Rapid7 (NASDAQ:RPD) Shares Gap Down - Should You Sell?

Key Points

• Rapid7 shares fell sharply at the open, dropping from a prior close of $12.79 to $12.12 before trading near $12.15.
• Analyst sentiment remains cautious: Rapid7 has a consensus rating of “Reduce”, with 17 Hold and five Sell ratings, and an average price target of $11.98.
• The company exceeded quarterly earnings and revenue expectations, reporting $0.44 EPS versus $0.35 expected and $210.88 million in revenue, though revenue declined 1.5% year over year.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $12.79, but opened at $12.12. Rapid7 shares last traded at $12.1450, with a volume of 397,145 shares changing hands.

Wall Street Analysts Forecast Growth

RPD has been the subject of several research reports. JPMorgan Chase & Co. reissued an "underweight" rating and set a $12.00 price objective on shares of Rapid7 in a research note on Tuesday. Raymond James Financial reissued an "outperform" rating and issued a $15.00 price target on shares of Rapid7 in a research note on Tuesday, August 11th. UBS Group boosted their price objective on Rapid7 from $7.00 to $12.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. Scotiabank raised their target price on shares of Rapid7 from $7.00 to $10.15 and gave the stock a "sector perform" rating in a report on Tuesday, August 11th. Finally, Piper Sandler lifted their target price on shares of Rapid7 from $8.00 to $12.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, seventeen have issued a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, Rapid7 currently has a consensus rating of "Reduce" and an average target price of $11.98.

Rapid7 Stock Performance

The stock has a market capitalization of $845.20 million, a PE ratio of 40.25 and a beta of 1.01. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.80 and a current ratio of 0.80. The firm has a 50 day moving average of $11.44 and a 200-day moving average of $8.35.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.09. The company had revenue of $210.88 million for the quarter, compared to the consensus estimate of $208.23 million. Rapid7 had a return on equity of 27.89% and a net margin of 2.35%.The firm's quarterly revenue was down 1.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.58 EPS. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. Research analysts forecast that Rapid7, Inc. will post 0.74 earnings per share for the current year.

Institutional Investors Weigh In On Rapid7

Institutional investors have recently modified their holdings of the stock. LSV Asset Management grew its holdings in shares of Rapid7 by 25.1% during the 4th quarter. LSV Asset Management now owns 982,397 shares of the technology company's stock valued at $14,932,000 after acquiring an additional 197,397 shares in the last quarter. Invenomic Capital Management LP raised its holdings in shares of Rapid7 by 1.8% during the fourth quarter. Invenomic Capital Management LP now owns 627,983 shares of the technology company's stock worth $9,545,000 after acquiring an additional 11,283 shares in the last quarter. Bank of America Corp DE acquired a new stake in Rapid7 during the second quarter valued at $6,861,000. SG Americas Securities LLC boosted its position in Rapid7 by 32.4% during the first quarter. SG Americas Securities LLC now owns 817,649 shares of the technology company's stock valued at $4,505,000 after purchasing an additional 200,033 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in Rapid7 in the second quarter valued at about $3,844,000. Institutional investors and hedge funds own 95.66% of the company's stock.

About Rapid7

Rapid7, Inc NASDAQ: RPD is a cybersecurity company that helps organizations identify, assess and manage security risks across their IT environments. Its offerings are designed to provide visibility into vulnerabilities, endpoints, users, applications, cloud infrastructure and other technology assets, enabling customers to prioritize threats and respond to security incidents.

The company delivers many of its products through the Rapid7 Insight platform. Key offerings include InsightVM for vulnerability risk management, InsightIDR for security information and event detection and response, InsightCloudSec for cloud security and risk management, and InsightConnect for security orchestration and automation.

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