Rapid7, Inc. (NASDAQ:RPD) Sees Significant Increase in Short Interest

Key Points

• Short interest jumped 28.9% to 6,470,554 shares as of April 15, equal to 10.1% of the company’s shares short and a days-to-cover ratio of about 2.9.
• Institutional ownership is very high at 95.66%, with major investors like JANA Partners and Vanguard increasing positions during the last reported quarter.
• Analyst sentiment is weak: the MarketBeat consensus is "Reduce" with a $12.21 price target after multiple downward revisions, while the stock trades around $5.85 with a market cap near $390.6M.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) saw a large growth in short interest in April. As of April 15th, there was short interest totaling 6,470,554 shares, a growth of 28.9% from the March 31st total of 5,018,344 shares. Currently, 10.1% of the shares of the company are short sold. Based on an average trading volume of 2,246,027 shares, the days-to-cover ratio is presently 2.9 days.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. JANA Partners Management LP lifted its position in Rapid7 by 13.5% in the third quarter. JANA Partners Management LP now owns 6,502,108 shares of the technology company's stock worth $121,915,000 after buying an additional 772,194 shares during the last quarter. LSV Asset Management bought a new stake in Rapid7 in the third quarter worth $14,719,000. Vanguard Group Inc. lifted its position in Rapid7 by 7.4% in the third quarter. Vanguard Group Inc. now owns 8,620,265 shares of the technology company's stock worth $161,630,000 after buying an additional 595,916 shares during the last quarter. Teacher Retirement System of Texas lifted its position in Rapid7 by 91.1% in the third quarter. Teacher Retirement System of Texas now owns 105,064 shares of the technology company's stock worth $1,970,000 after buying an additional 50,083 shares during the last quarter. Finally, Campbell & CO Investment Adviser LLC lifted its position in Rapid7 by 407.7% in the third quarter. Campbell & CO Investment Adviser LLC now owns 69,883 shares of the technology company's stock worth $1,310,000 after buying an additional 56,119 shares during the last quarter. 95.66% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on RPD shares. Needham & Company LLC restated a "hold" rating on shares of Rapid7 in a research note on Wednesday, February 11th. Barclays dropped their price target on Rapid7 from $15.00 to $8.00 and set an "underweight" rating for the company in a research note on Thursday, February 12th. Scotiabank dropped their price target on Rapid7 from $18.00 to $9.00 and set a "sector perform" rating for the company in a research note on Wednesday, February 11th. Royal Bank Of Canada dropped their price target on Rapid7 from $16.00 to $12.00 and set a "sector perform" rating for the company in a research note on Wednesday, February 11th. Finally, Susquehanna set a $8.00 price target on Rapid7 in a research note on Thursday, February 12th. Two investment analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $12.21.

Rapid7 Price Performance

Shares of NASDAQ RPD traded up $0.03 during midday trading on Wednesday, reaching $5.85. 1,754,695 shares of the stock traded hands, compared to its average volume of 1,929,889. The company has a debt-to-equity ratio of 5.77, a current ratio of 1.28 and a quick ratio of 1.28. The stock has a market capitalization of $390.62 million, a PE ratio of 16.25 and a beta of 0.90. Rapid7 has a one year low of $4.97 and a one year high of $27.10. The company's 50 day moving average is $6.07 and its 200 day moving average is $11.58.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its earnings results on Tuesday, February 10th. The technology company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.40 by $0.04. The firm had revenue of $217.39 million during the quarter, compared to the consensus estimate of $215.17 million. Rapid7 had a return on equity of 47.33% and a net margin of 2.72%.The company's quarterly revenue was up .5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.48 EPS. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS. On average, equities research analysts anticipate that Rapid7 will post 0.55 earnings per share for the current year.

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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