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

Shares of Rapid7, Inc. (NASDAQ:RPD - Get Free Report) 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 trading hands.

The technology company reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 Analyst Weigh In

RPD has been the topic of a number of research reports. UBS Group lowered their price target on Rapid7 from $52.00 to $45.00 and set a "buy" rating on the stock in a report on Thursday. JPMorgan Chase & Co. lowered their target price on Rapid7 from $42.00 to $40.00 and set a "neutral" rating on the stock in a research note on Tuesday, February 11th. Citigroup lowered their price objective on shares of Rapid7 from $46.00 to $44.00 and set a "buy" rating on the stock in a research report on Thursday. DA Davidson lifted their price objective on shares of Rapid7 from $35.00 to $39.00 and gave the company a "neutral" rating in a research report on Thursday, November 7th. Finally, Piper Sandler lowered their target price on shares of Rapid7 from $42.00 to $40.00 and set a "neutral" rating on the stock in a report on Thursday, November 7th. Sixteen analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, Rapid7 presently has an average rating of "Hold" and an average target price of $41.22.

Insider Activity

In related news, CEO Corey E. Thomas sold 100,000 shares of the company's stock in a transaction that occurred on Tuesday, January 21st. The shares were sold at an average price of $39.38, for a total transaction of $3,938,000.00. Following the transaction, the chief executive officer now owns 431,469 shares of the company's stock, valued at approximately $16,991,249.22. This represents a 18.82 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its stake in shares of Rapid7 by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 8,618,480 shares of the technology company's stock worth $346,721,000 after purchasing an additional 60,095 shares during the period. JANA Partners Management LP grew its holdings in Rapid7 by 0.9% in the 4th quarter. JANA Partners Management LP now owns 3,690,129 shares of the technology company's stock valued at $148,454,000 after buying an additional 34,589 shares during the period. Geode Capital Management LLC increased its stake in shares of Rapid7 by 1.1% during 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 acquiring an additional 15,287 shares during the last quarter. First Trust Advisors LP lifted its holdings in shares of Rapid7 by 6.8% during the 4th quarter. First Trust Advisors LP now owns 1,255,731 shares of the technology company's stock worth $50,518,000 after acquiring an additional 79,836 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Rapid7 by 17.1% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 919,434 shares of the technology company's stock worth $36,993,000 after acquiring an additional 133,967 shares during the last quarter. Hedge funds and other institutional investors own 95.66% of the company's stock.

Rapid7 Stock Up 2.1 %

The stock has a market capitalization of $2.25 billion, a PE ratio of 56.43 and a beta of 0.96. The business's fifty day moving average is $39.23 and its 200-day moving average is $38.81.

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.