Rapid7 (NASDAQ:RPD) Stock Sees Heavy Call Option Buying

Rapid7, Inc. (NASDAQ:RPD) was the target of unusually large options trading activity on Thursday. Investors bought 4,117 call options on the company. This represents an increase of 260% compared to the average daily volume of 1,145 call options.

Analysts Set New Price Targets

Several equities research analysts have weighed in on RPD shares. Raymond James Financial reissued an “outperform” rating and issued a $15.00 price target on shares of Rapid7 in a report on Tuesday, August 11th. Canaccord Genuity Group upped their price objective on shares of Rapid7 from $7.00 to $14.00 and gave the company a “hold” rating in a report on Tuesday, August 11th. UBS Group upped their price objective on shares of Rapid7 from $7.00 to $12.00 and gave the company a “neutral” rating in a report on Tuesday, August 11th. Stephens reiterated a “positive” rating on shares of Rapid7 in a research note on Tuesday, August 11th. Finally, Barclays boosted their target price on shares of Rapid7 from $6.50 to $12.00 and gave the stock an “underweight” rating in a research report on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $12.09.

Institutional Trading of Rapid7

Hedge funds have recently modified their holdings of the stock. Parallel Advisors LLC lifted its stake in Rapid7 by 108.8% in the first quarter. Parallel Advisors LLC now owns 6,340 shares of the technology company’s stock worth $35,000 after acquiring an additional 3,304 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new position in Rapid7 during the 2nd quarter worth approximately $38,000. Allworth Financial LP acquired a new position in Rapid7 during the 2nd quarter worth approximately $42,000. GAMMA Investing LLC increased its position in shares of Rapid7 by 20.6% in the 2nd quarter. GAMMA Investing LLC now owns 5,866 shares of the technology company’s stock valued at $48,000 after purchasing an additional 1,000 shares during the last quarter. Finally, Pinnacle Wealth Planning Services Inc. increased its position in shares of Rapid7 by 34.5% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 5,752 shares of the technology company’s stock valued at $70,000 after purchasing an additional 1,475 shares during the last quarter. 95.66% of the stock is currently owned by institutional investors and hedge funds.

Rapid7 Stock Performance

Shares of RPD stock opened at $16.56 on Friday. Rapid7 has a 12-month low of $4.97 and a 12-month high of $18.72. 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 business’s 50 day moving average is $12.89 and its two-hundred day moving average is $9.53. The company has a market capitalization of $1.12 billion, a P/E ratio of 53.42 and a beta of 1.02.

Rapid7 (NASDAQ:RPD) last announced its earnings results on Monday, August 10th. The technology company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.09. The company had revenue of $210.88 million during the quarter, compared to analysts’ expectations 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% on a year-over-year basis. During the same period last year, the business posted $0.58 EPS. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. Analysts expect that Rapid7 will post 0.76 EPS for the current fiscal year.

Rapid7 Company Profile

Rapid7, Inc (NASDAQ:RPD) is a cybersecurity company that provides technology and services to help organizations identify, assess and manage security risk across their IT environments. Its offerings are designed to support security operations, vulnerability management, cloud security, application security and incident response.

The company’s product portfolio includes the Insight platform and solutions such as InsightVM for vulnerability risk management, InsightIDR for security detection and response, InsightCloudSec for cloud security and compliance, and InsightAppSec for application security testing.