Insider Confidence On Display: Corey Thomas Acquires $200K In Rapid7 Stock

Corey Thomas, CEO at Rapid7 (NASDAQ:RPD), reported an insider buy on November 24, according to a new SEC filing.

What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that Thomas bought 14,500 shares of Rapid7, amounting to a total of $200,390.

In the Tuesday's morning session, Rapid7's shares are currently trading at $14.96, experiencing a up of 5.39%.

Get to Know Rapid7 Better

Founded in 2000, Rapid7 is a cybersecurity company that began providing vulnerability management solutions. It has, however, expanded its portfolio to provide extended detection and response; security information and event management; cloud security, threat intelligence, and application security; and security orchestration, automation, and response. The Boston-based company went public in 2015.

Unraveling the Financial Story of Rapid7

Revenue Growth: Rapid7's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 1.54%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Interpreting Earnings Metrics:

• Gross Margin: With a low gross margin of 70.19%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Rapid7's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.15.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 7.63, caution is advised due to increased financial risk.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: Rapid7's P/E ratio of 40.57 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.06 is lower than the industry average, implying a discounted valuation for Rapid7's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 17.27, Rapid7 presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Breaking Down the Significance of Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Rapid7's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.