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

Key Points

• Rapid7 currently carries a consensus analyst rating of "Reduce", with 23 analysts covering the stock; the breakdown includes 3 sells, 18 holds, and 2 buys. The average 12-month price target is about $9.39.
• Several firms have recently cut ratings or price targets on Rapid7, including William Blair and Truist Financial, reflecting cautious sentiment toward the cybersecurity company.
• Despite the negative consensus, Rapid7 reported better-than-expected quarterly earnings of $0.36 per share and revenue of $209.69 million, while the stock traded up 2.8% to $6.90. Institutional investors remain heavily involved, owning 95.66% of shares.

Shares of Rapid7, Inc. (NASDAQ:RPD - Get Free Report) have been given an average rating of "Reduce" by the twenty-three analysts that are presently covering the stock, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell recommendation, eighteen have assigned a hold recommendation and two have assigned a buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $9.3947.

RPD has been the topic of a number of research reports. William Blair lowered Rapid7 from an "outperform" rating to a "market perform" rating in a report on Tuesday, April 28th. Raymond James Financial set a $8.00 price target on Rapid7 in a report on Wednesday. Susquehanna set a $8.00 price target on Rapid7 in a report on Thursday, February 12th. Stephens lowered their price target on Rapid7 from $19.00 to $12.00 and set an "equal weight" rating on the stock in a report on Wednesday, February 11th. Finally, Truist Financial lowered their price target on Rapid7 from $8.00 to $6.00 and set a "hold" rating on the stock in a report on Friday, April 24th.

Hedge Funds Weigh In On Rapid7

A number of hedge funds and other institutional investors have recently made changes to their positions in RPD. Royal Bank of Canada grew its holdings 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 last quarter. AQR Capital Management LLC purchased a new stake in Rapid7 in the 1st quarter valued at approximately $424,000. Woodline Partners LP boosted its holdings in Rapid7 by 48.0% in the 1st quarter. Woodline Partners LP now owns 86,712 shares of the technology company's stock valued at $2,299,000 after purchasing an additional 28,115 shares in the last quarter. Prudential Financial Inc. boosted its holdings in Rapid7 by 8.8% in the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company's stock valued at $197,000 after purchasing an additional 690 shares in the last quarter. Finally, Invesco Ltd. boosted its holdings in Rapid7 by 27.2% in the 2nd quarter. Invesco Ltd. now owns 62,786 shares of the technology company's stock valued at $1,452,000 after purchasing an additional 13,418 shares in the last quarter. Hedge funds and other institutional investors own 95.66% of the company's stock.

Rapid7 Stock Up 2.8%

RPD opened at $6.90 on Friday. The business's 50-day simple moving average is $6.05 and its 200-day simple moving average is $11.16. The company has a debt-to-equity ratio of 1.69, a quick ratio of 1.28 and a current ratio of 0.78. Rapid7 has a one year low of $4.97 and a one year high of $27.10. The stock has a market capitalization of $461.13 million, a P/E ratio of 19.71 and a beta of 0.89.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.30 by $0.06. Rapid7 had a return on equity of 34.35% and a net margin of 2.61%.The firm had revenue of $209.69 million for the quarter, compared to analyst estimates of $207.94 million. During the same quarter last year, the company posted $0.49 earnings per share. The business's revenue was down .3% on a year-over-year basis. Rapid7 has set its FY 2026 guidance at 1.520-1.600 EPS and its Q2 2026 guidance at 0.330-0.360 EPS. Analysts anticipate that Rapid7 will post 0.55 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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