Rapid7 (NASDAQ:RPD) Stock Price Down 5.6% - Here's What Happened

Key Points

• Rapid7 shares fell 5.6% to about $12.71 in Tuesday trading, with volume down 94% from the average session.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating, with 18 Holds, four Sells and one Buy, alongside a consensus price target of $11.98.
• Rapid7’s latest quarterly results beat expectations, reporting $0.44 in adjusted EPS versus the $0.35 consensus and $210.88 million in revenue, though revenue declined 1.5% year over year.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report)'s share price fell 5.6% on Tuesday . The company traded as low as $12.72 and last traded at $12.7120. Approximately 128,581 shares traded hands during mid-day trading, a decline of 94% from the average session volume of 2,122,356 shares. The stock had previously closed at $13.46.

Analysts Set New Price Targets

RPD has been the subject of several analyst reports. Canaccord Genuity Group increased 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. Weiss Ratings reissued a "sell (d)" rating on shares of Rapid7 in a report on Wednesday, June 24th. Robert W. Baird lifted their price objective on shares of Rapid7 from $8.00 to $10.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. Truist Financial raised their price objective on Rapid7 from $6.00 to $10.00 and gave the company a "hold" rating in a research note on Tuesday, July 21st. Finally, JPMorgan Chase & Co. increased 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. One investment analyst has rated the stock with a Buy rating, eighteen have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $11.98.

Rapid7 Price Performance

The firm's fifty day moving average price is $10.87 and its two-hundred day moving average price is $8.05. The stock has a market capitalization of $822.21 million, a PE ratio of 39.44 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.

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 analysts' consensus estimates of $0.35 by $0.09. The firm 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 company's revenue for the quarter was down 1.5% on a year-over-year basis. During the same period last year, the business posted $0.58 EPS. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. On average, equities analysts predict that Rapid7, Inc. will post 0.74 earnings per share for the current year.

Institutional Trading of Rapid7

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Prudential Financial Inc. raised its stake in shares of Rapid7 by 8.8% in the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company's stock worth $197,000 after buying an additional 690 shares during the period. GAMMA Investing LLC grew its stake in shares of Rapid7 by 20.6% during the 2nd quarter. GAMMA Investing LLC now owns 5,866 shares of the technology company's stock valued at $48,000 after acquiring an additional 1,000 shares during the period. Versant Capital Management Inc increased its holdings in Rapid7 by 13.4% in the 2nd 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 in the last quarter. Parallel Advisors LLC increased its holdings in Rapid7 by 81.6% in the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company's stock worth $46,000 after acquiring an additional 1,364 shares in the last quarter. Finally, Headlands Technologies LLC bought a new stake in Rapid7 during the 2nd quarter worth approximately $44,000. Hedge funds and other institutional investors own 95.66% of the company's stock.

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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