Rapid7 (NASDAQ:RPD) Stock Price Down 6.6% - Here's Why

Key Points

• Rapid7 shares fell 6.6% during Wednesday trading, dipping as low as $9.95 as volume came in well below average, signaling a weaker-than-normal session for the stock.
• Analyst sentiment remains cautious: several firms cut price targets, and the stock now carries a consensus “Reduce” rating with an average target price of $9.03.
• On the fundamentals side, Rapid7 recently beat quarterly EPS estimates and slightly topped revenue expectations, but revenue was still down year over year and investors remain focused on its guidance and profitability outlook.

Rapid7, Inc. (NASDAQ:RPD - Get Free Report) fell 6.6% during mid-day trading on Wednesday . The company traded as low as $9.95 and last traded at $9.9140. Approximately 723,747 shares changed hands during trading, a decline of 66% from the average daily volume of 2,117,922 shares. The stock had previously closed at $10.61.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. Piper Sandler dropped their price objective on Rapid7 from $10.00 to $8.00 and set a "neutral" rating on the stock in a report on Wednesday, May 6th. Truist Financial raised their price target on shares of Rapid7 from $6.00 to $10.00 and gave the stock a "hold" rating in a research report on Tuesday. Barclays dropped their price target on shares of Rapid7 from $8.00 to $6.50 and set an "underweight" rating for the company in a research note on Thursday, May 7th. Stifel Nicolaus cut their price target on shares of Rapid7 from $9.00 to $7.00 and set a "hold" rating on the stock in a report on Wednesday, May 6th. Finally, William Blair lowered shares of Rapid7 from an "outperform" rating to a "market perform" rating in a report on Tuesday, April 28th. One research analyst has rated the stock with a Buy rating, seventeen have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $9.03.

Rapid7 Trading Down 8.9%

The company has a market cap of $645.91 million, a P/E ratio of 27.68 and a beta of 1.01. The business has a fifty day simple moving average of $8.40 and a 200 day simple moving average of $8.31. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.78 and a current ratio of 0.78.

Rapid7 (NASDAQ:RPD - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.36 earnings per share for the quarter, beating 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 business had revenue of $209.69 million during the quarter, compared to the consensus estimate of $207.94 million. During the same period in the previous year, the business earned $0.49 EPS. The business's quarterly 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, Inc. will post 0.63 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Rapid7

A number of institutional investors have recently modified their holdings of the business. Prudential Financial Inc. grew its stake in shares of 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 during the period. GAMMA Investing LLC lifted its position in shares of Rapid7 by 20.6% during the 2nd 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. Versant Capital Management Inc boosted its stake in Rapid7 by 13.4% in the 2nd quarter. Versant Capital Management Inc now owns 10,469 shares of the technology company's stock valued at $85,000 after buying an additional 1,238 shares in the last quarter. Parallel Advisors LLC boosted its stake in Rapid7 by 81.6% in the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company's stock valued at $46,000 after buying an additional 1,364 shares in the last quarter. Finally, Y.D. More Investments Ltd grew its position in Rapid7 by 17.5% in the fourth quarter. Y.D. More Investments Ltd now owns 11,307 shares of the technology company's stock valued at $172,000 after acquiring an additional 1,682 shares during the period. Institutional investors own 95.66% of the company's stock.

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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