Rapid7 (NASDAQ:RPD) Shares Gap Down - What's Next?

Key Points

• Rapid7 shares opened lower, falling from a prior close of $12.13 to $11.49 before recovering slightly to about $11.89.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with 18 Holds, four Sells and one Buy, and an average price target of $11.98.
• Rapid7 exceeded quarterly expectations with adjusted EPS of $0.44 versus the $0.35 estimate and revenue of $210.88 million, although revenue declined 1.5% year over year.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $12.13, but opened at $11.49. Rapid7 shares last traded at $11.8850, with a volume of 160,657 shares.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on RPD shares. Canaccord Genuity Group lifted their price objective on shares of Rapid7 from $7.00 to $14.00 and gave the company a "hold" rating in a research note on Tuesday, August 11th. Stephens restated a "positive" rating on shares of Rapid7 in a report on Tuesday, August 11th. UBS Group boosted their price target on Rapid7 from $7.00 to $12.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 11th. DA Davidson boosted their target price on Rapid7 from $5.25 to $9.00 and gave the stock an "underperform" rating in a report on Tuesday, August 11th. Finally, Morgan Stanley downgraded shares of Rapid7 from an "equal weight" rating to an "underweight" rating and set a $9.00 target price on the stock. in a report on Tuesday, July 21st. One investment analyst has rated the stock with a Buy rating, eighteen have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, Rapid7 presently has a consensus rating of "Reduce" and a consensus target price of $11.98.

Rapid7 Price Performance

The stock has a market cap of $793.97 million, a price-to-earnings ratio of 38.03 and a beta of 0.97. The stock has a fifty day simple moving average of $10.36 and a 200-day simple moving average of $7.98. 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 issued its quarterly earnings results on Monday, August 10th. The technology company reported $0.44 EPS for the quarter, topping 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 analyst estimates of $208.23 million. During the same period in the previous year, the company earned $0.58 earnings per share. The company's quarterly 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. As a group, equities research analysts expect that Rapid7, Inc. will post 0.74 EPS for the current year.

Institutional Trading of Rapid7

A number of hedge funds have recently bought and sold shares of the stock. Prudential Financial Inc. boosted its position in Rapid7 by 8.8% during the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company's stock worth $197,000 after purchasing an additional 690 shares during the period. GAMMA Investing LLC raised its position in shares of Rapid7 by 20.6% in the second quarter. GAMMA Investing LLC now owns 5,866 shares of the technology company's stock valued at $48,000 after purchasing an additional 1,000 shares during the period. Versant Capital Management Inc raised its position 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 purchasing an additional 1,238 shares during the period. Parallel Advisors LLC lifted its stake in shares of Rapid7 by 81.6% during the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company's stock worth $46,000 after buying an additional 1,364 shares during the last quarter. Finally, Headlands Technologies LLC acquired a new stake in shares of Rapid7 during the 2nd quarter worth about $44,000. 95.66% of the stock is owned by institutional investors.

About Rapid7

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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