Janus Henderson Group PLC Sells 92,611 Shares of Rapid7, Inc. $RPD

Key Points

• Janus Henderson cut its Rapid7 stake by 60.1%, selling 92,611 shares and retaining 61,368 shares worth approximately $338,000. Institutional investors and hedge funds still own 95.66% of the company.
• Rapid7 exceeded second-quarter earnings and revenue expectations, reporting adjusted EPS of $0.44 versus $0.35 expected and revenue of $210.9 million versus $208.2 million. However, revenue declined 1.5% year over year and third-quarter revenue guidance was slightly below consensus.
• Analyst sentiment remains cautious: Rapid7 has a consensus “Reduce” rating and an average price target of $11.61, below the reported share price of $13.38, despite several firms raising their targets after the earnings report.

Janus Henderson Group PLC trimmed its stake in shares of Rapid7, Inc. (NASDAQ:RPD - Free Report) by 60.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 61,368 shares of the technology company's stock after selling 92,611 shares during the quarter. Janus Henderson Group PLC owned 0.09% of Rapid7 worth $338,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of the stock. Prudential Financial Inc. lifted its position in shares of Rapid7 by 8.8% during the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company's stock worth $197,000 after buying an additional 690 shares during the period. Parallel Advisors LLC grew its position in Rapid7 by 81.6% in the fourth quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company's stock valued at $46,000 after acquiring an additional 1,364 shares during the period. KBC Group NV raised its stake in Rapid7 by 124.0% during the fourth quarter. KBC Group NV now owns 3,310 shares of the technology company's stock worth $50,000 after acquiring an additional 1,832 shares in the last quarter. Headlands Technologies LLC bought a new position in shares of Rapid7 during the second quarter valued at $44,000. Finally, Swiss National Bank boosted its stake in shares of Rapid7 by 1.8% in the 3rd quarter. Swiss National Bank now owns 112,000 shares of the technology company's stock valued at $2,100,000 after purchasing an additional 2,000 shares in the last quarter. 95.66% of the stock is owned by institutional investors and hedge funds.

Rapid7 Stock Performance

Shares of NASDAQ:RPD opened at $13.38 on Wednesday. The business has a fifty day moving average of $9.34 and a 200-day moving average of $7.96. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.78 and a current ratio of 0.78. Rapid7, Inc. has a twelve month low of $4.97 and a twelve month high of $21.78. The firm has a market cap of $894.19 million, a PE ratio of 43.16 and a beta of 0.97.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.09. Rapid7 had a net margin of 2.35% and a return on equity of 29.93%. The business had revenue of $210.88 million for the quarter, compared to the consensus estimate of $208.23 million. During the same quarter in the prior 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. On average, equities research analysts predict that Rapid7, Inc. will post 0.63 EPS for the current fiscal year.

Rapid7 News Summary

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q2 earnings topped expectations: Rapid7 reported adjusted EPS of $0.44, above the $0.35 consensus estimate, while revenue of $210.9 million also exceeded expectations of $208.2 million. The results prompted a positive market reaction. Rapid7 Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profit outlook was raised relative to consensus: Rapid7 guided for third-quarter EPS of $0.44 to $0.47, ahead of the $0.38 analyst estimate. This suggests management expects near-term profitability to remain stronger than Wall Street had projected.
• Positive Sentiment: Analysts lifted price targets after the report: JPMorgan raised its target to $12 from $7, Stephens to $12 from $10, and Baird to $10 from $8. The revisions indicate that the better-than-expected quarter improved analyst views, even though their ratings stayed neutral or equal weight.
• Neutral Sentiment: Third-quarter revenue guidance was slightly below expectations: Rapid7 forecast revenue of $208 million to $210 million, compared with the $210.5 million consensus estimate. The outlook implies continued pressure on top-line growth despite stronger profitability.
• Neutral Sentiment: Short-interest data showed no meaningful positioning: Reported short interest was zero shares with a zero-day days-to-cover ratio, offering no evidence of a short squeeze or significant bearish short positioning. The reported figures may reflect incomplete data.
• Negative Sentiment: Underlying growth and earnings trends remain mixed: Q2 revenue declined approximately 1.5% year over year, and EPS fell from $0.58 in the prior-year quarter. In addition, the newly raised analyst targets of $10 to $12 remain below the recent share price, signaling limited upside according to those firms.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the stock. Raymond James Financial reaffirmed an "outperform" rating and issued a $15.00 target price on shares of Rapid7 in a report on Tuesday. Scotiabank boosted their price target on shares of Rapid7 from $7.00 to $10.15 and gave the company a "sector perform" rating in a research report on Tuesday. Canaccord Genuity Group set a $14.00 price objective on shares of Rapid7 in a research note on Tuesday. JPMorgan Chase & Co. upped their price objective on shares of Rapid7 from $7.00 to $12.00 and gave the stock a "neutral" rating in a research note on Tuesday. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Rapid7 in a report on Wednesday, June 24th. One analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $11.61.

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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