Is Rapid7 Stock a Good Investment?

Rapid7 Investment Advice

RPD

To provide specific investment advice or recommendations on Rapid7 Inc stock, we recommend investors consider the following general factors when evaluating Rapid7 Inc. This will help you to make an informed decision on whether to include Rapid7 in one of your diversified portfolios:

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

Strong Sell

Rapid7 advice module can be used to check and cross-verify current recommendation provided by analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Rapid7 is not overpriced, please check all Rapid7 Inc fundamentals, including its price to sales, debt to equity, number of employees, as well as the relationship between the net income and short ratio . Given that Rapid7 Inc has a price to earning of (18.03) X, we recommend you to check out Rapid7 Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Below Average	Details
Economic Sensitivity	Actively responds to the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	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 99.0% of the company shares are owned by institutional investors. The company 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 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.
	The entity reported the last year's revenue of 777.71 M. Reported Net Loss for the year was (149.26 M) with profit before taxes, overhead, and interest of 470.73 M.
	Over 99.0% of Rapid7 shares are owned by institutional investors
	Latest headline from accesswire.com: Investors Are Invited To Join The Schall Law Firms Inquiry Into Rapid7, Inc. For Securities Fraud

Rapid7 Quarterly Cash And Short Term Investments

443.69 Million

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

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.	2024-06-30	1.2 M
Freshford Capital Management Llc	2024-06-30	1.2 M
Penserra Capital Management, Llc	2024-06-30	1.1 M
Ubs Asset Mgmt Americas Inc	2024-09-30	1.1 M
Deutsche Bank Ag	2024-06-30	861 K
Mirae Asset Global Etfs Holdings Ltd.	2024-06-30	849.8 K
Pictet Asset Manangement Sa	2024-06-30	848.9 K
Norges Bank	2024-06-30	830.8 K
Legal & General Group Plc	2024-06-30	715.5 K
Vanguard Group Inc		8.6 M
Blackrock Inc	2024-06-30	6 M

Note, although Rapid7's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Rapid7's market capitalization trends

The company currently falls under 'Mid-Cap' category with a total capitalization of 2.71 B.

Market Cap

3.64 Billion

Rapid7's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.17)	(0.18)
Return On Capital Employed	(0.09)	(0.09)
Return On Assets	(0.10)	(0.10)
Return On Equity	1.26	1.33

The company has Net Profit Margin of 0.06 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.07 %, which entails that for every 100 dollars of revenue, it generated $0.07 of operating income.

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.

Rapid7's Earnings Breakdown by Geography

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 0.0189 % which means that on every $100 spent on assets, it made $0.0189 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 Equity is expected to grow to 1.33, whereas Return On Tangible Assets are forecasted to decline to (0.18). At present, Rapid7's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 94 M, whereas Net Tangible Assets are forecasted to decline to (209.2 M).

	Last Reported	Projected for Next Year
Book Value Per Share	(1.95)	(1.85)
Tangible Book Value Per Share	(12.33)	(11.71)
Enterprise Value Over EBITDA	(109.36)	(114.82)
Price Book Value Ratio	(29.36)	(27.89)
Enterprise Value Multiple	(109.36)	(114.82)
Price Fair Value	(29.36)	(27.89)
Enterprise Value	4.3 B	4.5 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

0.964

Basic technical analysis of Rapid7 Stock

As of the 25th of November, Rapid7 holds the Semi Deviation of 1.65, risk adjusted performance of 0.0898, and Coefficient Of Variation of 922.03. 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 variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Rapid7 Inc is priced some-what accurately, providing market reflects its current price of 42.86 per share. Given that Rapid7 has jensen alpha of 0.0333, 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.

		Sondhi Reeny over a week ago Disposition of 3663 shares by Sondhi Reeny of Rapid7 at 40.75 subject to Rule 16b-3
		Andrew Burton over a month ago Disposition of 16562 shares by Andrew Burton of Rapid7 at 53.66 subject to Rule 16b-3
		Andrew Burton over three months ago Disposition of 2287 shares by Andrew Burton of Rapid7 at 52.89 subject to Rule 16b-3
		Timothy Adams over six months ago Disposition of 6717 shares by Timothy Adams of Rapid7 at .38 subject to Rule 16b-3
		Andrew Burton over six months ago Disposition of 100 shares by Andrew Burton of Rapid7 at 53.76 subject to Rule 16b-3
		Andrew Burton over six months ago Disposition of 100 shares by Andrew Burton of Rapid7 at 53.76 subject to Rule 16b-3

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.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MGM Resorts International Corp Bond US552953CD18	View
	AerCap Global Aviation Corp Bond US00773HAA59	View

View All Rapid7 Corporate Bonds

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	0.0898
	Market Risk Adjusted Performance	0.1507
	Mean Deviation	1.77
	Semi Deviation	1.65
	Downside Deviation	1.8
	Coefficient Of Variation	922.03
	Standard Deviation	2.26
	Variance	5.1
	Information Ratio	0.0506
	Jensen Alpha	0.0333
	Total Risk Alpha	(0.12)
	Sortino Ratio	0.0635
	Treynor Ratio	0.1407
	Maximum Drawdown	10.83
	Value At Risk	(2.74)
	Potential Upside	4.23
	Downside Variance	3.23
	Semi Variance	2.71
	Expected Short fall	(2.12)
	Skewness	0.646
	Kurtosis	0.2285

	Risk Adjusted Performance	0.0898
	Market Risk Adjusted Performance	0.1507
	Mean Deviation	1.77
	Semi Deviation	1.65
	Downside Deviation	1.8
	Coefficient Of Variation	922.03
	Standard Deviation	2.26
	Variance	5.1
	Information Ratio	0.0506
	Jensen Alpha	0.0333
	Total Risk Alpha	(0.12)
	Sortino Ratio	0.0635
	Treynor Ratio	0.1407
	Maximum Drawdown	10.83
	Value At Risk	(2.74)
	Potential Upside	4.23
	Downside Variance	3.23
	Semi Variance	2.71
	Expected Short fall	(2.12)
	Skewness	0.646
	Kurtosis	0.2285

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	0.0193
	Daily Balance Of Power	0.506
	Rate Of Daily Change	1.01
	Day Median Price	42.68
	Day Typical Price	42.74
	Market Facilitation Index	0.83
	Price Action Indicator	0.39
	Period Momentum Indicator	0.42
	Relative Strength Index	60.27

Rapid7 Corporate Filings

F4	19th of November 2024 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	View Verify
13A	12th of November 2024 An amended filing to the original Schedule 13G	View Verify
10Q	7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
8K	6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify

Rapid7 time-series forecasting models is one of many Rapid7's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Rapid7's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

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 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

When determining whether Rapid7 Inc is a strong investment it is important to analyze Rapid7's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Rapid7's future performance. For an informed investment choice regarding Rapid7 Stock, refer to the following important reports: