Rapid7 (NASDAQ:RPD) Receives "Underweight" Rating from JPMorgan Chase & Co.

Key Points

• JPMorgan reiterated its “underweight” rating on Rapid7 and set a $12.00 price target, implying roughly 3.08% downside from the stock’s previous close.
• Analyst sentiment remains cautious: Rapid7 has a consensus “Reduce” rating and an average price target of $11.98, based on one Buy, 17 Hold, and five Sell ratings.
• Rapid7’s latest quarterly results exceeded expectations, with adjusted EPS of $0.44 versus a $0.35 consensus estimate and revenue of $210.88 million; institutional investors own 95.66% of the company.

Rapid7 (NASDAQ:RPD - Get Free Report)'s stock had its "underweight" rating reiterated by equities researchers at JPMorgan Chase & Co. in a research report issued on Tuesday, Benzinga reports. They currently have a $12.00 price target on the technology company's stock. JPMorgan Chase & Co.'s price objective would indicate a potential downside of 3.08% from the stock's previous close.

Several other brokerages have also recently weighed in on RPD. Raymond James Financial reiterated an "outperform" rating and issued a $15.00 price objective on shares of Rapid7 in a research note on Tuesday, August 11th. Jefferies Financial Group reissued a "hold" rating and issued a $12.00 price target on shares of Rapid7 in a report on Tuesday, August 11th. Wall Street Zen upgraded shares of Rapid7 from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Canaccord Genuity Group boosted their price objective on shares of Rapid7 from $7.00 to $14.00 and gave the company a "hold" rating in a research note on Tuesday, August 11th. Finally, Stephens reiterated a "positive" rating on shares of Rapid7 in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat.com, Rapid7 currently has a consensus rating of "Reduce" and a consensus price target of $11.98.

Rapid7 Price Performance

Shares of RPD stock traded down $0.41 during trading hours on Tuesday, reaching $12.38. The company's stock had a trading volume of 681,502 shares, compared to its average volume of 2,126,496. The company has a market capitalization of $834.48 million, a price-to-earnings ratio of 39.90 and a beta of 1.01. The firm's 50 day simple moving average is $11.44 and its 200-day simple moving average is $8.35. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.50. Rapid7 has a fifty-two week low of $4.97 and a fifty-two week high of $20.95.

Rapid7 (NASDAQ:RPD - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.09. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. The business had revenue of $210.88 million for the quarter, compared to analysts' expectations of $208.23 million. During the same quarter last year, the firm earned $0.58 EPS. The firm's revenue for the quarter was down 1.5% compared to the same quarter last year. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. Sell-side analysts forecast that Rapid7 will post 0.74 earnings per share for the current year.

Institutional Trading of Rapid7

Institutional investors and hedge funds have recently made changes to their positions in the company. Quantinno Capital Management LP grew its stake in Rapid7 by 776.1% during the first quarter. Quantinno Capital Management LP now owns 260,359 shares of the technology company's stock worth $1,435,000 after purchasing an additional 230,641 shares during the period. Renaissance Technologies LLC raised its holdings in Rapid7 by 535.0% during the 1st quarter. Renaissance Technologies LLC now owns 149,196 shares of the technology company's stock valued at $822,000 after buying an additional 125,700 shares during the last quarter. Pacer Advisors Inc. lifted its holdings in Rapid7 by 24.3% in the first quarter. Pacer Advisors Inc. now owns 469,912 shares of the technology company's stock worth $2,589,000 after buying an additional 91,905 shares during the period. Assenagon Asset Management S.A. raised its holdings in Rapid7 by 113.7% in the second quarter. Assenagon Asset Management S.A. now owns 163,844 shares of the technology company's stock worth $1,327,000 after buying an additional 87,178 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd purchased a new stake in shares of Rapid7 during the 1st quarter valued at about $1,048,000. Institutional investors own 95.66% of the company's stock.

About Rapid7

Rapid7, Inc NASDAQ: RPD is a cybersecurity company that helps organizations identify, assess and manage security risks across their IT environments. Its offerings are designed to provide visibility into vulnerabilities, endpoints, users, applications, cloud infrastructure and other technology assets, enabling customers to prioritize threats and respond to security incidents.

The company delivers many of its products through the Rapid7 Insight platform. Key offerings include InsightVM for vulnerability risk management, InsightIDR for security information and event detection and response, InsightCloudSec for cloud security and risk management, and InsightConnect for security orchestration and automation.

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