Rapid7, Inc. (NASDAQ:RPD) Stock Now Rated "Reduce" by Wall Street Analysts

Key Points

• Rapid7 has an average “Reduce” rating from 23 analysts, with five sell ratings, 17 holds and one buy. The average 12-month price target is $12.09, below the stock’s reported opening price of $16.56.
• Recent analyst actions were mixed but generally cautious: Mizuho raised its target to $13 while maintaining a neutral view, Barclays and JPMorgan rated the stock underweight, and Wall Street Zen upgraded it to buy.
• Rapid7 beat quarterly earnings and revenue expectations, reporting $0.44 EPS versus a $0.35 consensus and $210.88 million in revenue. However, revenue declined 1.5% year over year, and institutional investors own 95.66% of the shares.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) has received an average rating of "Reduce" from the twenty-three research firms that are presently covering the company, Marketbeat Ratings reports. Five analysts have rated the stock with a sell recommendation, seventeen have assigned a hold recommendation and one has issued a buy recommendation on the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $12.09.

A number of analysts recently issued reports on RPD shares. Mizuho raised their price target on Rapid7 from $11.00 to $13.00 and gave the stock a "neutral" rating in a research report on Thursday, October 15th. Citigroup reiterated a "neutral" rating on shares of Rapid7 in a research report on Wednesday, August 12th. Barclays increased their target price on shares of Rapid7 from $6.50 to $12.00 and gave the company an "underweight" rating in a research note on Tuesday, August 11th. JPMorgan Chase & Co. lowered shares of Rapid7 from a "neutral" rating to an "underweight" rating and set a $12.00 target price for the company. in a report on Tuesday, September 15th. Finally, Wall Street Zen raised shares of Rapid7 from a "hold" rating to a "buy" rating in a research note on Saturday, October 3rd.

Rapid7 Stock Performance

Shares of NASDAQ:RPD opened at $16.56 on Friday. Rapid7 has a 52 week low of $4.97 and a 52 week high of $18.72. The stock has a market capitalization of $1.12 billion, a P/E ratio of 53.42 and a beta of 1.02. The firm has a fifty day simple moving average of $12.89 and a two-hundred day simple moving average of $9.53. 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 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The technology company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.09. The company had revenue of $210.88 million for the quarter, compared to analysts' expectations of $208.23 million. Rapid7 had a return on equity of 27.89% and a net margin of 2.35%. The firm's revenue for the quarter was down 1.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.58 earnings per share. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. On average, analysts expect that Rapid7 will post 0.76 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Rapid7

Several institutional investors have recently bought and sold shares of the company. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Rapid7 during the third quarter worth about $405,000. Vise Technologies Inc. increased its holdings in shares of Rapid7 by 32.4% during the third quarter. Vise Technologies Inc. now owns 32,520 shares of the technology company's stock valued at $397,000 after acquiring an additional 7,957 shares in the last quarter. Pinnacle Wealth Planning Services Inc. increased its holdings in shares of Rapid7 by 34.5% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 5,752 shares of the technology company's stock valued at $70,000 after acquiring an additional 1,475 shares in the last quarter. Sterling Capital Management LLC raised its position in shares of Rapid7 by 1,771.9% in the 3rd quarter. Sterling Capital Management LLC now owns 23,530 shares of the technology company's stock valued at $288,000 after purchasing an additional 22,273 shares during the last quarter. Finally, CWA Asset Management Group LLC purchased a new position in shares of Rapid7 in the 3rd quarter valued at approximately $1,361,000. 95.66% of the stock is currently owned by institutional investors and hedge funds.

About Rapid7

Rapid7, Inc NASDAQ: RPD is a cybersecurity company that provides technology and services to help organizations identify, assess and manage security risk across their IT environments. Its offerings are designed to support security operations, vulnerability management, cloud security, application security and incident response.

The company's product portfolio includes the Insight platform and solutions such as InsightVM for vulnerability risk management, InsightIDR for security detection and response, InsightCloudSec for cloud security and compliance, and InsightAppSec for application security testing.

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