Rapid7 (NASDAQ:RPD) Shares Gap Down - Here's Why

Key Points

• Rapid7 shares gapped down ahead of trading, opening at $11.16 after closing at $11.95 and later trading around $10.75.
• Several analysts cut price targets and downgraded the stock, leaving Rapid7 with an average rating of “Reduce” and an average price target of $9.03.
• In its latest quarterly report, Rapid7 beat EPS and revenue estimates, but revenue was still slightly down year over year and the company’s current-year EPS outlook remains modest.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $11.95, but opened at $11.16. Rapid7 shares last traded at $10.7460, with a volume of 424,913 shares.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on RPD shares. Barclays cut their price target on Rapid7 from $8.00 to $6.50 and set an "underweight" rating on the stock in a report on Thursday, May 7th. JPMorgan Chase & Co. dropped their price objective on Rapid7 from $11.00 to $7.00 and set a "neutral" rating on the stock in a research report on Monday, May 11th. Stifel Nicolaus reduced their target price on shares of Rapid7 from $9.00 to $7.00 and set a "hold" rating for the company in a report on Wednesday, May 6th. Morgan Stanley cut shares of Rapid7 from an "equal weight" rating to an "underweight" rating and set a $9.00 price target on the stock. in a report on Tuesday. Finally, Scotiabank reduced their price objective on shares of Rapid7 from $9.00 to $7.00 and set a "sector perform" rating for the company in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, Rapid7 presently has an average rating of "Reduce" and an average price target of $9.03.

Rapid7 Stock Performance

The firm has a market cap of $705.93 million, a price-to-earnings ratio of 30.16 and a beta of 1.01. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.78 and a quick ratio of 0.78. The firm has a fifty day simple moving average of $8.32 and a two-hundred day simple moving average of $8.34.

Rapid7 (NASDAQ:RPD - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $0.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.06. The firm had revenue of $209.69 million for the quarter, compared to the consensus estimate of $207.94 million. Rapid7 had a net margin of 2.61% and a return on equity of 34.35%. The company's revenue for the quarter was down .3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $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. On average, analysts expect that Rapid7, Inc. will post 0.63 EPS for the current year.

Institutional Investors Weigh In On Rapid7

A number of large investors have recently made changes to their positions in RPD. Headlands Technologies LLC acquired a new stake in Rapid7 during the 2nd quarter worth about $44,000. Sound Income Strategies LLC acquired a new position in shares of Rapid7 in the fourth quarter valued at about $40,000. Parallel Advisors LLC raised its stake in shares of Rapid7 by 81.6% in the fourth quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company's stock worth $46,000 after purchasing an additional 1,364 shares during the last quarter. KBC Group NV raised its stake in shares of Rapid7 by 124.0% in the fourth quarter. KBC Group NV now owns 3,310 shares of the technology company's stock worth $50,000 after purchasing an additional 1,832 shares during the last quarter. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of Rapid7 during the fourth quarter worth about $71,000. 95.66% of the stock is owned by hedge funds and other institutional investors.

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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