Exploring Rapid7, Inc. (RPD) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind Rapid7, Inc. (RPD), a key player in extended risk and threat detection? As of December 31, 2024, institutional investors held a significant stake, with 70,967,532 shares. The company's annualized recurring revenue (ARR) reached $840 million, a 4% increase year-over-year, and full-year revenue hit $844 million, up 9% from the previous year. But who are the top shareholders influencing this growth, and what are their recent moves? Let's delve into the investor profile of Rapid7 (RPD) to uncover who's buying, who's selling, and the reasons driving their investment decisions.

Rapid7, Inc. (RPD) Who Invests in Rapid7, Inc. (RPD) and Why?

Understanding the investor profile of Rapid7, Inc. (RPD) involves examining the various types of investors, their motivations, and the strategies they employ. This provides a comprehensive view of the factors driving investment decisions related to Rapid7, Inc. (RPD).

Key Investor Types

The investor base of Rapid7, Inc. (RPD) is composed of a mix of retail and institutional investors. Institutional investors often hold a significant portion of the company's shares. Key investor types include:

• Institutional Investors: These include mutual funds, pension funds, insurance companies, and investment firms that manage large sums of money on behalf of others.
• Retail Investors: Individual investors who buy and sell securities for their own accounts.
• Hedge Funds: Investment partnerships that use pooled funds and employ various strategies to earn active return, or alpha, for their investors.

As of February 8, 2024, institutional investors held approximately 95.80% of Rapid7, Inc. (RPD)'s shares.

Investment Motivations

Investors are attracted to Rapid7, Inc. (RPD) for several reasons, primarily related to the company's growth prospects and market position:

• Growth Prospects: Rapid7, Inc. (RPD) operates in the cybersecurity industry, which is experiencing substantial growth due to increasing cyber threats and the need for robust security solutions.
• Market Position: Rapid7, Inc. (RPD) has established itself as a key player in the vulnerability management, security information and event management (SIEM), and application security markets.

Investment Strategies

Different investors adopt various strategies when investing in Rapid7, Inc. (RPD):

• Long-Term Holding: Many institutional investors adopt a long-term holding strategy, maintaining their positions for extended periods to benefit from the company's sustained growth.
• Short-Term Trading: Some investors, particularly hedge funds, may engage in short-term trading strategies to capitalize on price fluctuations.
• Value Investing: Investors may identify Rapid7, Inc. (RPD) as undervalued based on fundamental analysis, anticipating that the market will eventually recognize its intrinsic value.

The following table provides a snapshot of major institutional holders of Rapid7, Inc. (RPD) as of December 31, 2024:

Understanding who invests in Rapid7, Inc. (RPD) and why helps stakeholders gain insights into market sentiment and potential future performance. For further information on Rapid7, Inc. (RPD)'s financial standing, you can explore: Breaking Down Rapid7, Inc. (RPD) Financial Health: Key Insights for Investors

Rapid7, Inc. (RPD) Institutional Ownership and Major Shareholders of Rapid7, Inc. (RPD)

Institutional ownership in Rapid7, Inc. (RPD) reflects the extent to which large financial institutions, such as mutual funds, hedge funds, and pension funds, hold the company’s shares. Analyzing this ownership can provide insights into market sentiment and potential stock performance. These major players often have significant influence due to the size of their holdings and their resources for in-depth analysis.

Here’s an overview of Rapid7, Inc. (RPD)’s top institutional investors and their recent activity:

• Vanguard Group Inc.: As a significant institutional investor, Vanguard typically holds a substantial number of shares in Rapid7, Inc. (RPD).
• BlackRock Fund Advisors: BlackRock is another major institutional holder in Rapid7, Inc. (RPD).
• JPMorgan Investment Management Inc.: JPMorgan Investment Management Inc. holds a notable position in Rapid7, Inc. (RPD).
• Select Sector SPDR Trust: As an exchange-traded fund (ETF), Select Sector SPDR Trust includes Rapid7, Inc. (RPD) as part of its portfolio.
• Geode Capital Management LLC: Geode Capital Management LLC is also among the top institutional investors in Rapid7, Inc. (RPD).

Changes in institutional ownership can be a key indicator of investor confidence. Increases in holdings may suggest a positive outlook on Rapid7, Inc. (RPD)’s future, while decreases could indicate concerns or shifts in investment strategy. Recent transactions by major institutional investors can provide valuable insights.

The role of institutional investors in Rapid7, Inc. (RPD)’s stock price and strategy is considerable. Their trading activity can drive significant price movements, and their investment decisions often influence market perception of the company. Companies often monitor institutional ownership to understand investor sentiment and adjust their strategies accordingly.

Here is a table summarizing some of the major institutional shareholders of Rapid7, Inc. (RPD):

For further insights into Rapid7, Inc. (RPD)’s financial health, you might find this resource helpful: Breaking Down Rapid7, Inc. (RPD) Financial Health: Key Insights for Investors

Rapid7, Inc. (RPD) Key Investors and Their Impact on Rapid7, Inc. (RPD)

Understanding who invests in Rapid7, Inc. (RPD) and why can offer valuable insights into the company's potential and stability. Examining the profiles of key investors, their recent activities, and their influence provides a clearer picture of market sentiment and strategic direction.

While specific details on all investors and their complete holdings can fluctuate, we can analyze available data to identify significant stakeholders and their potential impact.

Institutional investors often hold substantial shares in publicly traded companies like Rapid7, Inc. (RPD). These firms include mutual funds, pension funds, hedge funds, and insurance companies. Their investment decisions can significantly influence stock prices.

Examples of the types of institutional investors that may hold positions in Rapid7, Inc. (RPD) could include:

• Vanguard Group: Known for its large index funds and long-term investment strategies.
• BlackRock: Another major asset manager with diverse holdings.
• State Street Corporation: Offers a range of investment management services.
• Fidelity Investments: A well-known investment firm with a mix of actively managed and passively managed funds.

These firms typically make investment decisions based on in-depth research and analysis. Their actions can reflect confidence (or lack thereof) in Rapid7, Inc. (RPD)'s business model, growth prospects, and competitive positioning.

Hedge funds may also hold positions in Rapid7, Inc. (RPD). These funds often employ more active trading strategies and may take larger, more concentrated positions. Their involvement can sometimes lead to increased stock volatility.

Information regarding specific transactions by major investors can sometimes be found in Form 4 filings with the Securities and Exchange Commission (SEC). These filings disclose when insiders (such as company executives and board members) and large shareholders buy or sell shares of a company.

Tracking these filings can provide clues about investor sentiment and potential future stock movements. However, it's important to consider that not all insider transactions are indicative of a company's prospects. Some transactions may be related to personal financial planning or diversification strategies.

Activist investors sometimes take significant stakes in companies with the goal of influencing management decisions. They may push for changes in strategy, operations, or capital allocation.

While it's not always the case, activist investor involvement can sometimes lead to significant changes within a company, which can impact shareholder value.

To gain a deeper understanding of Rapid7, Inc. (RPD)'s strategic goals and values, refer to the following resource: Mission Statement, Vision, & Core Values of Rapid7, Inc. (RPD).

Analyzing the investor profile of Rapid7, Inc. (RPD) involves identifying key institutional and individual investors, understanding their investment strategies, and monitoring their recent activities. This information, combined with a thorough analysis of the company's fundamentals, can help investors make informed decisions.

Information on institutional investors and their holdings are usually available from various financial data providers. Here is an example of a table that shows institutional investors:

Rapid7, Inc. (RPD) Market Impact and Investor Sentiment

Understanding the market impact and investor sentiment surrounding Rapid7, Inc. (RPD) is crucial for stakeholders looking to make informed decisions. This encompasses analyzing major shareholders' perspectives, recent market reactions, and insights from financial analysts.

Investor Sentiment:

• As of April 2025, the sentiment of major shareholders appears mixed. Analyst ratings show a consensus of 'Buy,' but recent trends indicate some caution.
• Some analysts have lowered their price targets, reflecting concerns about slowing revenue growth and extended sales cycles.
• Conversely, Rapid7's management expresses confidence in their strategic initiatives, particularly in the Managed Detection and Response (MDR) business.

Major Shareholders:

Institutional investors hold a significant portion of Rapid7's shares. Key shareholders include:

• Vanguard Group Inc: Holding approximately 8.62 million shares, representing 13.47% ownership.
• BlackRock Inc: Owning around 6.5 million shares, which accounts for 10.16% of the company.
• UBS Group AG: With approximately 5.02 million shares, holding a 7.85% stake.
• Jana Partners Management, LP: Holding 3.69 million shares, representing about 5.77% ownership.

Insiders also hold a notable percentage of shares:

• Timothy P. McAdam: The largest individual shareholder, owning 10.40 million shares, which is 16.25% of the company.
• Benjamin Holzman: Holding 9.57 million shares, representing 14.96% ownership.
• Jay C. Hoag: Owns 9.13 million shares, accounting for 14.28% of the company.

Recent Market Reactions:

Rapid7's stock has experienced significant volatility. As of April 11, 2025, the share price was $23.57, a substantial decrease from $45.75 on April 15, 2024, marking a 48.48% decline. This drop reflects valuation compression due to slower revenue growth and the need for continued R&D investment.

Recent market reactions include:

• A settlement with activist hedge fund JANA Partners, leading to changes in the board of directors.
• Downward revisions of earnings expectations by analysts, though net income is still expected to grow this year.
• Lowered full-year 2024 ARR guidance due to extended sales cycles.

Analyst Perspectives:

Analysts' opinions on Rapid7 are varied, with an average 12-month price target of $38.89. However, individual forecasts range from $26 to $52. Recent ratings and actions include:

• Morgan Stanley: Maintains a 'Hold' rating with a lowered price target of $26.
• Barclays: Holds an 'Equal-Weight' rating, also with a reduced price target of $26.
• Jefferies: Maintains a 'Strong Buy' rating but lowered the price target from $45 to $35.

These adjustments reflect concerns about Rapid7's growth prospects and market headwinds.

Stock Forecasts:

Different sources provide varying forecasts for Rapid7's stock price:

• CoinCodex: Predicts a trading range between $20.54 and $37.76 in 2025, with an average price of $29.67.
• StockScan: Expects an average price of $41.84 in 2025, with a high of $60.10 and a low of $23.57.
• WallStreetZen: Estimates a 1-year price target of $36.36, with a high forecast of $45.00 and a low of $26.00.

These forecasts suggest potential upside, but also highlight the uncertainty surrounding Rapid7's future performance.

Additional Factors:

• Rapid7's revenue for the last twelve months was $844.01 million, with a growth of 8.53%.
• The company maintains a gross profit margin of 70.26%.
• Rapid7 is investing in its MDR business and other strategic initiatives to drive growth.

For more insights into Rapid7's background and operations, consider visiting: Rapid7, Inc. (RPD): History, Ownership, Mission, How It Works & Makes Money.

Here is a summary table of Rapid7's Major Shareholders as of December 31, 2024: