Rapid7 (NASDAQ:RPD) Shares Climb 7.5% - Time to Buy?

Key Points

• Rapid7 shares rose 7.5% to about $16.03, significantly above the analyst consensus price target of $12.09.
• Analyst sentiment remains cautious: one analyst rates the stock Buy, 17 rate it Hold and five rate it Sell, resulting in an overall “Reduce” consensus.
• Rapid7 beat quarterly expectations with adjusted EPS of $0.44 versus $0.35 expected and revenue of $210.88 million, although revenue declined 1.5% year over year. Institutional investors own approximately 95.7% of the company.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) shot up 7.5% on Monday. The company traded as high as $15.65 and last traded at $16.0280. Approximately 420,340 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 2,071,852 shares. The stock had previously closed at $14.91.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Robert W. Baird increased their price objective on shares of Rapid7 from $8.00 to $10.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 11th. JPMorgan Chase & Co. reiterated an "underweight" rating and issued a $12.00 target price on shares of Rapid7 in a research report on Tuesday, September 15th. Royal Bank Of Canada lifted their price objective on Rapid7 from $11.00 to $12.00 and gave the stock a "sector perform" rating in a report on Tuesday, August 11th. Stephens reaffirmed a "positive" rating on shares of Rapid7 in a research report on Tuesday, August 11th. Finally, Scotiabank lifted their price target on Rapid7 from $7.00 to $10.15 and gave the stock a "sector perform" rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and five have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $12.09.

Rapid7 Stock Up 12.9%

The company has a 50-day simple moving average of $12.36 and a 200 day simple moving average of $9.69. The company has a market cap of $1.13 billion, a P/E ratio of 54.51 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 (NASDAQ:RPD - Get Free Report) last announced its earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.09. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. The company had revenue of $210.88 million during the quarter, compared to the consensus estimate of $208.23 million. During the same period last year, the firm earned $0.58 earnings per share. 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, equities analysts anticipate that Rapid7, Inc. will post 0.76 EPS for the current year.

Institutional Trading of Rapid7

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE acquired a new position in shares of Rapid7 during the second quarter worth $6,861,000. SG Americas Securities LLC boosted its stake in shares of Rapid7 by 32.4% during the 1st quarter. SG Americas Securities LLC now owns 817,649 shares of the technology company's stock worth $4,505,000 after acquiring an additional 200,033 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Rapid7 in the second quarter worth approximately $3,844,000. Man Group plc acquired a new stake in Rapid7 during the 2nd quarter worth about $3,409,000. Finally, Pacer Advisors Inc. increased its position in Rapid7 by 24.3% in the 1st quarter. Pacer Advisors Inc. now owns 469,912 shares of the technology company's stock worth $2,589,000 after purchasing an additional 91,905 shares during the last quarter. Institutional investors and hedge funds own 95.66% of the company's stock.

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.

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