Rapid7 Inc Stock Buy Hold or Sell Recommendation
| RPD Stock | USD 46.60 0.43 0.93% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Rapid7 Inc is 'Hold'. Macroaxis provides Rapid7 buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Rapid7 positions. The advice algorithm takes into account all of Rapid7's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Rapid7's buy or sell advice are summarized below:
Real Value 48.02 | Target Price 53.11 | Hype Value 46.45 | Market Value 46.6 | Naive Value 43.32 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Rapid7 Inc given historical horizon and risk tolerance towards Rapid7. When Macroaxis issues a 'buy' or 'sell' recommendation for Rapid7 Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
Rapid7 |
Execute Rapid7 Buy or Sell Advice
The Rapid7 recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Rapid7 Inc. Macroaxis does not own or have any residual interests in Rapid7 Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Rapid7's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | 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 | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Rapid7 Trading Alerts and Improvement Suggestions
| Rapid7 Inc generated a negative expected return over the last 90 days | |
| The company 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. Debt can assist Rapid7 until it has trouble settling it off, either with new capital or with free cash flow. So, Rapid7's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Rapid7 Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Rapid7 to invest in growth at high rates of return. When we think about Rapid7's use of debt, we should always consider it together with cash and equity. | |
| 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 98.0% of Rapid7 shares are owned by institutional investors | |
| Latest headline from bizjournals.com: Rapid7 CEOs total compensation falls by 63 percent in 2023 |
Rapid7 Returns Distribution Density
The distribution of Rapid7's historical returns is an attempt to chart the uncertainty of Rapid7's future price movements. The chart of the probability distribution of Rapid7 daily returns describes the distribution of returns around its average expected value. We use Rapid7 Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Rapid7 returns is essential to provide solid investment advice for Rapid7.
| Mean Return | -0.22 | Value At Risk | -4.75 | Potential Upside | 3.16 | Standard Deviation | 2.41 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Rapid7 historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Rapid7 Stock 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 originates 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 | Geode Capital Management, Llc | 2023-12-31 | 1.3 M | Deutsche Bank Ag | 2023-12-31 | 1.3 M | Massachusetts Financial Services Company | 2023-12-31 | 1.2 M | Gw&k Investment Management, Llc | 2023-12-31 | 1.1 M | Credit Suisse First Boston (csfb) | 2023-12-31 | 1.1 M | Stephens Inv Mgmt Group Llc | 2023-12-31 | 1 M | Hood River Capital Management Llc | 2023-12-31 | 930.5 K | Mirae Asset Global Investments (korea) Co Ltd | 2023-12-31 | 856.4 K | Wellington Management Company Llp | 2023-12-31 | 844.3 K | Vanguard Group Inc | 2023-12-31 | 7 M | Blackrock Inc | 2023-12-31 | 6.2 M |
Rapid7 Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 6.1M | (7.9M) | (741K) | 19.6M | 22.5M | 23.6M | |
| Change In Cash | 23.8M | 50.2M | (8.6M) | 42.8M | 6.3M | 6.0M | |
| Free Cash Flow | (36.9M) | (15.0M) | 35.1M | 40.7M | 84.0M | 88.2M | |
| Depreciation | 16.5M | 22.6M | 33.5M | 41.0M | 45.9M | 48.2M | |
| Other Non Cash Items | 11.1M | 19.9M | 8.6M | 3.9M | 104.8M | 110.0M | |
| Capital Expenditures | 35.5M | 19.9M | 18.9M | 37.5M | 20.2M | 16.0M | |
| Net Income | (53.8M) | (98.8M) | (146.3M) | (124.7M) | (149.3M) | (141.8M) | |
| End Period Cash Flow | 123.4M | 173.6M | 165.0M | 207.8M | 213.6M | 113.6M | |
| Investments | 66.9M | (10.5M) | 51.9M | (40.0M) | (178.8M) | (169.8M) | |
| Net Borrowings | 222.8M | 222.4M | 355.0M | (83K) | (95.5K) | (90.7K) | |
| Change To Netincome | 40.4M | 66.8M | 107.7M | 118.3M | 136.0M | 142.8M | |
| Change Receivables | (14.8M) | (24.4M) | (25.5M) | (9.1M) | (8.1M) | (8.6M) |
Rapid7 Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Rapid7 or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Rapid7's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Rapid7 stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.4 | |
β | Beta against NYSE Composite | 1.99 | |
σ | Overall volatility | 2.46 | |
Ir | Information ratio | -0.13 |
Rapid7 Volatility Alert
Rapid7 Inc exhibits very low volatility with skewness of -0.47 and kurtosis of 1.09. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Rapid7's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Rapid7's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Rapid7 Fundamentals Vs Peers
Comparing Rapid7's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Rapid7's direct or indirect competition across all of the common fundamentals between Rapid7 and the related equities. This way, we can detect undervalued stocks with similar characteristics as Rapid7 or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Rapid7's fundamental indicators could also be used in its relative valuation, which is a method of valuing Rapid7 by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Rapid7 to competition |
| Fundamentals | Rapid7 | Peer Average |
| Return On Equity | -1.28 | -0.31 |
| Return On Asset | -0.0119 | -0.14 |
| Profit Margin | (0.19) % | (1.27) % |
| Operating Margin | 0.06 % | (5.51) % |
| Current Valuation | 3.5 B | 16.62 B |
| Shares Outstanding | 62.27 M | 571.82 M |
| Shares Owned By Insiders | 1.63 % | 10.09 % |
| Shares Owned By Institutions | 98.37 % | 39.21 % |
| Number Of Shares Shorted | 3.77 M | 4.71 M |
| Price To Earning | (18.03) X | 28.72 X |
| Price To Book | 57.92 X | 9.51 X |
| Price To Sales | 3.82 X | 11.42 X |
| Revenue | 777.71 M | 9.43 B |
| Gross Profit | 470.73 M | 27.38 B |
| EBITDA | (80.73 M) | 3.9 B |
| Net Income | (149.26 M) | 570.98 M |
| Cash And Equivalents | 239.71 M | 2.7 B |
| Cash Per Share | 4.08 X | 5.01 X |
| Total Debt | 1.02 B | 5.32 B |
| Debt To Equity | 6.49 % | 48.70 % |
| Current Ratio | 0.89 X | 2.16 X |
| Book Value Per Share | (1.92) X | 1.93 K |
| Cash Flow From Operations | 104.28 M | 971.22 M |
| Short Ratio | 5.02 X | 4.00 X |
| Earnings Per Share | (2.46) X | 3.12 X |
| Price To Earnings To Growth | (1.05) X | 4.89 X |
| Target Price | 60.85 | |
| Number Of Employees | 2.23 K | 18.84 K |
| Beta | 1.0 | -0.15 |
| Market Capitalization | 2.89 B | 19.03 B |
| Total Asset | 1.51 B | 29.47 B |
| Retained Earnings | (1.01 B) | 9.33 B |
| Working Capital | 64.66 M | 1.48 B |
Note: Disposition of 100 shares by Andrew Burton of Rapid7 at 53.76 subject to Rule 16b-3 [view details]
Rapid7 Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Rapid7 . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Rapid7 Buy or Sell Advice
When is the right time to buy or sell Rapid7 Inc? Buying financial instruments such as Rapid7 Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 912.6M | 914.3M | 1.0B | 520.8M | Total Assets | 1.3B | 1.4B | 1.5B | 1.6B |
Use Investing Ideas to Build Portfolios
In addition to having Rapid7 in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Pharmaceutical Products Thematic Idea Now
Pharmaceutical Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Pharmaceutical Products theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Pharmaceutical Products Theme or any other thematic opportunities.
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Check out Rapid7 Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Complementary Tools for Rapid7 Stock analysis
When running Rapid7's price analysis, check to measure Rapid7's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rapid7 is operating at the current time. Most of Rapid7's value examination focuses on studying past and present price action to predict the probability of Rapid7's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rapid7's price. Additionally, you may evaluate how the addition of Rapid7 to your portfolios can decrease your overall portfolio volatility.
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Is Rapid7's industry 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.
Earnings Share (2.46) | Revenue Per Share 12.8 | Quarterly Revenue Growth 0.113 | Return On Assets (0.01) | Return On Equity (1.28) |
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.
Please note, there is a significant difference between Rapid7's value and its price as these two are different measures arrived at by different 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.