DA Davidson Provides Earnings Forecast for Rapid7 in Q1 2025

On February 13th, 2025, DA Davidson released their forecasts for the upcoming Q1 2025 earnings of Rapid7, Inc. (NASDAQ:RPD – Free Report). Analyst R. Kessinger predicts that Rapid7 will report earnings of ($0.01) per share for the quarter. Currently, DA Davidson maintains a ‘Neutral’ rating for the stock and has set a price target of $39.00.

The consensus among analysts for Rapid7's full-year earnings stands at $0.98 per share. Additionally, DA Davidson has projected earnings for FY2025 at $0.36 EPS and $0.60 EPS for FY2026.

Rapid7 recently reported its quarterly earnings results on February 12th. The company posted an earnings per share (EPS) of $0.12, which fell short of the analysts' expectations of $0.50 by ($0.38). The company also noted a negative return on equity of 128.95% and a net margin of 5.65%.

Several other financial institutions have also provided updates on Rapid7. Robert W. Baird lowered their price target from $43.00 to $39.00 and labeled the stock as ‘neutral’ in their report dated February 13th. StockNews.com downgraded Rapid7 from a ‘buy’ to a ‘hold’ rating on the same day. Additionally, Scotiabank reduced its price target from $42.00 to $38.00, while JPMorgan Chase & Co. adjusted their target down from $42.00 to $40.00, both retaining a ‘neutral’ rating. Truist Financial also lowered the target on Rapid7 from $38.00 to $35.00, marking the stock as a ‘hold’ as well. Overall, 16 analysts have rated the stock as a hold, while six have given it a buy rating, leading to a consensus rating of ‘Hold’ and an average price target of $41.22 according to MarketBeat.

Rapid7 Stock Performance Overview

The shares of Rapid7 opened at $35.55 on the Monday following the earnings report. The stock has a 50-day moving average of $39.11 and a 200-day moving average of $38.81. Over the past year, it has reached a low of $32.94 and a high of $61.79, and currently boasts a market capitalization of $2.25 billion with a price-to-earnings ratio of 56.43 and a beta of 0.96.

Institutional Investors and Their Interests in Rapid7

Recent changes among institutional investors and hedge funds regarding their positions in Rapid7 have been notable. For instance, International Assets Investment Management LLC increased its stake by an astonishing 3,888.2% in the third quarter, now holding 678 shares valued at $27,000 following the purchase of an additional 661 shares in the recent quarter. Similarly, Skandinaviska Enskilda Banken AB publ raised its holdings by 68.8% in the fourth quarter, now owning 1,116 shares valued at $46,000 following additional acquisitions. Pacer Advisors Inc. also grew its stake by 30.4% in the fourth quarter, now holding 1,487 shares worth $60,000. Furthermore, RPg Family Wealth Advisory LLC entered a new position worth about $69,000, and Ostrum Asset Management increased its position by 45.3% in the same quarter. Notably, hedge funds and institutions hold approximately 95.66% of Rapid7 stock.

Insider Transactions at Rapid7

In insider trading news, CEO Corey E. Thomas sold 100,000 shares of Rapid7 stock on January 21st at an average price of $39.38, for a total of $3,938,000. Following this transaction, he holds about 431,469 shares valued at approximately $16,991,249. This sale marks an 18.82% reduction in his holdings. The details of this transaction were filed with the SEC.

About Rapid7, Inc.

Rapid7, Inc provides various cybersecurity solutions under its well-known brand names, including Rapid7, Nexpose, and Metasploit. The company's service offerings include applications for data collection and sharing from endpoints to the cloud, such as the Rapid7 Insight Agent for data monitoring across different environments, the Rapid7 Insight Network Sensor for network activity analysis, and solutions for cloud resource monitoring, among others.

Rapid7, Earnings, Forecast