Rapid7 (NASDAQ:RPD) Stock Falls 7% – Here’s Why

Rapid7, Inc. (NASDAQ:RPD) shares dropped 7% during mid-day trading on Thursday. The stock traded as low as $16.50 and last traded at $16.4490. 836,662 shares were traded during mid-day trading, a decline of 60% from the average session volume of 2,098,758 shares. The stock had previously closed at $17.68.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Stifel Nicolaus raised their price objective on shares of Rapid7 from $7.00 to $13.00 and gave the company a “hold” rating in a research report on Tuesday, August 11th. DA Davidson boosted their target price on Rapid7 from $5.25 to $9.00 and gave the stock an “underperform” rating in a research report on Tuesday, August 11th. Raymond James Financial reissued an “outperform” rating and set a $15.00 target price on shares of Rapid7 in a research note on Tuesday, August 11th. Susquehanna raised their price target on Rapid7 from $7.00 to $15.00 and gave the company a “neutral” rating in a report on Wednesday, August 12th. Finally, Scotiabank lifted their price target on Rapid7 from $7.00 to $10.15 and gave the company a “sector perform” rating in a research note on Tuesday, August 11th. One equities research analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, Rapid7 currently has a consensus rating of “Reduce” and a consensus price target of $12.09.

Rapid7 Stock Down 3.0%

The firm has a fifty day moving average price of $12.89 and a 200-day moving average price of $9.53. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.50. The firm has a market cap of $1.12 billion, a price-to-earnings ratio of 53.42 and a beta of 1.02.

Rapid7 (NASDAQ:RPD) last issued its quarterly earnings data on Monday, August 10th. The technology company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.09. Rapid7 had a return on equity of 27.89% and a net margin of 2.35%. The business had revenue of $210.88 million for the quarter, compared to analyst estimates of $208.23 million. During the same quarter in the prior year, the firm posted $0.58 EPS. The firm’s revenue for the quarter was down 1.5% on a year-over-year basis. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. As a group, sell-side analysts forecast that Rapid7, Inc. will post 0.76 EPS for the current year.

Institutional Investors Weigh In On Rapid7

Large investors have recently bought and sold shares of the company. Parallel Advisors LLC grew its position in shares of Rapid7 by 108.8% in the 1st quarter. Parallel Advisors LLC now owns 6,340 shares of the technology company’s stock valued at $35,000 after purchasing an additional 3,304 shares during the period. Integrated Wealth Concepts LLC acquired a new stake in Rapid7 during the 2nd quarter worth approximately $38,000. Allworth Financial LP bought a new position in Rapid7 in the second quarter valued at approximately $42,000. GAMMA Investing LLC lifted its stake in Rapid7 by 20.6% in the second quarter. GAMMA Investing LLC now owns 5,866 shares of the technology company’s stock valued at $48,000 after buying an additional 1,000 shares in the last quarter. Finally, Pinnacle Wealth Planning Services Inc. boosted its holdings in shares of Rapid7 by 34.5% in the third quarter. Pinnacle Wealth Planning Services Inc. now owns 5,752 shares of the technology company’s stock valued at $70,000 after buying an additional 1,475 shares during the period. Institutional investors own 95.66% of the company’s stock.

Rapid7 Company Profile

Rapid7, Inc (NASDAQ:RPD) is a cybersecurity company that provides technology and services to help organizations identify, assess and manage security risk across their IT environments. Its offerings are designed to support security operations, vulnerability management, cloud security, application security and incident response.

The company’s product portfolio includes the Insight platform and solutions such as InsightVM for vulnerability risk management, InsightIDR for security detection and response, InsightCloudSec for cloud security and compliance, and InsightAppSec for application security testing.