Rapid7, Inc. (NASDAQ:RPD) Receives Average Rating of "Reduce" from Analysts

Key Points

• Rapid7 has an average analyst rating of "Reduce" from 22 covering firms, with 4 sell ratings, 17 hold ratings, and just 1 buy rating. The average 12-month price target is about $9.03.
• Recent analyst actions have been mostly cautious, including downgrades and price-target cuts from firms such as Wall Street Zen, Canaccord Genuity, Stifel Nicolaus, and Morgan Stanley. Truist Financial was a notable exception, raising its price target to $10 while keeping a hold rating.
• The stock fell 6.6% to open at $9.91, while the company reported quarterly EPS of $0.36, beating estimates, on revenue of $209.69 million. Institutional investors still own 95.66% of Rapid7 shares.

Shares of Rapid7, Inc. (NASDAQ:RPD - Get Free Report) have been assigned an average recommendation of "Reduce" from the twenty-two ratings firms that are presently covering the stock, MarketBeat Ratings reports. Four research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and one has given a buy rating to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $9.0263.

RPD has been the topic of several recent research reports. Wall Street Zen downgraded Rapid7 from a "buy" rating to a "hold" rating in a report on Tuesday, April 14th. Canaccord Genuity Group decreased their price target on Rapid7 from $10.00 to $7.00 and set a "hold" rating for the company in a research note on Wednesday, May 6th. Truist Financial raised their price objective on Rapid7 from $6.00 to $10.00 and gave the stock a "hold" rating in a research report on Tuesday. Stifel Nicolaus cut their price objective on Rapid7 from $9.00 to $7.00 and set a "hold" rating on the stock in a research note on Wednesday, May 6th. Finally, Morgan Stanley lowered Rapid7 from an "equal weight" rating to an "underweight" rating and set a $9.00 price objective on the stock. in a research note on Tuesday.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its position in shares of Rapid7 by 26.8% during the first quarter. Royal Bank of Canada now owns 326,910 shares of the technology company's stock worth $8,667,000 after buying an additional 69,122 shares during the period. AQR Capital Management LLC bought a new position in Rapid7 during the first quarter worth $424,000. Woodline Partners LP lifted its holdings in Rapid7 by 48.0% in the first quarter. Woodline Partners LP now owns 86,712 shares of the technology company's stock valued at $2,299,000 after buying an additional 28,115 shares during the period. Prudential Financial Inc. lifted its holdings in Rapid7 by 8.8% in the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company's stock valued at $197,000 after buying an additional 690 shares during the period. Finally, Invesco Ltd. boosted its position in Rapid7 by 27.2% during the second quarter. Invesco Ltd. now owns 62,786 shares of the technology company's stock valued at $1,452,000 after acquiring an additional 13,418 shares during the last quarter. Institutional investors own 95.66% of the company's stock.

Rapid7 Trading Down 6.6%

Shares of NASDAQ RPD opened at $9.91 on Thursday. The firm has a 50 day moving average price of $8.48 and a two-hundred day moving average price of $8.27. The stock has a market cap of $662.29 million, a P/E ratio of 28.32 and a beta of 1.01. Rapid7 has a 52-week low of $4.97 and a 52-week high of $23.26. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.78 and a current ratio of 0.78.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.06. Rapid7 had a net margin of 2.61% and a return on equity of 34.35%. The company had revenue of $209.69 million for the quarter, compared to analyst estimates of $207.94 million. Rapid7's revenue was down .3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.49 earnings per share. Rapid7 has set its FY 2026 guidance at 1.520-1.600 EPS and its Q2 2026 guidance at 0.330-0.360 EPS. As a group, equities analysts forecast that Rapid7 will post 0.63 EPS for the current year.

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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