Rapid7 (NASDAQ:RPD) Shares Up 7% - Time to Buy?

Key Points

• Rapid7 shares rose 7% to approximately $12.52, although trading volume was 93% below the average session volume.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with one Buy, 17 Hold, and five Sell ratings, and an average price target of $11.98.
• Rapid7 exceeded quarterly expectations with adjusted EPS of $0.44 versus the $0.35 consensus and revenue of $210.88 million, but revenue declined 1.5% year over year.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) traded up 7% during mid-day trading on Wednesday. The company traded as high as $12.33 and last traded at $12.5220. 152,743 shares traded hands during mid-day trading, a decline of 93% from the average session volume of 2,113,842 shares. The stock had previously closed at $11.70.

Wall Street Analyst Weigh In

A number of research analysts recently commented on RPD shares. Weiss Ratings raised shares of Rapid7 from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, September 14th. Barclays lifted 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. Scotiabank boosted their price target on shares of Rapid7 from $7.00 to $10.15 and gave the company a "sector perform" rating in a report on Tuesday, August 11th. Jefferies Financial Group reiterated a "hold" rating and set a $12.00 price objective on shares of Rapid7 in a report on Tuesday, August 11th. Finally, Morgan Stanley cut Rapid7 from an "equal weight" rating to an "underweight" rating and set a $9.00 price objective for the company. in a research report on Tuesday, July 21st. One research analyst has rated the stock with a Buy rating, seventeen have issued a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, Rapid7 presently has an average rating of "Reduce" and a consensus price target of $11.98.

Rapid7 Price Performance

The company has a debt-to-equity ratio of 1.50, a current ratio of 0.80 and a quick ratio of 0.80. The stock has a market capitalization of $841.56 million, a P/E ratio of 40.35 and a beta of 1.01. The stock's fifty day moving average is $11.57 and its 200-day moving average is $8.79.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate 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 the consensus estimate of $208.23 million. During the same quarter in the prior year, the company posted $0.58 EPS. The firm's revenue was down 1.5% on a year-over-year basis. 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 earnings per share for the current year.

Institutional Trading of Rapid7

Hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC lifted 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 worth $48,000 after buying an additional 1,000 shares during the last quarter. Versant Capital Management Inc grew its stake 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 worth $85,000 after acquiring an additional 1,238 shares during the last quarter. State of Wyoming increased its position in Rapid7 by 14.1% during the fourth quarter. State of Wyoming now owns 25,805 shares of the technology company's stock worth $392,000 after acquiring an additional 3,196 shares during the period. Parallel Advisors LLC raised its stake in Rapid7 by 108.8% during the 1st 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 raised its stake in Rapid7 by 511.3% during the 2nd quarter. Allworth Financial LP now owns 5,245 shares of the technology company's stock valued at $42,000 after purchasing an additional 4,387 shares during the last quarter. Institutional investors own 95.66% of the company's stock.

Rapid7 Company Profile

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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