Rapid7 (NASDAQ:RPD) Shares Gap Up on Insider Buying Activity

Rapid7, Inc. (NASDAQ:RPD) shares gapped up before the market opened on Tuesday following insider buying activity. The stock had previously closed at $14.20, but opened at $14.86. Rapid7 shares last traded at $15.1160, with a volume of 329,452 shares.

Specifically, Director Mike Burns acquired 2,000 shares of Rapid7 stock in a transaction on Thursday, November 20th. The shares were purchased at an average price of $13.80 per share, with a total value of $27,600.00. Following the acquisition, the director owned 5,000 shares in the company, valued at $69,000. This represents a 66.67% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Corey E. Thomas purchased 14,500 shares of the company’s stock in a transaction that occurred on Monday, November 24th. The shares were acquired at an average cost of $13.82 per share, with a total value of $200,390.00. Following the completion of the purchase, the chief executive officer owned 595,066 shares of the company’s stock, valued at $8,223,812.12. The trade was a 2.50% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure.

Analyst Ratings Changes

RPD has been the subject of several analyst reports. Raymond James Financial decreased their target price on Rapid7 from $40.00 to $30.00 and set an “outperform” rating for the company in a research report on Friday, August 8th. Wall Street Zen cut Rapid7 from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Truist Financial lowered their target price on Rapid7 from $22.00 to $18.00 and set a “hold” rating on the stock in a research report on Wednesday, November 5th. Mizuho cut their price target on shares of Rapid7 from $27.00 to $25.00 and set a “neutral” rating for the company in a research note on Friday, August 8th. Finally, Berenberg Bank began coverage on Rapid7 in a report on Tuesday, November 18th. They set a “hold” rating and a $16.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $22.42.

Rapid7 Stock Performance

The company has a 50 day moving average price of $17.53 and a 200-day moving average price of $20.61. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 9.84. The company has a market cap of $984.18 million, a P/E ratio of 36.66 and a beta of 0.94.

Rapid7 (NASDAQ:RPD) last released its quarterly earnings data on Tuesday, November 4th. The technology company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.12. The business had revenue of $217.96 million during the quarter, compared to analysts’ expectations of $216.14 million. Rapid7 had a net margin of 3.41% and a return on equity of 149.12%. The firm’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.66 EPS. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS. Q4 2025 guidance at 0.370-0.44 EPS. On average, equities analysts expect that Rapid7, Inc. will post 0.35 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Rapid7

Several large investors have recently bought and sold shares of RPD. Acadian Asset Management LLC grew its holdings in Rapid7 by 136.7% during the 2nd quarter. Acadian Asset Management LLC now owns 169,955 shares of the technology company’s stock worth $3,924,000 after acquiring an additional 98,161 shares during the last quarter. Penserra Capital Management LLC raised its stake in shares of Rapid7 by 45.3% during the second quarter. Penserra Capital Management LLC now owns 2,731,192 shares of the technology company’s stock valued at $63,172,000 after acquiring an additional 851,108 shares during the last quarter. CenterBook Partners LP lifted its holdings in shares of Rapid7 by 68.9% during the second quarter. CenterBook Partners LP now owns 253,629 shares of the technology company’s stock worth $5,866,000 after purchasing an additional 103,504 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Rapid7 by 112.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,286,300 shares of the technology company’s stock worth $60,610,000 after purchasing an additional 1,209,856 shares during the last quarter. Finally, Exchange Traded Concepts LLC grew its stake in shares of Rapid7 by 20.5% in the second quarter. Exchange Traded Concepts LLC now owns 130,116 shares of the technology company’s stock worth $3,010,000 after purchasing an additional 22,120 shares during the last quarter. 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.