Rapid7, Inc. (NASDAQ:RPD) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Rapid7 has a consensus “Reduce” rating from 23 analysts: four recommend selling, 18 advise holding, and one recommends buying. The average 12-month price target is approximately $11.98.
• Recent analyst actions were mixed but generally cautious, with several firms maintaining hold or neutral ratings while Morgan Stanley downgraded the stock to underweight and DA Davidson rated it underperform.
• Rapid7 exceeded quarterly expectations, reporting $0.44 EPS versus the $0.35 consensus and revenue of $210.88 million, though revenue declined 1.5% year over year. The stock opened at $10.50, well below its 12-month high of $20.95.

Shares of Rapid7, Inc. (NASDAQ:RPD - Get Free Report) have been assigned a consensus recommendation of "Reduce" from the twenty-three research firms that are presently covering the company, MarketBeat reports. Four research analysts have rated the stock with a sell recommendation, eighteen have given a hold recommendation and one has issued a buy recommendation on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $11.9816.

RPD has been the topic of several research analyst reports. Truist Financial boosted their target price on shares of Rapid7 from $6.00 to $10.00 and gave the stock a "hold" rating in a report on Tuesday, July 21st. Scotiabank raised their target price on shares of Rapid7 from $7.00 to $10.15 and gave the company a "sector perform" rating in a research note on Tuesday, August 11th. Morgan Stanley downgraded shares of Rapid7 from an "equal weight" rating to an "underweight" rating and set a $9.00 price target on the stock. in a report on Tuesday, July 21st. Robert W. Baird boosted their price target on shares of Rapid7 from $8.00 to $10.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 11th. Finally, DA Davidson increased their price objective on shares of Rapid7 from $5.25 to $9.00 and gave the company an "underperform" rating in a report on Tuesday, August 11th.

Rapid7 Stock Performance

NASDAQ:RPD opened at $10.50 on Friday. 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 has a 12-month low of $4.97 and a 12-month high of $20.95. The stock has a 50-day moving average price of $11.38 and a 200 day moving average price of $8.27. The stock has a market capitalization of $707.70 million, a P/E ratio of 33.87 and a beta of 1.01.

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

Hedge Funds Weigh In On Rapid7

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Parallel Advisors LLC increased its stake in Rapid7 by 108.8% in the 1st quarter. Parallel Advisors LLC now owns 6,340 shares of the technology company's stock worth $35,000 after acquiring an additional 3,304 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Rapid7 during the 2nd quarter valued at approximately $38,000. Allworth Financial LP purchased a new position in shares of Rapid7 in the second quarter valued at $42,000. Headlands Technologies LLC purchased a new position in shares of Rapid7 in the second quarter valued at $44,000. Finally, GAMMA Investing LLC grew its holdings in shares of Rapid7 by 20.6% in the second quarter. GAMMA Investing LLC now owns 5,866 shares of the technology company's stock valued at $48,000 after purchasing an additional 1,000 shares in the last quarter. 95.66% of the stock is owned by institutional investors.

Rapid7 Company Profile

Rapid7, Inc is a publicly traded cybersecurity company headquartered in Boston, Massachusetts. Since its founding in 2000, the company has specialized in delivering cloud-based security data and analytics solutions designed to help organizations detect, investigate, and remediate cyber threats. Rapid7 operates under the NASDAQ symbol “RPD” and serves a broad range of industries, including technology, financial services, healthcare, retail, and the public sector.

The core of Rapid7's offering is its Insight platform, a unified, cloud-native security operations and analytics suite.

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