Rapid7 (NASDAQ:RPD) Shares Gap Down – Time to Sell?

Shares of Rapid7, Inc. (NASDAQ:RPD) gapped down prior to trading on Tuesday . The stock had previously closed at $11.95, but opened at $11.16. Rapid7 shares last traded at $10.7460, with a volume of 424,913 shares changing hands.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. William Blair downgraded shares of Rapid7 from an “outperform” rating to a “market perform” rating in a report on Tuesday, April 28th. Royal Bank Of Canada restated a “sector perform” rating and set a $11.00 price objective on shares of Rapid7 in a research report on Thursday, July 16th. Robert W. Baird set a $8.00 target price on Rapid7 in a research report on Wednesday, May 6th. Wall Street Zen downgraded Rapid7 from a “buy” rating to a “hold” rating in a research note on Tuesday, April 14th. Finally, Piper Sandler dropped their price objective on shares of Rapid7 from $10.00 to $8.00 and set a “neutral” rating for the company in a research note on Wednesday, May 6th. One analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $9.03.

Rapid7 Stock Down 6.6%

The stock has a market cap of $662.29 million, a price-to-earnings ratio of 28.32 and a beta of 1.01. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 1.69. The stock’s 50-day moving average price is $8.48 and its 200-day moving average price is $8.27.

Rapid7 (NASDAQ:RPD) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.30 by $0.06. Rapid7 had a net margin of 2.61% and a return on equity of 34.35%. The company had revenue of $209.69 million during the quarter, compared to analysts’ expectations of $207.94 million. During the same period in the prior year, the company posted $0.49 earnings per share. Rapid7’s revenue for the quarter was down .3% compared to the same quarter last year. Rapid7 has set its FY 2026 guidance at 1.520-1.600 EPS and its Q2 2026 guidance at 0.330-0.360 EPS. On average, sell-side analysts expect that Rapid7, Inc. will post 0.63 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Hsbc Holdings PLC lifted its stake in Rapid7 by 274.1% in the fourth quarter. Hsbc Holdings PLC now owns 159,688 shares of the technology company’s stock valued at $2,446,000 after buying an additional 117,000 shares during the period. Y Intercept Hong Kong Ltd acquired a new stake in shares of Rapid7 during the 1st quarter worth approximately $1,048,000. SG Americas Securities LLC lifted its position in shares of Rapid7 by 32.4% during the 1st quarter. SG Americas Securities LLC now owns 817,649 shares of the technology company’s stock valued at $4,505,000 after acquiring an additional 200,033 shares during the period. Circumference Group LLC bought a new position in Rapid7 during the fourth quarter worth $3,800,000. Finally, Vanguard Group Inc. grew its holdings in Rapid7 by 7.6% in the fourth quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company’s stock worth $140,961,000 after purchasing an additional 653,498 shares during the period. 95.66% of the stock is owned by institutional investors and hedge funds.

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.