executive officer now directly owns 431,469 shares in the company, valued at $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 available through this link. Corporate insiders own 2.60% of the company’s stock.

Institutional Trading of Rapid7

A number of institutional investors have recently bought and sold shares of RPD. Vanguard Group Inc. lifted its stake in Rapid7 by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 8,618,480 shares of the technology company’s stock valued at $346,721,000 after acquiring an additional 60,095 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Rapid7 by 1.1% in 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 last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Rapid7 by 1.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 520,006 shares of the technology company’s stock worth $20,920,000 after purchasing an additional 8,918 shares in the last quarter. Thematics Asset Management increased its position in Rapid7 by 33.0% during the third quarter. Thematics Asset Management now owns 399,000 shares of the technology company’s stock worth $15,916,000 after buying an additional 99,000 shares during the last quarter. Finally, Raymond James Financial Inc. bought a new position in Rapid7 during the fourth quarter valued at about $12,050,000. Institutional investors and hedge funds own 95.66% of the company’s stock.

Rapid7 Stock Performance

The stock has a 50 day moving average of $39.57 and a two-hundred day moving average of $38.87. The firm has a market capitalization of $2.19 billion, a P/E ratio of 55.07 and a beta of 0.96.

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.