Reviewing The Case For Rapid7 Inc. (NASDAQ: RPD) Going Higher

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    The Vanguard Group, Inc. recently announced the acquisition of new stake in Rapid7 Inc. (NASDAQ:RPD). The institutional investor has increased its shareholding in the Technology company by 0.69% to 4.13 million shares with purchase of 28449.0 shares. This fresh investment now brings its stake to 8.17% valued currently at $201.73 million. In addition, Wellington Management Co. LLP raised its holdings by 0.4 million to 2.65 million shares. And Wasatch Advisors, Inc. has lifted its position by 69.67% or 0.81 million shares – to 1.96 million shares.

    With over 0.48 million Rapid7 Inc. (RPD) shares trading Friday and a closing price of $55.95 on the day, the dollar volume was approximately $26.75 million. The shares have shown a positive weekly performance of 4.78% and its price on 07/10/20 gained nearly 0.13%. Currently, there are 50.13M common shares owned by the public and among those 46.87M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for RPD have a consensus price objective of $59.79. The analysts have set the share’s price value over the next 12 months at a high of $73.00 and a low of $50.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Rapid7 Inc. stock is 1.80 for the next 12 months. The average price target is 8.46% above its last price level and an upside to the estimated low will see the stock lose -11.9% over that period. But an upside of 23.36% will see the stock hit the forecast high price target while mean target price for the stock is $59.00.

    Insiders at the company have transacted a total of 131 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 47 of these insider trades were purchases, accounting for 753,749 shares. Insider sales of the common stock occurred on 84 occasions, with total insider shares sold totaling 703,348 shares.

    The top 3 mutual fund holders in Rapid7 Inc. are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and iShares Russell 2000 ETF. Vanguard Total Stock Market Index owns 1.27 million shares of the company’s stock, all valued at over $62.16 million. The company sold 276.0 shares recently to bring their total holdings to about 2.52% of the shares outstanding. Vanguard Small Cap Index Fund sold 10056.0 shares to see its total holdings shrink to 1.15 million shares valued at over $56.28 million and representing 2.28% of the shares outstanding. iShares Russell 2000 ETF bought 10388.0 shares to bring its total holdings to over 1.04 million shares at a value of $50.78 million. iShares Russell 2000 ETF now owns shares totaling to 2.06% of the shares outstanding.

    Shares of Rapid7 Inc. (NASDAQ: RPD) opened at $55.89, up $0.01 from a prior closing price of $55.88. However, the script later closed the day at $55.95, up 0.13%. The company’s stock has a 5-day price change of 4.78% and 35.67% over the past three months. RPD shares are trading -0.12% year to date (YTD), with the 12-month market performance down to -10.78% lower. It has a 12-month low price of $31.34 and touched a high of $66.01 over the same period. Currently, 0.48 million shares have been traded, compared to an average intraday trading volume of 781.32K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 10.92%, 14.57%, and 11.07% respectively.

    Institutional ownership of Rapid7 Inc. (NASDAQ: RPD) shares accounts for 96.90% of the company’s 50.13M shares outstanding. Mutual fund holders own 41.35%, while other institutional holders and individual stakeholders account for 53.47% and 22.25% respectively.

    It has a market capitalization of $2.80B and a beta (3y monthly) value of 1.10. The earnings-per-share (ttm) stands at -$1.32. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.43% over the week and 4.03% over the month.

    Analysts forecast that Rapid7 Inc. (RPD) will achieve an EPS of -$0.01 for the current quarter, -$0.05 for the next quarter and $0.16 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.02 while analysts give the company a high EPS estimate of $0.02. Comparatively, EPS for the current quarter was $0.02 a year ago. Earnings per share for the fiscal year are expected to increase by 7.60%, and 200.00% over the next financial year. EPS should shrink at an annualized rate of -0.46% over the next five years, compared to 13.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Rapid7 Inc. (RPD) as a “Strong Buy” at a consensus score of 1.80. Specifically, 13 Wall Street analysts polled rate the stock as a buy, while 1 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the RPD, a number of firms have released research notes about the stock. Monness Crespi & Hardt stated their Buy rating for the stock in a research note on April 29, 2020, with the firm’s price target at $72-$60. Goldman coverage for the Rapid7 Inc. (RPD) stock in a research note released on March 25, 2020 offered a Buy rating with a price target of $49. Piper Jaffray was of a view on December 10, 2019 that the stock is Overweight, while SunTrust gave the stock Buy rating on October 03, 2019, issuing a price target of. Monness Crespi & Hardt on their part issued Buy rating on July 29, 2019.

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