Rapid7 (NASDAQ:RPD) Trading Up 9.1% – Should You Buy?

Rapid7, Inc. (NASDAQ:RPD) shares rose 9.1% during trading on Wednesday . The stock traded as high as $8.65 and last traded at $8.8350. 122,080 shares were traded during mid-day trading, a decline of 94% from the average daily volume of 1,980,313 shares. The stock had previously closed at $8.10.

Wall Street Analysts Forecast Growth

RPD has been the topic of several recent research reports. William Blair downgraded Rapid7 from an “outperform” rating to a “market perform” rating in a research note on Tuesday, April 28th. Morgan Stanley upgraded shares of Rapid7 from an “outperform” rating to a “neutral” rating in a research note on Tuesday, June 2nd. JPMorgan Chase & Co. reduced their price objective on Rapid7 from $11.00 to $7.00 and set a “neutral” rating on the stock in a research note on Monday, May 11th. Barclays decreased their target price on shares of Rapid7 from $8.00 to $6.50 and set an “underweight” rating on the stock in a research report on Thursday, May 7th. Finally, Robert W. Baird set a $8.00 price target on Rapid7 in a report on Wednesday, May 6th. One research analyst has rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $8.71.

Rapid7 Price Performance

The firm has a 50-day simple moving average of $7.05 and a 200-day simple moving average of $8.68. The firm has a market cap of $620.85 million, a P/E ratio of 26.54 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.

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

Institutional Investors Weigh In On Rapid7

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Prudential Financial Inc. raised its position in Rapid7 by 8.8% in the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock valued at $197,000 after purchasing an additional 690 shares during the period. CI Investments Inc. boosted its position in shares of Rapid7 by 48.4% during the third quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock worth $43,000 after buying an additional 744 shares during the period. Versant Capital Management Inc grew its stake in shares of Rapid7 by 13.4% in the second quarter. Versant Capital Management Inc now owns 10,469 shares of the technology company’s stock valued at $85,000 after buying an additional 1,238 shares in the last quarter. Parallel Advisors LLC grew its stake in shares of Rapid7 by 81.6% in the fourth quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock valued at $46,000 after buying an additional 1,364 shares in the last quarter. Finally, Y.D. More Investments Ltd raised its holdings in shares of Rapid7 by 17.5% in the 4th quarter. Y.D. More Investments Ltd now owns 11,307 shares of the technology company’s stock valued at $172,000 after buying an additional 1,682 shares during the period. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

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.