Rapid7 (NASDAQ:RPD) Trading 11.3% Higher - Should You Buy?

Key Points

• Rapid7 shares rose 11.3% to approximately $11.47, although trading volume was 86% below the average session volume.
• 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 EPS and revenue expectations, reporting $0.44 EPS versus a $0.35 estimate and $210.88 million in revenue, though revenue declined 1.5% year over year.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report)'s stock price rose 11.3% during trading on Monday . The company traded as high as $11.40 and last traded at $11.4730. 287,134 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 2,113,224 shares. The stock had previously closed at $10.31.

Analyst Upgrades and Downgrades

RPD has been the topic of a number of research reports. JPMorgan Chase & Co. lifted their price objective on Rapid7 from $7.00 to $12.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 11th. UBS Group boosted their target price on shares of Rapid7 from $7.00 to $12.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. Robert W. Baird raised their price objective on Rapid7 from $8.00 to $10.00 and gave the company a "neutral" rating in a research note on Tuesday, August 11th. Morgan Stanley cut shares of Rapid7 from an "equal weight" rating to an "underweight" rating and set a $9.00 price target for the company. in a research note on Tuesday, July 21st. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $15.00 target price on shares of Rapid7 in a research note on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating, eighteen have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, Rapid7 currently has a consensus rating of "Reduce" and a consensus target price of $11.98.

Rapid7 Stock Up 19.1%

The company's 50 day moving average is $11.40 and its 200 day moving average is $8.30. The company has a market cap of $827.34 million, a PE ratio of 39.46 and a beta of 1.01. 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 released its quarterly earnings data on Monday, August 10th. The technology company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.35 by $0.09. The company 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%.Rapid7's quarterly revenue 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. As a group, analysts predict that Rapid7, Inc. will post 0.74 earnings per share for the current fiscal year.

Institutional Trading of Rapid7

Institutional investors and hedge funds have recently made changes to their positions in the company. Prudential Financial Inc. grew its holdings in Rapid7 by 8.8% during the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company's stock worth $197,000 after acquiring an additional 690 shares in the last quarter. GAMMA Investing LLC grew 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 purchasing an additional 1,000 shares during the last quarter. Versant Capital Management Inc increased its position in Rapid7 by 13.4% during the second quarter. Versant Capital Management Inc now owns 10,469 shares of the technology company's stock worth $85,000 after buying an additional 1,238 shares during the period. Parallel Advisors LLC increased its holdings in shares of Rapid7 by 81.6% in the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company's stock valued at $46,000 after acquiring an additional 1,364 shares during the period. Finally, Headlands Technologies LLC purchased a new stake in Rapid7 in the 2nd quarter valued at $44,000. 95.66% of the stock is currently owned by institutional investors.

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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