Rapid7 Sees Unusually Large Options Volume (NASDAQ:RPD)

Key Points

• Rapid7 saw unusually heavy call-option activity: Investors purchased 4,117 call options, about 260% above the typical volume of 1,145.
• Shares traded at $16.73, down $0.95, while remaining near their 52-week high of $18.82. The company recently beat quarterly EPS and revenue estimates, though revenue declined 1.5% year over year.
• Analyst sentiment remains cautious: Rapid7 has an average “Reduce” rating and a $12.09 target price, despite institutional investors owning 95.66% of its stock.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) saw some unusual options trading activity on Thursday. Investors purchased 4,117 call options on the company. This is an increase of approximately 260% compared to the typical volume of 1,145 call options.

Rapid7 Price Performance

Rapid7 stock traded down $0.95 during midday trading on Thursday, reaching $16.73. The company's stock had a trading volume of 1,395,036 shares, compared to its average volume of 2,101,254. The business has a 50-day moving average price of $12.70 and a 200-day moving average price of $9.50. The stock has a market cap of $1.13 billion, a PE ratio of 53.79 and a beta of 1.02. 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 52 week low of $4.97 and a 52 week high of $18.82.

Rapid7 (NASDAQ:RPD - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The technology company reported $0.44 EPS for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $208.23 million. During the same period in the prior year, the company earned $0.58 EPS. Rapid7's revenue was down 1.5% compared to the same quarter last year. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. On average, sell-side analysts predict that Rapid7 will post 0.76 EPS for the current year.

Institutional Investors Weigh In On Rapid7

Institutional investors and hedge funds have recently made changes to their positions in the business. GAMMA Investing LLC grew its holdings in shares of Rapid7 by 20.6% during the second quarter. GAMMA Investing LLC now owns 5,866 shares of the technology company's stock valued at $48,000 after buying an additional 1,000 shares during the last quarter. Versant Capital Management Inc grew its holdings in shares of Rapid7 by 13.4% in the second quarter. Versant Capital Management Inc now owns 10,469 shares of the technology company's stock valued at $85,000 after acquiring an additional 1,238 shares in the last quarter. Pinnacle Wealth Planning Services Inc. increased its holdings in Rapid7 by 34.5% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 5,752 shares of the technology company's stock worth $70,000 after buying an additional 1,475 shares during the last quarter. Parallel Advisors LLC lifted its stake in Rapid7 by 108.8% in the first quarter. Parallel Advisors LLC now owns 6,340 shares of the technology company's stock valued at $35,000 after purchasing an additional 3,304 shares during the last quarter. Finally, Allworth Financial LP grew its stake in shares of Rapid7 by 511.3% during the 2nd quarter. Allworth Financial LP now owns 5,245 shares of the technology company's stock worth $42,000 after acquiring an additional 4,387 shares during the period. Institutional investors own 95.66% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on RPD shares. Citigroup reaffirmed a "neutral" rating on shares of Rapid7 in a research report on Wednesday, August 12th. Stephens restated a "positive" rating on shares of Rapid7 in a research report on Tuesday, August 11th. Barclays raised their target price on shares of Rapid7 from $6.50 to $12.00 and gave the stock an "underweight" rating in a report on Tuesday, August 11th. Scotiabank lifted 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, August 11th. Finally, Raymond James Financial reiterated an "outperform" rating and issued a $15.00 price target on shares of Rapid7 in a research note on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, Rapid7 presently has an average rating of "Reduce" and an average target price of $12.09.

Rapid7 Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.