Rapid7 (NASDAQ:RPD) Shares Gap Up - Should You Buy?

Key Points

• Rapid7 shares jumped sharply, opening at $12.90 versus a prior close of $11.79 and later trading at $13.35.
• Analysts remain cautious: the stock has a consensus “Reduce” rating, with 18 Holds, four Sells, and one Buy, while the average price target is $11.98.
• Rapid7 beat quarterly expectations with $0.44 in EPS versus $0.35 expected and $210.88 million in revenue, although revenue declined 1.5% year over year. Institutional investors own 95.66% of the shares.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $11.79, but opened at $12.90. Rapid7 shares last traded at $13.35, with a volume of 338,440 shares trading hands.

Wall Street Analyst Weigh In

RPD has been the topic of several research reports. Mizuho increased their price objective on shares of Rapid7 from $8.00 to $11.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 15th. Royal Bank Of Canada increased their price objective on shares of Rapid7 from $11.00 to $12.00 and gave the stock a "sector perform" rating in a report on Tuesday, August 11th. Truist Financial lifted their price objective on shares of Rapid7 from $6.00 to $10.00 and gave the company a "hold" rating in a research report on Tuesday, July 21st. Barclays boosted their target price on shares of Rapid7 from $6.50 to $12.00 and gave the company an "underweight" rating in a research note on Tuesday, August 11th. Finally, JPMorgan Chase & Co. upped their target price on shares of Rapid7 from $7.00 to $12.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $11.98.

Rapid7 Stock Performance

The company has a market cap of $900.94 million, a P/E ratio of 43.08 and a beta of 0.97. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.50. The company has a 50 day moving average price of $10.46 and a 200-day moving average price of $7.99.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings data 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 business had revenue of $210.88 million for the quarter, compared to analysts' expectations of $208.23 million. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. The company's revenue was down 1.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.58 earnings per share. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. Equities analysts expect that Rapid7, Inc. will post 0.74 EPS for the current fiscal year.

Institutional Trading of Rapid7

A number of institutional investors have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Rapid7 by 114.9% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,136,438 shares of the technology company's stock valued at $49,409,000 after buying an additional 1,142,148 shares during the period. Bank of America Corp DE acquired a new position in Rapid7 during the second quarter worth about $6,861,000. First Trust Advisors LP grew its holdings in Rapid7 by 48.3% during the fourth quarter. First Trust Advisors LP now owns 2,326,056 shares of the technology company's stock worth $35,356,000 after acquiring an additional 758,009 shares during the period. Vanguard Group Inc. raised its position in Rapid7 by 7.6% in the fourth quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company's stock worth $140,961,000 after acquiring an additional 653,498 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Rapid7 in the second quarter worth about $3,844,000. 95.66% of the stock is owned by institutional investors and hedge funds.

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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