Rapid7 Inc. (RPD) shares are trading at lower $65.56 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $69.80.
To add more color to this target, the company’s high over the last year is $67.76 and the low is $31.34. Over the last 52 weeks, RPD is up 31.12% while the S&P 500 is up 18.95%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, RPD reported a profit of $69.83 million. Rapid7 Inc. also saw revenues increase to $98.91 million. In addition, RPD has free cash flow of -$13.68 million as of 06-2020. The company’s EBITDA came in at -$5.89 million which compares well with its peers.
RPD booked profit margins of -19.90%, its Return on Equity (ROE) is -87.00%, and its Return on Assets is -10.50%. All told, it is clear that, RPD needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. RPD has a short ratio of 10.99 and outstanding shares of 50.70M.
RPD has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.42 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.46. Rapid7 Inc. RPD also noted assets of $860.41 million at the end of the last quarter. Investors should also keep an eye on sector updates as RPD has historically followed its peers on positive news.
All told, Rapid7 Inc. RPD has strung together solid data and demonstrated underlying fundamentals. At its current valuation, RPD represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Rapid7 Inc. RPD is now commanding a market cap of 3.31B and a float of 49.52M. RPD is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of RPD stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in RPD, either long or short, and we have not been compensated for this article.