Rapid7 (NASDAQ:RPD) Posts Earnings Results, Misses Expectations By $0.38 EPS

Rapid7 (NASDAQ:RPD) released its quarterly earnings data on Wednesday. The technology company reported $0.12 EPS for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.38), Zacks reports. Rapid7 had a negative return on equity of 128.95% and a net margin of 5.65%. Rapid7 updated its FY 2025 guidance to 1.720-1.850 EPS and its Q1 2025 guidance to 0.330-0.360 EPS.

Rapid7 Stock Performance

Shares of RPD traded down $1.14 during mid-day trading on Wednesday, reaching $36.79. 1,733,187 shares of the company’s stock traded hands, compared to its average volume of 588,797. The business’s 50-day moving average price is $39.71 and its 200-day moving average price is $38.88. The stock has a market capitalization of $2.33 billion, a P/E ratio of 58.40 and a beta of 0.96. Rapid7 has a 12 month low of $32.94 and a 12 month high of $61.79.

Insider Activity

In related news, CEO Corey E. Thomas sold 100,000 shares of the firm’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 in the company, valued at $16,991,249.22. This trade represents a 18.82 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.60% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on RPD shares. JPMorgan Chase & Co. lowered their price target on Rapid7 from $42.00 to $40.00 and set a “neutral” rating for the company in a report on Tuesday. Piper Sandler lowered their price target on Rapid7 from $42.00 to $40.00 and set a “neutral” rating for the company in a report on Thursday, November 7th. Jefferies Financial Group started coverage on Rapid7 in a report on Wednesday, October 16th. They issued a “buy” rating and a $50.00 price target for the company. DA Davidson increased their price target on Rapid7 from $35.00 to $39.00 and gave the company a “neutral” rating in a report on Thursday, November 7th. Finally, Stifel Nicolaus reiterated a “hold” rating and issued a $42.00 price target (down from $48.00) on shares of Rapid7 in a report on Friday, January 17th. Fifteen research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $43.65.

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.