Rapid7 Inc (RPD, Financial), a leading cybersecurity company, has seen a significant surge in its stock price over the past week and three months. The company's stock price has gained 10.17% over the past week and 19.81% over the past three months, reflecting a strong market performance. However, the company's GF Value, which stands at $95.36, is lower than its past GF Value of $112.7. This indicates a possible value trap, suggesting that investors should think twice before investing. This was also the case three months ago, indicating a consistent trend.
Introduction to Rapid7 Inc (RPD, Financial)
Founded in 2000, Rapid7 Inc is a cybersecurity company that initially provided vulnerability management solutions. Over the years, the company has expanded its product portfolio to include extended detection and response (XDR), security information and event management (SIEM), cloud security, threat intelligence, application security, and security orchestration, automation, and response (SOAR). The Boston-based company went public in 2015 and has since been a significant player in the software industry. 
Profitability of Rapid7 Inc (RPD, Financial)
When it comes to profitability, Rapid7 Inc has a Profitability Rank of 3/10, indicating its relative profitability within the industry. The company's Operating Margin stands at -7.17%, which is better than 34.2% of companies in the industry. Furthermore, the company's ROA of -13.41% and ROIC of -4.30% are better than 25.98% and 37.69% of companies in the industry, respectively. 
Growth of Rapid7 Inc (RPD, Financial)
Rapid7 Inc has a Growth Rank of 7/10, indicating its relative growth within the industry. The company's 3-Year Revenue Growth Rate per Share is 20.40%, which is better than 74.05% of companies in the industry. Additionally, its 5-Year Revenue Growth Rate per Share is 20.80%, outperforming 83.22% of companies in the industry. The company's future total revenue growth rate estimate over the next 3 to 5 years is 13.19%, which is better than 59.29% of companies in the industry. Furthermore, the company's 3-Year EPS without NRI Growth Rate is 57.30%, which is better than 90.62% of companies in the industry. 
Holders of Rapid7 Inc (RPD, Financial) Stock
The top three holders of Rapid7 Inc's stock are Steven Cohen (Trades, Portfolio), Jefferies Group (Trades, Portfolio), and PRIMECAP Management (Trades, Portfolio). Steven Cohen (Trades, Portfolio) holds 1,937,015 shares, representing 3.18% of the total shares. Jefferies Group (Trades, Portfolio) holds 569,190 shares, accounting for 0.93% of the total shares. PRIMECAP Management (Trades, Portfolio) holds 188,850 shares, representing 0.31% of the total shares.
Competitors of Rapid7 Inc (RPD, Financial)
Rapid7 Inc faces competition from several companies within the software industry. These include Marqeta Inc (MQ, Financial) with a market capitalization of $2.82 billion, Endava PLC (DAVA, Financial) with a market capitalization of $3.06 billion, and Appian Corp (APPN, Financial) with a market capitalization of $2.92 billion.
Conclusion
In conclusion, Rapid7 Inc has shown strong stock performance, with significant gains over the past week and three months. However, the company's GF Value indicates a possible value trap, suggesting that investors should exercise caution. Despite this, the company has shown relative profitability and growth within the industry, and it has a strong shareholder base. However, it faces stiff competition within the software industry. Therefore, potential investors should carefully consider these factors before investing in Rapid7 Inc's stock.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
