Rapid7 (NASDAQ:RPD) Shares Down 9.1% – What’s Next?

Rapid7, Inc. (NASDAQ:RPD)’s share price dropped 9.1% during trading on Wednesday . The company traded as low as $7.61 and last traded at $7.66. Approximately 796,697 shares traded hands during trading, a decline of 60% from the average daily volume of 1,985,118 shares. The stock had previously closed at $8.43.

Wall Street Analysts Forecast Growth

RPD has been the subject of a number of research analyst reports. DA Davidson raised their target price on Rapid7 from $5.25 to $6.50 and gave the company an “underperform” rating in a report on Tuesday. Robert W. Baird set a $8.00 price target on shares of Rapid7 in a research report on Wednesday, May 6th. Wall Street Zen cut shares of Rapid7 from a “buy” rating to a “hold” rating in a research report on Tuesday, April 14th. UBS Group reissued a “neutral” rating and issued a $9.00 price target on shares of Rapid7 in a research report on Wednesday, February 11th. Finally, Morgan Stanley raised shares of Rapid7 from an “outperform” rating to a “neutral” rating in a research report on Tuesday. One investment analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Rapid7 currently has a consensus rating of “Reduce” and a consensus price target of $8.71.

Rapid7 Stock Performance

The firm has a 50 day moving average of $6.22 and a two-hundred day moving average of $9.92. The stock has a market cap of $513.25 million, a PE ratio of 21.94 and a beta of 1.03. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.78 and a quick ratio of 0.78.

Rapid7 (NASDAQ:RPD) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.36 earnings per share for the quarter, beating analysts’ consensus estimates of $0.30 by $0.06. Rapid7 had a net margin of 2.61% and a return on equity of 34.35%. The firm had revenue of $209.69 million during the quarter, compared to analysts’ expectations of $207.94 million. During the same period in the previous year, the company earned $0.49 earnings per share. Rapid7’s quarterly revenue 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. Research analysts predict that Rapid7, Inc. will post 0.63 EPS for the current fiscal year.

Institutional Investors Weigh In On Rapid7

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in shares of Rapid7 by 7.6% in the fourth quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company’s stock valued at $140,961,000 after buying an additional 653,498 shares during the last quarter. JANA Partners Management LP raised its holdings in shares of Rapid7 by 13.5% in the third quarter. JANA Partners Management LP now owns 6,502,108 shares of the technology company’s stock valued at $121,915,000 after buying an additional 772,194 shares during the last quarter. First Trust Advisors LP raised its holdings in shares of Rapid7 by 48.3% in the fourth quarter. First Trust Advisors LP now owns 2,326,056 shares of the technology company’s stock valued at $35,356,000 after buying an additional 758,009 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Rapid7 by 1.6% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,170,876 shares of the technology company’s stock valued at $40,716,000 after buying an additional 34,438 shares during the last quarter. Finally, Geode Capital Management LLC raised its stake in shares of Rapid7 by 5.7% during the fourth quarter. Geode Capital Management LLC now owns 1,462,653 shares of the technology company’s stock worth $22,236,000 after purchasing an additional 78,448 shares during the last quarter. 95.66% of the stock is 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.