Rapid7 (NASDAQ:RPD) Stock Falls 4.6% - Here's What Happened

Key Points

• Rapid7 shares fell 4.6% to about $12.25 in low-volume trading, with volume down 97% from the average session.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with 17 Hold and five Sell ratings and an average price target of $11.98.
• Rapid7 exceeded quarterly expectations with $0.44 in 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) fell 4.6% during trading on Friday. The stock traded as low as $12.45 and last traded at $12.2540. Approximately 71,276 shares were traded during trading, a decline of 97% from the average session volume of 2,127,104 shares. The stock had previously closed at $12.85.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on RPD shares. Stifel Nicolaus upped their target price on Rapid7 from $7.00 to $13.00 and gave the company a "hold" rating in a research note on Tuesday, August 11th. Truist Financial upped their target price on shares of Rapid7 from $6.00 to $10.00 and gave the stock a "hold" rating in a research note on Tuesday, July 21st. Stephens reaffirmed a "positive" rating on shares of Rapid7 in a research note on Tuesday, August 11th. Canaccord Genuity Group upped their target price on Rapid7 from $7.00 to $14.00 and gave the stock a "hold" rating in a report on Tuesday, August 11th. Finally, DA Davidson upped their price objective on shares of Rapid7 from $5.25 to $9.00 and gave the stock an "underperform" rating in a research note on Tuesday, August 11th. One 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. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $11.98.

Rapid7 Stock Down 5.6%

The business's 50 day moving average price is $11.56 and its 200 day moving average price is $8.68. The firm has a market cap of $817.97 million, a PE ratio of 39.21 and a beta of 1.01. The company has a debt-to-equity ratio of 1.50, a current ratio of 0.80 and a quick ratio of 0.80.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its 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 net margin of 2.35% and a return on equity of 27.89%. The company had revenue of $210.88 million for the quarter, compared to the consensus estimate of $208.23 million. During the same period in the previous year, the firm earned $0.58 earnings per share. Rapid7'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. On average, equities research analysts expect that Rapid7, Inc. will post 0.74 earnings per share for the current year.

Institutional Trading of Rapid7

A number of hedge funds have recently bought and sold shares of RPD. Sequoia Financial Advisors LLC acquired a new position in Rapid7 in the 2nd quarter worth about $211,000. WINTON GROUP Ltd increased its holdings in Rapid7 by 124.1% in the second quarter. WINTON GROUP Ltd now owns 26,600 shares of the technology company's stock worth $215,000 after buying an additional 14,732 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in Rapid7 in the second quarter worth approximately $38,000. Allworth Financial LP increased its stake in shares of Rapid7 by 511.3% during the 2nd quarter. Allworth Financial LP now owns 5,245 shares of the technology company's stock worth $42,000 after purchasing an additional 4,387 shares during the last quarter. Finally, Corient Private Wealth LP acquired a new stake in shares of Rapid7 in the 2nd quarter valued at $429,000. 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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