DA Davidson's Q1 Earnings Forecast for Rapid7 (NASDAQ:RPD)

On February 13th, 2025, research analysts from DA Davidson released their earnings estimates for Rapid7, Inc. (NASDAQ:RPD) in a report aimed at clients and investors. Analyst R. Kessinger forecasts that Rapid7 will report an earnings loss of ($0.01) per share for the first quarter of 2025. Currently, DA Davidson has maintained a “Neutral” rating on the stock with a price target set at $39.00.

The consensus estimate for the company’s earnings for the entire year stands at $0.98 per share. Furthermore, DA Davidson anticipates that Rapid7's earnings for fiscal year 2025 will be around $0.36 per share, increasing to $0.60 per share in fiscal year 2026.

Rapid7 recently disclosed its quarterly earnings on February 12th, where it reported earnings of $0.12 per share. This result was below the consensus estimate of $0.50, missing expectations by ($0.38). The company also reported a negative return on equity of 128.95% and a net margin of 5.65%.

Other Analysts' Reports

Rapid7 has recently been discussed in various research reports. On February 13th, Robert W. Baird reduced their price objective for Rapid7 from $43.00 to $39.00 and assigned a “neutral” rating. Additionally, StockNews.com downgraded Rapid7 from a “buy” rating to a “hold” rating on the same day.

In another report, Scotiabank lowered its price target from $42.00 to $38.00, maintaining a “sector perform” rating. JPMorgan Chase & Co. also cut their price objective from $42.00 to $40.00 while keeping a “neutral” rating. Lastly, Truist Financial adjusted their target price from $38.00 to $35.00, also labeling the stock as a “hold”. Overall, sixteen analysts have rated the stock as a hold and six rated it as a buy, leading to a consensus rating of “Hold” with a price target of $41.22 according to MarketBeat data.

Rapid7's Price and Market Performance

The stock opened at $35.55 recently, with a fifty-day moving average at $39.11 and a two-hundred-day moving average at $38.81. Rapid7 has experienced a 12-month low of $32.94 and a high of $61.79. The company has a market capitalization of $2.25 billion and a price-to-earnings ratio of 56.43.

Institutional Investor Trends

Recent changes in institutional and hedge fund positions regarding Rapid7 show significant activity. For example, International Assets Investment Management LLC increased its position in the stock substantially by 3,888.2% during the third quarter, now holding 678 shares worth $27,000 after acquiring 661 additional shares. Likewise, Skandinaviska Enskilda Banken AB grew its holdings by 68.8%, now owning 1,116 shares valued at $46,000.

Pacer Advisors Inc. also raised its stake by 30.4%, holding 1,487 shares worth $60,000. Other institutional movements include new purchases and increased positions by various firms, with approximately 95.66% of Rapid7's stock owned by hedge funds and other institutional investors.

Insider Transactions

In insider trading news, CEO Corey E. Thomas sold 100,000 shares at an average price of $39.38 on January 21st. This transaction totaled $3,938,000 and reduced his direct ownership to approximately 431,469 shares, valued at around $16.99 million. Insiders currently hold about 2.60% of the stock.

Company Overview

Rapid7, Inc. focuses on providing cybersecurity solutions through its suite of products, including Rapid7, Nexpose, and Metasploit. Their offerings include various tools for data collection and sharing across on-premises and cloud environments, promoting increased security and visibility for users.

Conclusion

As analysts and investors closely monitor the upcoming earnings report, Rapid7's performance remains a key point of interest in the technology and cybersecurity sectors.

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