Rapid7 (NASDAQ:RPD) Stock Rating Lowered by Royal Bank of Canada

Royal Bank of Canada lowered shares of Rapid7 (NASDAQ:RPD) from an outperform rating to a sector perform rating in a research report sent to investors on Friday, Marketbeat Ratings reports. The brokerage currently has $40.00 price target on the technology company’s stock, down from their previous price target of $50.00.

Other equities research analysts also recently issued reports about the stock. UBS Group cut their target price on shares of Rapid7 from $65.00 to $59.00 and set a buy rating on the stock in a research note on Wednesday, August 7th. JPMorgan Chase & Co. decreased their target price on Rapid7 from $46.00 to $39.00 and set a neutral rating for the company in a report on Friday, August 2nd. Baird R W downgraded Rapid7 from a strong-buy rating to a hold rating in a report on Thursday, August 1st. Morgan Stanley reiterated an equal weight rating and issued a $46.00 price objective on shares of Rapid7 in a research note on Wednesday, July 10th. Finally, Robert W. Baird lowered shares of Rapid7 from an outperform rating to a neutral rating and cut their target price for the stock from $56.00 to $45.00 in a research note on Thursday, August 1st. Fourteen equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Rapid7 has an average rating of Hold and a consensus target price of $46.13.

Rapid7 Stock Performance

Rapid7 stock opened at $35.78 on Friday. The company’s 50 day simple moving average is $36.94 and its 200-day simple moving average is $40.93. Rapid7 has a 1 year low of $32.94 and a 1 year high of $61.88. The company has a market capitalization of $2.23 billion, a price-to-earnings ratio of -17.45 and a beta of 0.96.

Rapid7 (NASDAQ:RPD) last posted its quarterly earnings data on Tuesday, August 6th. The technology company reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.06. Rapid7 had a negative return on equity of 67.88% and a negative net margin of 5.64%. The firm had revenue of $207.99 million for the quarter, compared to the consensus estimate of $204.04 million. During the same quarter in the previous year, the business earned ($0.33) EPS. The company’s quarterly revenue was up 9.2% compared to the same quarter last year. Equities analysts expect that Rapid7 will post 0.8 earnings per share for the current year.

Institutional Investors Weigh In On Rapid7

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Victory Capital Management Inc. increased its stake in Rapid7 by 25.7% in the 4th quarter. Victory Capital Management Inc. now owns 8,169 shares of the technology company’s stock valued at $466,000 after buying an additional 1,670 shares during the period. Envestnet Portfolio Solutions Inc. purchased a new position in shares of Rapid7 during the 4th quarter worth approximately $204,000. Principal Financial Group Inc. lifted its holdings in shares of Rapid7 by 11.6% in the 4th quarter. Principal Financial Group Inc. now owns 6,998 shares of the technology company’s stock valued at $400,000 after buying an additional 727 shares during the period. Norges Bank purchased a new stake in shares of Rapid7 in the fourth quarter valued at approximately $37,790,000. Finally, UBS Group AG grew its holdings in Rapid7 by 104.4% during the fourth quarter. UBS Group AG now owns 122,796 shares of the technology company’s stock worth $7,012,000 after acquiring an additional 62,714 shares during the period. 95.66% of the stock is owned by hedge funds and other institutional investors.

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.