Royal Bank of Canada Downgrades Rapid7 (NASDAQ:RPD) to Sector Perform

Rapid7 (NASDAQ:RPD) was downgraded by analysts at Royal Bank of Canada from an “outperform” rating to a “sector perform” rating in a note issued to investors on Friday, Marketbeat Ratings reports. They currently have a $40.00 target price on the technology company’s stock, down from their previous target price of $50.00. Royal Bank of Canada’s price objective indicates a potential upside of 16.45% from the company’s previous close.

Other research analysts have also issued research reports about the company. Needham & Company LLC restated a “hold” rating on shares of Rapid7 in a research report on Wednesday, August 7th. KeyCorp raised Rapid7 to a “hold” rating in a report on Monday, June 17th. Canaccord Genuity Group raised shares of Rapid7 from a “hold” rating to a “buy” rating and cut their target price for the company from $52.00 to $43.00 in a report on Wednesday, August 7th. Piper Sandler dropped their price objective on shares of Rapid7 from $45.00 to $42.00 and set a “neutral” rating for the company in a research note on Wednesday, August 7th. Finally, Robert W. Baird lowered shares of Rapid7 from an “outperform” rating to a “neutral” rating and lowered their target price for the stock from $56.00 to $45.00 in a report on Thursday, August 1st. Fourteen investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat, Rapid7 currently has a consensus rating of “Hold” and a consensus target price of $46.13.

Rapid7 Stock Up 1.5 %

Shares of NASDAQ:RPD opened at $34.35 on Friday. The firm’s 50 day moving average price is $37.13 and its 200-day moving average price is $41.42. The stock has a market capitalization of $2.15 billion, a PE ratio of -16.76 and a beta of 0.96. Rapid7 has a twelve month low of $32.94 and a twelve month high of $61.88.

Rapid7 (NASDAQ:RPD) last posted its quarterly earnings results on Tuesday, August 6th. The technology company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.06. Rapid7 had a negative return on equity of 67.88% and a negative net margin of 5.64%. The business had revenue of $207.99 million during the quarter, compared to the consensus estimate of $204.04 million. During the same period in the prior year, the company posted ($0.33) EPS. The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year. Analysts expect that Rapid7 will post 0.8 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Rapid7

Institutional investors have recently added to or reduced their stakes in the stock. Point72 Asset Management L.P. boosted its holdings in shares of Rapid7 by 252.0% in the 2nd quarter. Point72 Asset Management L.P. now owns 3,799,119 shares of the technology company’s stock valued at $164,236,000 after buying an additional 2,719,791 shares in the last quarter. First Trust Advisors LP increased its position in shares of Rapid7 by 49.2% during the fourth quarter. First Trust Advisors LP now owns 3,409,246 shares of the technology company’s stock worth $194,668,000 after purchasing an additional 1,124,429 shares in the last quarter. Wasatch Advisors LP lifted its holdings in shares of Rapid7 by 12.8% during the 4th quarter. Wasatch Advisors LP now owns 1,410,051 shares of the technology company’s stock valued at $80,514,000 after purchasing an additional 160,531 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. grew its stake in Rapid7 by 46.5% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,254,323 shares of the technology company’s stock worth $61,512,000 after buying an additional 397,968 shares during the last quarter. Finally, Norges Bank acquired a new position in Rapid7 during the 4th quarter valued at about $37,790,000. Institutional investors 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.