Is Rapid7 Stock a Good Investment?
Rapid7 Investment Advice | RPD |
- Examine Rapid7's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Rapid7's leadership team and their track record. Good management can help Rapid7 navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Systems Software space and any emerging trends that could impact Rapid7's business and its evolving consumer preferences.
- Compare Rapid7's performance and market position to its competitors. Analyze how Rapid7 is positioned in terms of product offerings, innovation, and market share.
- Check if Rapid7 pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Rapid7's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Rapid7 Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Rapid7 Inc is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Rapid7 Stock
Researching Rapid7's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.41. Rapid7 Inc had not issued any dividends in recent years.
To determine if Rapid7 is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Rapid7's research are outlined below:
| Rapid7 Inc generated a negative expected return over the last 90 days | |
| Rapid7 Inc has 1.02 B in debt with debt to equity (D/E) ratio of 6.49, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Rapid7 Inc has a current ratio of 0.87, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Rapid7 to invest in growth at high rates of return. | |
| Over 98.0% of Rapid7 shares are owned by institutional investors | |
| Latest headline from insidermonkey.com: Is Rapid7, Inc. the Best Small Cap Tech Stock to Buy Now |
Rapid7 Quarterly Cash And Short Term Investments |
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Rapid7 uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Rapid7 Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Rapid7's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 7th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Rapid7's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Rapid7's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-02-09 | 2020-12-31 | -0.08 | -0.07 | 0.01 | 12 | ||
2020-05-07 | 2020-03-31 | -0.1 | -0.09 | 0.01 | 10 | ||
2022-08-03 | 2022-06-30 | -0.03 | -0.01 | 0.02 | 66 | ||
2017-11-07 | 2017-09-30 | -0.17 | -0.15 | 0.02 | 11 | ||
2021-05-06 | 2021-03-31 | -0.06 | -0.03 | 0.03 | 50 | ||
2019-11-05 | 2019-09-30 | -0.02 | 0.01 | 0.03 | 150 | ||
2021-08-04 | 2021-06-30 | 0.03 | 0.07 | 0.04 | 133 | ||
2020-02-10 | 2019-12-31 | -0.01 | 0.03 | 0.04 | 400 |
Rapid7 Target Price Consensus
Rapid7 target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Rapid7's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 25 | Buy |
Most Rapid7 analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Rapid7 stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Rapid7 Inc, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationRapid7 Target Price Projection
Rapid7's current and average target prices are 28.35 and 43.75, respectively. The current price of Rapid7 is the price at which Rapid7 Inc is currently trading. On the other hand, Rapid7's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Rapid7 Target Price
Rapid7 Analyst Ratings
Rapid7's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Rapid7 stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Rapid7's financials, market performance, and future outlook by experienced professionals. Rapid7's historical ratings below, therefore, can serve as a valuable tool for investors.Know Rapid7's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Rapid7 is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Rapid7 Inc backward and forwards among themselves. Rapid7's institutional investor refers to the entity that pools money to purchase Rapid7's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | First Trust Advisors L.p. | 2024-12-31 | 1.3 M | Ubs Asset Mgmt Americas Inc | 2024-12-31 | 1.1 M | Groupama Asset Management | 2024-12-31 | 1000 K | Penserra Capital Management, Llc | 2024-12-31 | 960.1 K | Mirae Asset Global Etfs Holdings Ltd. | 2024-12-31 | 919.4 K | Legal & General Group Plc | 2024-12-31 | 707.6 K | Alyeska Investment Group, L.p. | 2024-12-31 | 658 K | Northern Trust Corp | 2024-12-31 | 624.9 K | Susquehanna International Group, Llp | 2024-12-31 | 550.4 K | Vanguard Group Inc | 2024-12-31 | 8.6 M | Blackrock Inc | 2024-12-31 | 6.5 M |
Rapid7's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 1.88 B.Market Cap |
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Rapid7's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.03 | |
| Return On Capital Employed | 0.03 | 0.04 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 1.44 | 1.51 |
Determining Rapid7's profitability involves analyzing its financial statements and using various financial metrics to determine if Rapid7 is a good buy. For example, gross profit margin measures Rapid7's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Rapid7's profitability and make more informed investment decisions.
Please note, the presentation of Rapid7's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Rapid7's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Rapid7's management manipulating its earnings.
Evaluate Rapid7's management efficiency
Rapid7 Inc has Return on Asset of 0.0141 % which means that on every $100 spent on assets, it made $0.0141 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (1.2779) %, meaning that it generated no profit with money invested by stockholders. Rapid7's management efficiency ratios could be used to measure how well Rapid7 manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.03. The current year's Return On Capital Employed is expected to grow to 0.04. At present, Rapid7's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 102.4 M, whereas Intangible Assets are forecasted to decline to about 48.6 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 0.28 | 0.30 | |
| Tangible Book Value Per Share | (10.27) | (10.79) | |
| Enterprise Value Over EBITDA | 32.91 | 34.55 | |
| Price Book Value Ratio | 142.21 | 149.32 | |
| Enterprise Value Multiple | 32.91 | 34.55 | |
| Price Fair Value | 142.21 | 149.32 | |
| Enterprise Value | 3.2 B | 2.1 B |
Effective leadership at Rapid7 drives its competitive edge in the market. Our analysis focuses on how this translates to financial performance and stock value.
Beta 0.918 |
Basic technical analysis of Rapid7 Stock
As of the 20th of March, Rapid7 holds the Risk Adjusted Performance of (0.22), variance of 4.11, and Coefficient Of Variation of (401.56). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Rapid7, as well as the relationship between them. Please check Rapid7 Inc market risk adjusted performance, variance, as well as the relationship between the Variance and value at risk to decide if Rapid7 Inc is priced some-what accurately, providing market reflects its current price of 28.35 per share. Given that Rapid7 has information ratio of (0.22), we recommend you to check out Rapid7 Inc's recent market performance to make sure the company can sustain itself at a future point.Rapid7's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Rapid7 insiders, such as employees or executives, is commonly permitted as long as it does not rely on Rapid7's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Rapid7 insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Rapid7's Outstanding Corporate Bonds
Rapid7 issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Rapid7 Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Rapid7 bonds can be classified according to their maturity, which is the date when Rapid7 Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand Rapid7's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Rapid7's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.22) | |||
| Market Risk Adjusted Performance | (0.60) | |||
| Mean Deviation | 1.57 | |||
| Coefficient Of Variation | (401.56) | |||
| Standard Deviation | 2.03 | |||
| Variance | 4.11 | |||
| Information Ratio | (0.22) | |||
| Jensen Alpha | (0.45) | |||
| Total Risk Alpha | (0.34) | |||
| Treynor Ratio | (0.61) | |||
| Maximum Drawdown | 9.26 | |||
| Value At Risk | (3.85) | |||
| Potential Upside | 3.39 | |||
| Skewness | 0.1534 | |||
| Kurtosis | 0.1998 |
| Risk Adjusted Performance | (0.22) | |||
| Market Risk Adjusted Performance | (0.60) | |||
| Mean Deviation | 1.57 | |||
| Coefficient Of Variation | (401.56) | |||
| Standard Deviation | 2.03 | |||
| Variance | 4.11 | |||
| Information Ratio | (0.22) | |||
| Jensen Alpha | (0.45) | |||
| Total Risk Alpha | (0.34) | |||
| Treynor Ratio | (0.61) | |||
| Maximum Drawdown | 9.26 | |||
| Value At Risk | (3.85) | |||
| Potential Upside | 3.39 | |||
| Skewness | 0.1534 | |||
| Kurtosis | 0.1998 |
Consider Rapid7's intraday indicators
Rapid7 intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Rapid7 stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 27245.72 | |||
| Daily Balance Of Power | (1.09) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 28.74 | |||
| Day Typical Price | 28.61 | |||
| Price Action Indicator | (0.88) | |||
| Period Momentum Indicator | (0.99) | |||
| Relative Strength Index | 30.56 |
Rapid7 Corporate Filings
| 13th of March 2025 Other Reports | ViewVerify | |
F4 | 11th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 28th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
| 14th of February 2025 Other Reports | ViewVerify |
Rapid7 Stock media impact
Far too much social signal, news, headlines, and media speculation about Rapid7 that are available to investors today. That information is available publicly through Rapid7 media outlets and privately through word of mouth or via Rapid7 internal channels. However, regardless of the origin, that massive amount of Rapid7 data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Rapid7 news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Rapid7 relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Rapid7's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Rapid7 alpha.
Rapid7 Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Rapid7 can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Rapid7 Inc Historical Investor Sentiment
Investor biases related to Rapid7's public news can be used to forecast risks associated with an investment in Rapid7. The trend in average sentiment can be used to explain how an investor holding Rapid7 can time the market purely based on public headlines and social activities around Rapid7 Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Rapid7's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Rapid7 and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Rapid7 news discussions. The higher the estimate score, the more favorable the investor's outlook on Rapid7.
Rapid7 Maximum Pain Price Across May 16th 2025 Option Contracts
Rapid7's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Rapid7 close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Rapid7's options.
Rapid7 Corporate Management
| Christina Luconi | Chief Officer | Profile | |
| Bridget Collins | Chief Officer | Profile | |
| Caitlin Doherty | Public Manager | Profile | |
| Cynthia Stanton | Senior Officer | Profile | |
| Tas Giakouminakis | CoFounder CTO | Profile | |
| Raj Samani | Senior Scientist | Profile | |
| Scott Murphy | Senior Officer | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rapid7 Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Is Systems Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Rapid7. If investors know Rapid7 will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Rapid7 listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.89) | Earnings Share 0.4 | Revenue Per Share | Quarterly Revenue Growth 0.054 | Return On Assets |
The market value of Rapid7 Inc is measured differently than its book value, which is the value of Rapid7 that is recorded on the company's balance sheet. Investors also form their own opinion of Rapid7's value that differs from its market value or its book value, called intrinsic value, which is Rapid7's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Rapid7's market value can be influenced by many factors that don't directly affect Rapid7's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Rapid7's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Rapid7 is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rapid7's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.