DA Davidson Comments on Rapid7's Q3 Earnings (NASDAQ:RPD)

Key Points

• DA Davidson predicts that Rapid7 will earn $0.08 per share for Q3 2025, with a price objective of $21.00 and an "Underperform" rating.
• Rapid7 reported $0.58 EPS for the last quarter, exceeding analysts' expectations of $0.44, with revenue increasing by 3.0% year-over-year to $214.19 million.
• The company's stock has a strong rate of institutional ownership at 95.66%, with various analysts giving mixed ratings resulting in an average rating of "Hold" and a target price of $29.22.

Rapid7, Inc. (NASDAQ:RPD - Free Report) - Stock analysts at DA Davidson issued their Q3 2025 earnings per share (EPS) estimates for shares of Rapid7 in a research note issued to investors on Friday, August 8th. DA Davidson analyst R. Kessinger forecasts that the technology company will post earnings per share of $0.08 for the quarter. DA Davidson currently has a "Underperform" rating and a $21.00 target price on the stock. The consensus estimate for Rapid7's current full-year earnings is $0.35 per share. DA Davidson also issued estimates for Rapid7's FY2025 earnings at $0.54 EPS.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The technology company reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.14. Rapid7 had a return on equity of 149.12% and a net margin of 3.41%. The company had revenue of $214.19 million for the quarter, compared to analysts' expectations of $212.17 million. During the same period last year, the firm earned $0.58 EPS. The firm's revenue for the quarter was up 3.0% on a year-over-year basis.

A number of other equities analysts have also recently issued reports on the company. JPMorgan Chase & Co. decreased their target price on Rapid7 from $28.00 to $23.00 and set a "neutral" rating on the stock in a report on Monday, August 4th. Mizuho decreased their target price on Rapid7 from $27.00 to $25.00 and set a "neutral" rating on the stock in a report on Friday, August 8th. Canaccord Genuity Group decreased their target price on Rapid7 from $39.00 to $32.00 and set a "hold" rating on the stock in a report on Monday. Susquehanna decreased their target price on Rapid7 from $30.00 to $18.00 and set a "neutral" rating on the stock in a report on Monday. Finally, Robert W. Baird lifted their target price on Rapid7 from $26.00 to $28.00 and gave the stock a "neutral" rating in a report on Tuesday, May 13th. One investment analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, five have given a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $27.67.

Rapid7 Price Performance

Shares of RPD stock traded up $1.20 during mid-day trading on Monday, hitting $21.34. 812,552 shares of the stock traded hands, compared to its average volume of 870,864. Rapid7 has a twelve month low of $17.83 and a twelve month high of $44.48. The firm has a market cap of $1.37 billion, a price-to-earnings ratio of 52.08 and a beta of 0.96. The company's 50-day simple moving average is $22.71 and its 200-day simple moving average is $26.13. The company has a debt-to-equity ratio of 9.84, a quick ratio of 1.24 and a current ratio of 1.36.

Institutional Trading of Rapid7

Several hedge funds and other institutional investors have recently modified their holdings of RPD. Invesco Ltd. boosted its position in Rapid7 by 5.4% during the fourth quarter. Invesco Ltd. now owns 36,487 shares of the technology company's stock valued at $1,468,000 after purchasing an additional 1,860 shares during the last quarter. Legal & General Group Plc boosted its position in Rapid7 by 0.9% during the fourth quarter. Legal & General Group Plc now owns 707,556 shares of the technology company's stock valued at $28,465,000 after purchasing an additional 6,269 shares during the last quarter. Marshall Wace LLP boosted its position in Rapid7 by 144.2% during the fourth quarter. Marshall Wace LLP now owns 475,695 shares of the technology company's stock valued at $19,137,000 after purchasing an additional 280,913 shares during the last quarter. Canada Pension Plan Investment Board boosted its position in Rapid7 by 31.7% during the fourth quarter. Canada Pension Plan Investment Board now owns 89,300 shares of the technology company's stock valued at $3,593,000 after purchasing an additional 21,500 shares during the last quarter. Finally, CANADA LIFE ASSURANCE Co boosted its position in Rapid7 by 7.8% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 305,357 shares of the technology company's stock valued at $12,284,000 after purchasing an additional 22,043 shares during the last quarter. Institutional investors and hedge funds own 95.66% of the company's stock.

Rapid7 Company Profile

Rapid7, Inc provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions.