Rapid7 (NASDAQ:RPD) Shares Gap Up – Still a Buy?

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.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on RPD shares. UBS Group lowered their price target on Rapid7 from $59.00 to $52.00 and set a “buy” rating for the company in a research note on Thursday, November 7th. StockNews.com raised Rapid7 from a “hold” rating to a “buy” rating in a report on Friday, December 6th. JPMorgan Chase & Co. lifted their price objective on Rapid7 from $40.00 to $42.00 and gave the stock a “neutral” rating in a research note on Thursday, November 7th. Royal Bank of Canada downgraded Rapid7 from an “outperform” rating to a “sector perform” rating and decreased their target price for the company from $50.00 to $40.00 in a research note on Friday, September 20th. Finally, Jefferies Financial Group began coverage on Rapid7 in a report on Wednesday, October 16th. They set a “buy” rating and a $50.00 price target for the company. Fourteen equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $44.59.

Rapid7 Trading Up 6.2 %

The stock has a market capitalization of $2.62 billion, a P/E ratio of 65.84 and a beta of 0.95. The company has a fifty day simple moving average of $40.92 and a two-hundred day simple moving average of $38.85.

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

Insider Transactions at Rapid7

In related news, Director Reeny Sondhi sold 3,663 shares of Rapid7 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 completion of the transaction, the director now owns 17,460 shares in the company, valued at approximately $698,400. This trade represents a 17.34 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 2.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rapid7

A number of large investors have recently made changes to their positions in RPD. 1620 Investment Advisors Inc. lifted its holdings in shares of Rapid7 by 14.5% during the 3rd quarter. 1620 Investment Advisors Inc. now owns 2,783 shares of the technology company’s stock worth $111,000 after acquiring an additional 352 shares during the period. Benjamin F. Edwards & Company Inc. lifted its stake in shares of Rapid7 by 10.3% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 4,287 shares of the technology company’s stock worth $185,000 after acquiring an additional 400 shares during the period. Arizona State Retirement System boosted its stake in shares of Rapid7 by 2.8% in the 2nd quarter. Arizona State Retirement System now owns 17,352 shares of the technology company’s stock valued at $750,000 after purchasing an additional 465 shares during the last quarter. nVerses Capital LLC increased its position in shares of Rapid7 by 26.1% during the second quarter. nVerses Capital LLC now owns 2,900 shares of the technology company’s stock worth $125,000 after buying an additional 600 shares during the period. Finally, International Assets Investment Management LLC raised its stake in Rapid7 by 3,888.2% during the third quarter. International Assets Investment Management LLC now owns 678 shares of the technology company’s stock worth $27,000 after buying an additional 661 shares during the last quarter. Institutional investors own 95.66% of the company’s stock.

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.