Rapid7 Inc. (RPD) looking to reclaim success with recent performance

Rapid7 Inc. (NASDAQ: RPD) stock fell -6.05% on Friday to $67.44 against a previous-day closing price of $71.78. With 1.0 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.7 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $72.79 whereas the lowest price it dropped to was $66.74. The 52-week range on RPD shows that it touched its highest point at $145.00 and its lowest point at $60.42 during that stretch. It currently has a 1-year price target of $109.17. Beta for the stock currently stands at 1.31.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RPD was up-trending over the past week, with a rise of 2.18%, but this was down by -6.28% over a month. Three-month performance dropped to -28.79% while six-month performance fell -29.98%. The stock lost -42.09% in the past year, while it has lost -42.70% so far this year. A look at the trailing 12-month EPS for RPD yields -2.85 with Next year EPS estimates of 0.48. For the next quarter, that number is -0.03. This implies an EPS growth rate of -36.70% for this year and 313.91% for next year.

Float and Shares Shorts:

At present, 57.73 million RPD shares are outstanding with a float of 57.30 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.48 million, which was 7.69% higher than short shares on Jun 14, 2022. In addition to Mr. Corey E. Thomas as the firm’s Chairman & CEO, Mr. Andrew F. Burton serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 104.97% of RPD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 68.11% of RPD, in contrast to 35.60% held by mutual funds. Shares owned by individuals account for 19.49%. As the largest shareholder in RPD with 8.81% of the stake, The Vanguard Group, Inc. holds 5,132,691 shares worth 5,132,691. A second-largest stockholder of RPD, BlackRock Fund Advisors, holds 3,817,243 shares, controlling over 6.55% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in RPD, holding 3,660,091 shares or 6.28% stake. With a 3.03% stake in RPD, the First Trust NASDAQ Cybersecurity is the largest stakeholder. A total of 1,767,499 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.81% of RPD stock, is the second-largest Mutual Fund holder. It holds 1,638,209 shares valued at 109.43 million. Vanguard Small Cap Index Fund holds 2.40% of the stake in RPD, owning 1,398,889 shares worth 93.45 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RPD since 15 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RPD analysts setting a high price target of $130.00 and a low target of $80.00, the average target price over the next 12 months is $91.21. Based on these targets, RPD could surge 92.76% to reach the target high and rise by 18.62% to reach the target low. Reaching the average price target will result in a growth of 35.25% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RPD will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $0.12 being high and $0.08 being low. For RPD, this leads to a yearly average estimate of $0.10. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rapid7 Inc. surprised analysts by $0.03 when it reported -$0.01 EPS against a consensus estimate of -$0.04. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $0.25 and the low estimate is $0.04. The average estimate for the next quarter is thus $0.07.

Summary of Insider Activity:

Insiders traded RPD stock several times over the past three months with 9 Buys and 3 Sells. In these transactions, 28,016 shares were bought while 23,248 shares were sold. The number of buy transactions has increased to 34 while that of sell transactions has risen to 85 over the past year. The total number of shares bought during that period was 554,119 while 470,686 shares were sold.

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