Rapid7 (RPD) Stock Jumps 3.6%: Will It Continue to Soar?
Rapid7 (RPD) shares rallied 3.6% in the last trading session to close at $107.13. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.6% gain over the past four weeks.
The upswing in share price came after the company announced it has acquired IntSights Cyber Intelligence, a leader in contextualized external threat intelligence and proactive threat remediation, for $335 million in cash and stock.
With the purchase of IntSights, Rapid7 will combine its existing threat intelligence technologies with IntSights’ threat detection and remediation capabilities in a single customer offering. This acquisition also enhances Rapid7’s industry-leading cloud-native extended detection and response (XDR) offering, InsightIDR, by enabling high-quality, high-fidelity alerts to ensure efficient security operations, earlier threat detection, and accelerated response times.
This cybersecurity company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -40%. Revenues are expected to be $122.73 million, up 24.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Rapid7, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RPD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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