Rapid7 (NASDAQ:RPD) Shares Gap Up – Still a Buy?

Rapid7, Inc. (NASDAQ:RPD) shares gapped up before the market opened on Thursday . The stock had previously closed at $11.79, but opened at $12.90. Rapid7 shares last traded at $13.35, with a volume of 338,440 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Scotiabank lifted their price objective on Rapid7 from $7.00 to $10.15 and gave the stock a “sector perform” rating in a research report on Tuesday, August 11th. Morgan Stanley downgraded Rapid7 from an “equal weight” rating to an “underweight” rating and set a $9.00 target price for the company. in a report on Tuesday, July 21st. Susquehanna raised their price target on Rapid7 from $7.00 to $15.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 12th. Raymond James Financial reiterated an “outperform” rating and issued a $15.00 price target on shares of Rapid7 in a report on Tuesday, August 11th. Finally, Robert W. Baird boosted their price objective 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. One research 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. Based on data from MarketBeat.com, Rapid7 currently has an average rating of “Reduce” and a consensus price target of $11.98.

Rapid7 Price Performance

The business has a fifty day simple moving average of $10.73 and a two-hundred day simple moving average of $8.05. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.50. The stock has a market cap of $895.75 million, a PE ratio of 42.87 and a beta of 0.97.

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

Institutional Trading of Rapid7

A number of hedge funds have recently modified their holdings of the business. 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 worth $35,000 after buying an additional 3,304 shares during the period. Allworth Financial LP purchased a new position in Rapid7 during the 2nd quarter valued at about $42,000. Headlands Technologies LLC purchased a new position in Rapid7 during the 2nd quarter valued at about $44,000. GAMMA Investing LLC boosted its stake in Rapid7 by 20.6% during the second quarter. GAMMA Investing LLC now owns 5,866 shares of the technology company’s stock worth $48,000 after acquiring an additional 1,000 shares in the last quarter. Finally, Los Angeles Capital Management LLC bought a new stake in Rapid7 during the fourth quarter worth about $71,000. Institutional investors own 95.66% of the company’s stock.

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.