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

Rapid7, Inc. (NASDAQ:RPD - Get Free Report)'s share price gapped up prior to trading 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 Analysts Forecast Growth

RPD has been the topic of several research analyst reports. Jefferies Financial Group initiated coverage on shares of Rapid7 in a report on Wednesday, October 16th. They issued a "buy" rating and a $50.00 target price on the stock. Truist Financial decreased their price target on shares of Rapid7 from $40.00 to $38.00 and set a "hold" rating on the stock in a research note on Thursday, November 7th. UBS Group cut their price objective on Rapid7 from $59.00 to $52.00 and set a "buy" rating for the company in a research report on Thursday, November 7th. StockNews.com upgraded Rapid7 from a "hold" rating to a "buy" rating in a research report on Friday, December 6th. Finally, Royal Bank of Canada lowered Rapid7 from an "outperform" rating to a "sector perform" rating and dropped their price target for the company from $50.00 to $40.00 in a research note on Friday, September 20th. Fourteen research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $44.59.

Rapid7 Trading Up 2.5 %

The stock has a market capitalization of $2.53 billion, a PE ratio of 63.54 and a beta of 0.95. The company's 50-day moving average is $40.93 and its 200 day moving average is $38.87.

Rapid7 (NASDAQ:RPD - Get Free Report) last announced its quarterly earnings data on Wednesday, November 6th. The technology company reported $0.66 earnings per share for the quarter, beating analysts' consensus estimates of $0.52 by $0.14. Rapid7 had a negative return on equity of 128.95% and a net margin of 5.65%. The business had revenue of $214.65 million for the quarter, compared to analyst estimates of $210.04 million. During the same period in the prior year, the company earned $0.11 earnings per share. The company's revenue was up 8.0% on a year-over-year basis. Sell-side analysts forecast that Rapid7, Inc. will post 0.98 EPS for the current fiscal year.

Insider Transactions at Rapid7

In other Rapid7 news, Director Reeny Sondhi sold 3,663 shares of the company's stock in a transaction dated 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 transaction, the director now owns 17,460 shares in the company, valued at approximately $698,400. This represents a 17.34 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On Rapid7

Institutional investors have recently added to or reduced their stakes in the stock. Point72 Asset Management L.P. increased its stake in Rapid7 by 252.0% during the 2nd quarter. Point72 Asset Management L.P. now owns 3,799,119 shares of the technology company's stock worth $164,236,000 after buying an additional 2,719,791 shares in the last quarter. Cannae Holdings Inc. purchased a new stake in shares of Rapid7 during the second quarter worth approximately $15,130,000. Invenomic Capital Management LP purchased a new stake in shares of Rapid7 during the third quarter worth approximately $6,647,000. 272 Capital LP acquired a new position in Rapid7 in the 2nd quarter valued at $6,979,000. Finally, Susquehanna Fundamental Investments LLC purchased a new position in Rapid7 in the 2nd quarter valued at $6,106,000. Institutional investors and hedge funds own 95.66% of the company's stock.

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.