Rapid7 (RPD) Shares Up 10.8% on Strong Earnings

Rapid7 Inc (NASDAQ:RPD)’s share price shot up 10.8% during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $38.00 and last traded at $37.14. 1,829,297 shares traded hands during trading, an increase of 285% from the average session volume of 474,874 shares. The stock had previously closed at $33.52.

The technology company reported ($0.20) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.25) by $0.05. Rapid7 had a negative net margin of 23.83% and a negative return on equity of 89.66%. The company had revenue of $62.40 million for the quarter, compared to analyst estimates of $59.50 million. During the same quarter in the prior year, the business posted ($0.15) EPS. The firm’s revenue was up 23.6% compared to the same quarter last year.

A number of research firms recently weighed in on RPD. Morgan Stanley set a $35.00 target price on shares of Rapid7 and gave the stock a “hold” rating in a report on Wednesday. Monness Crespi & Hardt increased their price objective on shares of Rapid7 from $38.00 to $41.00 and gave the company a “buy” rating in a research note on Wednesday. BidaskClub lowered shares of Rapid7 from a “strong-buy” rating to a “buy” rating in a research note on Wednesday. Zacks Investment Research upgraded shares of Rapid7 from a “hold” rating to a “buy” rating and set a $40.00 price objective for the company in a research note on Wednesday, October 10th. Finally, Stifel Nicolaus increased their price objective on shares of Rapid7 from $42.00 to $44.00 and gave the company a “buy” rating in a research note on Tuesday, October 2nd. Three analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus target price of $35.79.

In other news, insider Vii Lp Tcv sold 182,600 shares of the firm’s stock in a transaction that occurred on Wednesday, September 12th. The shares were sold at an average price of $37.96, for a total transaction of $6,931,496.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Andrew F. Burton sold 9,492 shares of the firm’s stock in a transaction that occurred on Friday, August 17th. The stock was sold at an average price of $32.53, for a total transaction of $308,774.76. The disclosure for this sale can be found here. In the last quarter, insiders sold 235,732 shares of company stock valued at $8,852,242. Company insiders own 25.60% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. Alliancebernstein L.P. increased its stake in shares of Rapid7 by 3,076.7% during the 3rd quarter. Alliancebernstein L.P. now owns 1,226,757 shares of the technology company’s stock worth $45,292,000 after purchasing an additional 1,188,140 shares during the last quarter. Chartwell Investment Partners LLC increased its stake in shares of Rapid7 by 53.7% during the 3rd quarter. Chartwell Investment Partners LLC now owns 302,989 shares of the technology company’s stock worth $11,186,000 after purchasing an additional 105,861 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. increased its stake in shares of Rapid7 by 26.1% during the 3rd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 18,007 shares of the technology company’s stock worth $665,000 after purchasing an additional 3,728 shares during the last quarter. JPMorgan Chase & Co. increased its stake in shares of Rapid7 by 18.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 166,666 shares of the technology company’s stock worth $6,153,000 after purchasing an additional 25,576 shares during the last quarter. Finally, Dupont Capital Management Corp purchased a new stake in shares of Rapid7 during the 3rd quarter worth approximately $811,000. Institutional investors own 78.69% of the company’s stock.

The company has a market capitalization of $1.57 billion, a PE ratio of -33.84 and a beta of 1.02.

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About Rapid7 (NASDAQ:RPD)

Rapid7, Inc provides analytics solutions for security and information (IT) operations. Its vulnerability management solutions include InsightVM and Nexpose, which enables customers to assess and remediate their overall exposure to cyber risk; InsightAppSec, an insight platform based solution; AppSpider, an application security testing solution; and Metasploit, a penetration testing software solution.

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