Long Position on RPD @ $50.00 on 4/28/2023 (Momentum)

Rapid7, Inc. (RPD) provides cybersecurity solutions.

The company offers a cloud-native insight platform that enables customers to create and manage analytics-driven cybersecurity risk management programs. 

Its platform includes InsightIDR, an incident detection and response solution; InsightCloudSec, a cloud risk and compliance management platform; InsightVM helps organizations to discover and remediate vulnerability risk across their network; InsightAppSec that provides dynamic application security testing; and InsightConnect, a security orchestration and automation response solution.

The company also provides Threat Intelligence that finds and mitigates threats; Nexpose, an on-premise version of company's vulnerability risk management solution; AppSpider, an on-premise version of company's application security testing solution; and Metasploit, an industry-leading penetration testing software solution, as well as professional services. 

Shares have formed a bullish "cup and handle" and are expected to move higher. On February 8th, RPD reported Quarter December 2022 earnings of $0.37 per share on revenue of $184.5 million. The consensus earnings estimate was $0.18 per share on revenue of $179.3 million. 

The company said it expects first quarter non-GAAP earnings of $0.07 to $0.10 per share on revenue of $180.0 million to $182.0 million. The prior consensus earnings estimate was $0.07 per share on revenue of $186.15 million for the quarter ending March 31, 2023. The company also said it expects 2023 non-GAAP earnings of $0.81 to $0.88 per share on revenue of $771.0 million to $778.0 million. The prior consensus earnings estimate was $0.63 per share on revenue of $792.38 million for the year ending December 31, 2023. 

RPD reports on May 9th.

Entry Point: $50.00

Stop Loss: $47.00

Trading Range: $26.485 to $101.19

Target Price: $55.00

Position closed on 5/2/2023 at price of $47.00 with a -6.00% loss in 4 days.

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