Rapid7 (NASDAQ:RPD) Shares Up 6.4% - What's Next?

Key Points

• Rapid7 shares rose 6.4% in Monday trading, reaching as high as $11.87 after closing at $11.17, though volume was below average.
• Analyst sentiment remains cautious: Morgan Stanley downgraded the stock to neutral, several firms cut price targets, and MarketBeat reports a consensus rating of “Reduce” with an average target of $8.71.
• The company’s latest earnings beat expectations, posting EPS of $0.36 versus $0.30 expected and revenue of $209.69 million, while guiding FY2026 EPS to 1.52–1.60.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) traded up 6.4% during mid-day trading on Monday . The company traded as high as $11.87 and last traded at $11.8820. Approximately 1,340,014 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 2,083,911 shares. The stock had previously closed at $11.17.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on RPD shares. Morgan Stanley upgraded shares of Rapid7 from an "outperform" rating to a "neutral" rating in a research report on Tuesday, June 2nd. Piper Sandler dropped their target price on shares of Rapid7 from $10.00 to $8.00 and set a "neutral" rating on the stock in a report on Wednesday, May 6th. William Blair cut shares of Rapid7 from an "outperform" rating to a "market perform" rating in a research report on Tuesday, April 28th. Robert W. Baird set a $8.00 price target on Rapid7 in a report on Wednesday, May 6th. Finally, 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 report on Wednesday, May 6th. One research analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, Rapid7 has a consensus rating of "Reduce" and a consensus price target of $8.71.

Rapid7 Trading Up 6.8%

The firm's 50-day moving average price is $7.63 and its 200 day moving average price is $8.48. The company has a market cap of $797.01 million, a price-to-earnings ratio of 34.13 and a beta of 1.01. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 1.69.

Rapid7 (NASDAQ:RPD - Get Free Report) last released its earnings results on Tuesday, May 5th. The technology company reported $0.36 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.30 by $0.06. The company 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%. Rapid7's quarterly revenue was down .3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.49 EPS. 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 expect that Rapid7, Inc. will post 0.63 EPS for the current year.

Hedge Funds Weigh In On Rapid7

Institutional investors and hedge funds have recently made changes to their positions in the stock. Headlands Technologies LLC acquired a new stake in shares of Rapid7 in the 2nd quarter valued at about $44,000. Sound Income Strategies LLC acquired a new position in Rapid7 during the 4th quarter worth approximately $40,000. Parallel Advisors LLC raised its stake in Rapid7 by 81.6% during the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company's stock worth $46,000 after buying an additional 1,364 shares during the period. KBC Group NV boosted 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 worth $50,000 after acquiring an additional 1,832 shares in the last quarter. Finally, Los Angeles Capital Management LLC bought a new position in Rapid7 in the fourth quarter worth approximately $71,000. Institutional investors 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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