Rapid7 (NASDAQ:RPD) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Rapid7 from “buy” to “hold.” The broader analyst consensus is “Reduce,” with one buy, 17 hold, and five sell ratings, and an average price target of $11.98.
• Rapid7 shares opened at $11.97 after falling 3.5%, with a market capitalization of approximately $806.8 million. The stock has traded between $4.97 and $20.95 over the past year.
• The company’s latest quarterly results exceeded expectations, reporting adjusted earnings of $0.44 per share versus a $0.35 consensus and revenue of $210.88 million, although revenue declined 1.5% year over year. Institutional investors own approximately 95.66% of the stock.

Rapid7 (NASDAQ:RPD - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other analysts have also weighed in on the company. UBS Group increased their price objective on Rapid7 from $7.00 to $12.00 and gave the company a "neutral" rating in a research note on Tuesday, August 11th. Scotiabank upped their price target on shares of Rapid7 from $7.00 to $10.15 and gave the company a "sector perform" rating in a report on Tuesday, August 11th. Truist Financial increased their price target on shares of Rapid7 from $6.00 to $10.00 and gave the company a "hold" rating in a research report on Tuesday, July 21st. Susquehanna raised their price target on shares of Rapid7 from $7.00 to $15.00 and gave the stock a "neutral" rating in a report on Wednesday, August 12th. Finally, JPMorgan Chase & Co. reaffirmed an "underweight" rating and set a $12.00 price objective on shares of Rapid7 in a research note on Tuesday. One analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $11.98.

Rapid7 Stock Down 3.5%

Shares of NASDAQ:RPD opened at $11.97 on Friday. The stock's 50-day moving average price is $11.53 and its 200-day moving average price is $8.50. Rapid7 has a 12-month low of $4.97 and a 12-month high of $20.95. The stock has a market capitalization of $806.78 million, a P/E ratio of 38.61 and a beta of 1.01. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.50.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.09. The company had revenue of $210.88 million during the quarter, compared to analyst estimates of $208.23 million. Rapid7 had a return on equity of 27.89% and a net margin of 2.35%.Rapid7's revenue for the quarter was down 1.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.58 EPS. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. On average, equities analysts anticipate that Rapid7 will post 0.74 earnings per share for the current year.

Institutional Investors Weigh In On Rapid7

Several hedge funds have recently added to or reduced their stakes in RPD. Quantinno Capital Management LP lifted its position in Rapid7 by 776.1% in the 1st quarter. Quantinno Capital Management LP now owns 260,359 shares of the technology company's stock valued at $1,435,000 after acquiring an additional 230,641 shares in the last quarter. Renaissance Technologies LLC boosted its stake 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 purchasing an additional 125,700 shares during the last quarter. Pacer Advisors Inc. increased its holdings in shares of Rapid7 by 24.3% in the 1st quarter. Pacer Advisors Inc. now owns 469,912 shares of the technology company's stock worth $2,589,000 after purchasing an additional 91,905 shares in the last quarter. Assenagon Asset Management S.A. increased its holdings in shares of Rapid7 by 113.7% in the 2nd quarter. Assenagon Asset Management S.A. now owns 163,844 shares of the technology company's stock worth $1,327,000 after purchasing an additional 87,178 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd purchased a new position in shares of Rapid7 in the first quarter worth $1,048,000. 95.66% of the stock is owned by institutional investors.

Rapid7 Company Profile

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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