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

Rapid7, Inc. (NASDAQ:RPD) shares 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.

Analyst Ratings Changes

Several brokerages have recently commented on RPD. Barclays increased their price objective on Rapid7 from $6.50 to $12.00 and gave the company an “underweight” rating in a research report on Tuesday, August 11th. Robert W. Baird upped their target price on Rapid7 from $8.00 to $10.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 11th. Canaccord Genuity Group increased their price target on shares of Rapid7 from $7.00 to $14.00 and gave the company a “hold” rating in a research report on Tuesday, August 11th. Scotiabank lifted their price target on shares of Rapid7 from $7.00 to $10.15 and gave the stock a “sector perform” rating in a research note on Tuesday, August 11th. Finally, DA Davidson boosted their price objective on shares of Rapid7 from $5.25 to $9.00 and gave the stock an “underperform” rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, Rapid7 currently has a consensus rating of “Reduce” and a consensus price target of $11.98.

Rapid7 Stock Performance

The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.80 and a current ratio of 0.80. The business has a 50 day moving average price of $10.60 and a two-hundred day moving average price of $8.01. The company has a market cap of $909.90 million, a P/E ratio of 43.55 and a beta of 0.97.

Rapid7 (NASDAQ:RPD) last posted its quarterly 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 business had revenue of $210.88 million for 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%.Rapid7’s revenue for the quarter was down 1.5% compared to the same quarter last year. During the same period last year, the company earned $0.58 EPS. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. On average, sell-side analysts anticipate that Rapid7, Inc. will post 0.74 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada raised its holdings in Rapid7 by 26.8% during the 1st quarter. Royal Bank of Canada now owns 326,910 shares of the technology company’s stock valued at $8,667,000 after buying an additional 69,122 shares during the last quarter. AQR Capital Management LLC purchased a new position in shares of Rapid7 in the first quarter valued at about $424,000. Woodline Partners LP raised its stake in shares of Rapid7 by 48.0% during the first quarter. Woodline Partners LP now owns 86,712 shares of the technology company’s stock valued at $2,299,000 after acquiring an additional 28,115 shares during the last quarter. Prudential Financial Inc. boosted its holdings 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 purchasing an additional 690 shares during the period. Finally, Invesco Ltd. boosted its holdings in shares of Rapid7 by 27.2% during the second quarter. Invesco Ltd. now owns 62,786 shares of the technology company’s stock worth $1,452,000 after purchasing an additional 13,418 shares during the period. Institutional investors own 95.66% of the company’s stock.

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.