Rapid7 (NASDAQ:RPD) Trading Down 6.3% - Here's What Happened

Key Points

• Rapid7 shares fell 6.3% to about $10.30 during Tuesday trading, with volume down 92% from the average daily level.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and a $11.98 target price, despite some firms raising targets or maintaining positive ratings.
• Rapid7’s latest quarterly results beat expectations, reporting $0.44 EPS versus a $0.35 estimate and $210.88 million in revenue, although revenue declined 1.5% year over year.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) fell 6.3% during trading on Tuesday . The company traded as low as $10.23 and last traded at $10.3020. Approximately 180,290 shares changed hands during mid-day trading, a decline of 92% from the average daily volume of 2,125,784 shares. The stock had previously closed at $11.00.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on RPD shares. Raymond James Financial reaffirmed an "outperform" rating and issued a $15.00 price target on shares of Rapid7 in a report on Tuesday, August 11th. UBS Group raised 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. Robert W. Baird lifted their target price on Rapid7 from $8.00 to $10.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. Stephens reaffirmed a "positive" rating on shares of Rapid7 in a research report on Tuesday, August 11th. Finally, Citigroup reaffirmed a "neutral" rating on shares of Rapid7 in a report on Wednesday, August 12th. One research analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Rapid7 currently has a consensus rating of "Reduce" and a consensus target price of $11.98.

Rapid7 Stock Performance

The firm's 50-day simple moving average is $11.28 and its two-hundred day simple moving average is $8.19. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.50. The stock has a market capitalization of $711.41 million, a PE ratio of 34.02 and a beta of 1.01.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 analyst estimates of $208.23 million. During the same quarter in the prior year, the company earned $0.58 earnings per share. The company's revenue for the quarter 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 research analysts expect that Rapid7, Inc. will post 0.74 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Rapid7

A number of large investors have recently made changes to their positions in the business. Quantinno Capital Management LP increased its stake in Rapid7 by 776.1% in the 1st quarter. Quantinno Capital Management LP now owns 260,359 shares of the technology company's stock valued at $1,435,000 after buying an additional 230,641 shares during the period. Renaissance Technologies LLC boosted its stake in shares of Rapid7 by 535.0% during the 1st quarter. Renaissance Technologies LLC now owns 149,196 shares of the technology company's stock valued at $822,000 after buying an additional 125,700 shares during the period. Pacer Advisors Inc. boosted its stake in shares of Rapid7 by 24.3% during the 1st quarter. Pacer Advisors Inc. now owns 469,912 shares of the technology company's stock valued at $2,589,000 after buying an additional 91,905 shares during the period. Y Intercept Hong Kong Ltd purchased a new position in shares of Rapid7 during the 1st quarter valued at $1,048,000. Finally, Assenagon Asset Management S.A. increased its stake in shares of Rapid7 by 113.7% in the second quarter. Assenagon Asset Management S.A. now owns 163,844 shares of the technology company's stock worth $1,327,000 after acquiring an additional 87,178 shares during the last quarter. Institutional investors and hedge funds own 95.66% of the company's stock.

About Rapid7

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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