Rapid7 (NASDAQ:RPD) Shares Gap Up - Here's Why

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $40.28, but opened at $41.59. Rapid7 shares last traded at $40.56, with a volume of 195,446 shares traded.

Analysts Set New Price Targets

A number of research firms have recently issued reports on RPD. Canaccord Genuity Group upgraded Rapid7 from a "hold" rating to a "buy" rating and lowered their price objective for the company from $52.00 to $43.00 in a research report on Wednesday, August 7th. Jefferies Financial Group began coverage on Rapid7 in a research report on Wednesday. They set a "buy" rating and a $50.00 price objective on the stock. UBS Group lowered their price objective on Rapid7 from $65.00 to $59.00 and set a "buy" rating on the stock in a research report on Wednesday, August 7th. Royal Bank of Canada cut Rapid7 from an "outperform" rating to a "sector perform" rating and lowered their price objective for the company from $50.00 to $40.00 in a research report on Friday, September 20th. Finally, Scotiabank lowered their price objective on Rapid7 from $45.00 to $41.00 and set a "sector perform" rating on the stock in a research report on Wednesday, August 7th. Fourteen research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $46.35.

Rapid7 Price Performance

The company has a market cap of $2.52 billion, a price-to-earnings ratio of -47.95 and a beta of 0.97. The business has a 50 day simple moving average of $37.03 and a 200 day simple moving average of $39.56.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 6th. The technology company reported $0.58 EPS for the quarter, topping analysts' consensus estimates of $0.52 by $0.06. The company had revenue of $207.99 million for the quarter, compared to analyst estimates of $204.04 million. Rapid7 had a negative return on equity of 67.88% and a negative net margin of 5.64%. The business's revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.33) earnings per share. As a group, sell-side analysts anticipate that Rapid7, Inc. will post 0.8 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rapid7 news, Director Reeny Sondhi sold 3,663 shares of the company's stock in a transaction that occurred on Monday, September 30th. The shares were sold at an average price of $40.00, for a total value of $146,520.00. Following the completion of the sale, the director now owns 17,460 shares of the company's stock, valued at approximately $698,400. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Comerica Bank boosted its holdings in shares of Rapid7 by 1.1% in the first quarter. Comerica Bank now owns 25,356 shares of the technology company's stock valued at $1,243,000 after buying an additional 281 shares during the period. Virtu Financial LLC boosted its holdings in shares of Rapid7 by 7.1% in the first quarter. Virtu Financial LLC now owns 5,198 shares of the technology company's stock valued at $255,000 after buying an additional 346 shares during the period. Benjamin F. Edwards & Company Inc. boosted its holdings 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 valued at $185,000 after buying an additional 400 shares during the period. Arizona State Retirement System boosted its holdings in shares of Rapid7 by 2.8% in the second quarter. Arizona State Retirement System now owns 17,352 shares of the technology company's stock valued at $750,000 after buying an additional 465 shares during the period. Finally, 1620 Investment Advisors Inc. boosted its holdings in shares of Rapid7 by 30.3% in the second quarter. 1620 Investment Advisors Inc. now owns 2,431 shares of the technology company's stock valued at $105,000 after buying an additional 565 shares during the period. Institutional investors and hedge funds 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.