Rapid7 (NASDAQ:RPD) Trading Down 6.6% – Here’s Why

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

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on RPD shares. DA Davidson increased their target price on Rapid7 from $5.25 to $6.50 and gave the company an “underperform” rating in a research report on Tuesday, June 2nd. Truist Financial boosted their price target on shares of Rapid7 from $6.00 to $10.00 and gave the stock a “hold” rating in a report on Tuesday. Piper Sandler reduced their price objective on shares of Rapid7 from $10.00 to $8.00 and set a “neutral” rating for the company in a research report on Wednesday, May 6th. JPMorgan Chase & Co. decreased their price objective on shares of Rapid7 from $11.00 to $7.00 and set a “neutral” rating on the stock in a report on Monday, May 11th. Finally, Wall Street Zen downgraded shares of Rapid7 from a “buy” rating to a “hold” rating in a report on Tuesday, April 14th. One research analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and an average target price of $9.03.

Rapid7 Stock Performance

The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 1.69. The firm has a 50-day moving average price of $8.54 and a two-hundred day moving average price of $8.24. The firm has a market cap of $638.89 million, a PE ratio of 27.32 and a beta of 1.01.

Rapid7 (NASDAQ:RPD) last issued its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.30 by $0.06. Rapid7 had a return on equity of 34.35% and a net margin of 2.61%.The firm had revenue of $209.69 million during the quarter, compared to analysts’ expectations of $207.94 million. During the same period in the previous year, the business earned $0.49 earnings per share. The firm’s revenue for the quarter 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. Research analysts forecast that Rapid7, Inc. will post 0.63 EPS for the current fiscal year.

Institutional Investors Weigh In On Rapid7

A number of hedge funds have recently modified their holdings of the business. Headlands Technologies LLC purchased a new position in shares of Rapid7 in the second quarter worth about $44,000. Sound Income Strategies LLC purchased a new stake in Rapid7 during the 4th quarter valued at about $40,000. Parallel Advisors LLC raised its holdings 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 acquiring an additional 1,364 shares during the last quarter. KBC Group NV raised its holdings in Rapid7 by 124.0% in the 4th quarter. KBC Group NV now owns 3,310 shares of the technology company’s stock valued at $50,000 after acquiring an additional 1,832 shares during the last quarter. Finally, Los Angeles Capital Management LLC acquired a new stake in Rapid7 in the 4th quarter valued at about $71,000. 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.