Short Interest in Rapid7, Inc. (NASDAQ:RPD) Grows By 21.8%

Rapid7, Inc. (NASDAQ:RPD) was the target of a large growth in short interest during the month of February. As of February 13th, there was short interest totaling 5,385,598 shares, a growth of 21.8% from the January 29th total of 4,422,045 shares. Based on an average daily volume of 2,307,334 shares, the short-interest ratio is currently 2.3 days. Currently, 8.4% of the company’s shares are sold short. Currently, 8.4% of the company’s shares are sold short. Based on an average daily volume of 2,307,334 shares, the short-interest ratio is currently 2.3 days.

Hedge Funds Weigh In On Rapid7

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Invesco Ltd. increased its holdings in Rapid7 by 41.3% during the 4th quarter. Invesco Ltd. now owns 116,097 shares of the technology company’s stock worth $1,765,000 after purchasing an additional 33,952 shares in the last quarter. State of Tennessee Department of Treasury acquired a new position in shares of Rapid7 during the fourth quarter worth about $217,000. Mackenzie Financial Corp grew its holdings in shares of Rapid7 by 11.4% during the fourth quarter. Mackenzie Financial Corp now owns 75,679 shares of the technology company’s stock worth $1,180,000 after buying an additional 7,742 shares in the last quarter. Fuller & Thaler Asset Management Inc. bought a new position in shares of Rapid7 during the fourth quarter worth about $276,000. Finally, VARCOV Co. acquired a new stake in Rapid7 in the 4th quarter valued at approximately $1,118,000. 95.66% of the stock is owned by institutional investors and hedge funds.

Rapid7 Price Performance

Shares of RPD opened at $7.04 on Friday. The company has a debt-to-equity ratio of 5.77, a quick ratio of 1.28 and a current ratio of 1.28. The stock has a 50 day simple moving average of $10.90 and a 200 day simple moving average of $15.36. Rapid7 has a 52-week low of $5.92 and a 52-week high of $30.95. The firm has a market capitalization of $463.87 million, a PE ratio of 19.56 and a beta of 0.88.

Rapid7 (NASDAQ:RPD) last announced its earnings results on Tuesday, February 10th. The technology company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.40 by $0.04. Rapid7 had a net margin of 2.72% and a return on equity of 47.33%. The firm had revenue of $217.39 million for the quarter, compared to the consensus estimate of $215.17 million. During the same period last year, the company posted $0.48 EPS. The business’s quarterly revenue was up .5% on a year-over-year basis. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS. Sell-side analysts predict that Rapid7 will post 0.35 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts have weighed in on RPD shares. Zacks Research lowered Rapid7 from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 27th. Morgan Stanley set a $10.00 price target on Rapid7 in a research note on Thursday, February 12th. Scotiabank cut their price target on shares of Rapid7 from $18.00 to $9.00 and set a “sector perform” rating on the stock in a research report on Wednesday, February 11th. Truist Financial reduced their price objective on shares of Rapid7 from $14.00 to $8.00 and set a “hold” rating on the stock in a research note on Wednesday, February 11th. Finally, Mizuho lowered their target price on shares of Rapid7 from $16.00 to $12.00 and set a “neutral” rating for the company in a research note on Wednesday, February 11th. Two investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, Rapid7 has an average rating of “Reduce” and an average target price of $12.53.

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.