Rapid7 (NASDAQ:RPD) Shares Down 3.4% - What's Next?

Key Points

• Rapid7 shares fell 3.4% to $11.45 in thin trading, with volume down 95% from the average daily level.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a consensus price target of $11.98, despite several firms raising their targets.
• Rapid7 beat quarterly expectations with adjusted EPS of $0.44 versus the $0.35 estimate and revenue of $210.88 million, though revenue declined 1.5% year over year. Institutional investors own approximately 95.66% of the company.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report)'s share price was down 3.4% during mid-day trading on Friday . The stock traded as low as $11.35 and last traded at $11.45. 116,892 shares were traded during trading, a decline of 95% from the average daily volume of 2,148,893 shares. The stock had previously closed at $11.85.

Wall Street Analysts Forecast Growth

RPD has been the subject of several analyst reports. Mizuho increased their price target on shares of Rapid7 from $8.00 to $11.00 and gave the company a "neutral" rating in a research note on Wednesday, July 15th. Citigroup reiterated a "neutral" rating on shares of Rapid7 in a report on Wednesday, August 12th. Stifel Nicolaus raised their target price on Rapid7 from $7.00 to $13.00 and gave the stock a "hold" rating in a research note on Tuesday, August 11th. Wall Street Zen upgraded Rapid7 from a "hold" rating to a "buy" rating in a research report on Saturday, August 15th. Finally, Canaccord Genuity Group upped their price target on Rapid7 from $7.00 to $14.00 and gave the company a "hold" rating in a research note on Tuesday, August 11th. One equities 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 stock. According to MarketBeat, the stock has an average rating of "Reduce" and an average price target of $11.98.

Rapid7 Stock Up 0.2%

The company has a market capitalization of $800.04 million, a PE ratio of 38.29 and a beta of 0.97. 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 business has a fifty day moving average of $10.06 and a 200 day moving average of $7.96.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.35 by $0.09. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. The company had revenue of $210.88 million for the quarter, compared to analyst estimates of $208.23 million. During the same period in the prior year, the firm earned $0.58 earnings per share. The business's revenue for the quarter was down 1.5% compared to the same quarter last year. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. Equities research analysts anticipate that Rapid7, Inc. will post 0.65 EPS for the current year.

Hedge Funds Weigh In On Rapid7

Institutional investors have recently modified their holdings of the business. Parallel Advisors LLC grew its stake in Rapid7 by 108.8% during the 1st quarter. Parallel Advisors LLC now owns 6,340 shares of the technology company's stock worth $35,000 after purchasing an additional 3,304 shares in the last quarter. Allworth Financial LP purchased a new position in shares of Rapid7 in the 2nd quarter valued at about $42,000. Headlands Technologies LLC acquired a new position in shares of Rapid7 during the second quarter worth about $44,000. GAMMA Investing LLC increased its stake 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 buying an additional 1,000 shares during the period. Finally, KBC Group NV raised its holdings in Rapid7 by 124.0% in the fourth quarter. KBC Group NV now owns 3,310 shares of the technology company's stock valued at $50,000 after acquiring an additional 1,832 shares in the last quarter. Institutional investors and hedge funds own 95.66% of the company's stock.

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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