Rapid7 (NASDAQ:RPD) Shares Gap Down – Here’s Why

Rapid7, Inc. (NASDAQ:RPD)’s share price gapped down prior to trading on Wednesday . The stock had previously closed at $12.13, but opened at $11.49. Rapid7 shares last traded at $11.8850, with a volume of 160,657 shares changing hands.

Analyst Ratings Changes

Several analysts recently weighed in on the company. Stephens reissued a “positive” rating on shares of Rapid7 in a report on Tuesday, August 11th. William Blair cut Rapid7 from an “outperform” rating to a “market perform” rating in a research report on Tuesday, April 28th. Mizuho lifted their target price on Rapid7 from $8.00 to $11.00 and gave the stock a “neutral” rating in a report on Wednesday, July 15th. Robert W. Baird boosted their target price on shares of Rapid7 from $8.00 to $10.00 and gave the company a “neutral” rating in a research report on Tuesday, August 11th. Finally, Royal Bank Of Canada upped their price target on shares of Rapid7 from $11.00 to $12.00 and gave the company a “sector perform” rating in a research note on Tuesday, August 11th. One analyst has rated the stock with a Buy rating, eighteen have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, Rapid7 has a consensus rating of “Reduce” and a consensus target price of $11.98.

Rapid7 Price Performance

The firm has a market cap of $793.97 million, a P/E ratio of 38.03 and a beta of 0.97. The company has a debt-to-equity ratio of 1.50, a current ratio of 0.80 and a quick ratio of 0.80. The company’s 50-day moving average is $10.36 and its two-hundred day moving average is $7.98.

Rapid7 (NASDAQ:RPD) last released its earnings results on Monday, August 10th. The technology company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.35 by $0.09. The firm had revenue of $210.88 million for the quarter, compared to analyst estimates of $208.23 million. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. The business’s quarterly revenue was down 1.5% compared to the same quarter last year. During the same period last year, the firm earned $0.58 EPS. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. Sell-side analysts anticipate that Rapid7, Inc. will post 0.74 EPS for the current fiscal year.

Institutional Investors Weigh In On Rapid7

A number of hedge funds have recently made changes to their positions in the stock. Prudential Financial Inc. grew its stake in shares of Rapid7 by 8.8% during the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock worth $197,000 after buying an additional 690 shares during the last quarter. GAMMA Investing LLC boosted its holdings 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 valued at $48,000 after acquiring an additional 1,000 shares in the last quarter. Versant Capital Management Inc grew its position in Rapid7 by 13.4% during the 2nd quarter. Versant Capital Management Inc now owns 10,469 shares of the technology company’s stock worth $85,000 after acquiring an additional 1,238 shares during the last quarter. Parallel Advisors LLC grew its position 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 acquiring an additional 1,364 shares during the last quarter. Finally, Headlands Technologies LLC acquired a new position in Rapid7 in the 2nd quarter worth about $44,000. 95.66% of the stock is currently owned by institutional investors and hedge funds.

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.