Rapid7 (NASDAQ:RPD) Stock Price Down 6.6% – Here’s What Happened

Rapid7, Inc. (NASDAQ:RPD)’s share price was down 6.6% on Wednesday . The stock traded as low as $11.69 and last traded at $12.5030. 369,267 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 2,162,021 shares. The stock had previously closed at $13.38.

Rapid7 News Roundup

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Quarterly earnings beat expectations: Rapid7 reported adjusted earnings of $0.44 per share versus the $0.35 consensus estimate, while revenue of $210.88 million also exceeded expectations. Management’s third-quarter earnings guidance of $0.44–$0.47 per share provides additional support, although revenue declined 1.5% year over year. Rapid7 Q2 2026 earnings
• Positive Sentiment: Analysts see potential upside: Robert W. Baird and JPMorgan published forecasts calling for strong price appreciation in Rapid7 shares, while Stephens raised its price target to $12. These actions indicate improving sentiment around the cybersecurity company’s earnings and strategy. Baird Rapid7 forecast JPMorgan Rapid7 forecast Stephens raises Rapid7 price target
• Positive Sentiment: AI governance research reinforces market opportunity: Rapid7 and Omdia found that executive security leaders are 1.6 times more likely than operational security managers to express high concern about how AI vendors handle company security data. The findings could support demand for AI-powered security monitoring, governance and compliance solutions. Rapid7-Omdia AI governance research
• Neutral Sentiment: Restructuring could improve focus but carries execution risk: Rapid7 announced a 2026 restructuring intended to refocus the business on its core platform. The strategy may improve efficiency and sharpen product priorities, but restructuring costs and disruption could weigh on near-term results. Rapid7 announces 2026 restructuring
• Negative Sentiment: Analyst views remain divided: Conflicting recommendations suggest that investors do not have a clear consensus on Rapid7’s valuation or outlook. Stephens’ $12 target is also below the recently cited trading level, limiting the immediate upside implied by that target. Analyst sentiment on Rapid7
• Negative Sentiment: Recent volatility highlights valuation risk: Rapid7 shares previously fell sharply despite the earnings beat, and revenue remains below the prior-year level. Investors may continue to focus on growth durability, leverage and whether the restructuring can produce sustained profitability. Rapid7 share decline and GF Score analysis

Analyst Ratings Changes

A number of brokerages have recently issued reports on RPD. Raymond James Financial restated an “outperform” rating and set a $15.00 price objective on shares of Rapid7 in a report on Tuesday. JPMorgan Chase & Co. increased their target price on Rapid7 from $7.00 to $12.00 and gave the stock a “neutral” rating in a research note on Tuesday. Truist Financial lifted their price target on Rapid7 from $6.00 to $10.00 and gave the stock a “hold” rating in a report on Tuesday, July 21st. Scotiabank boosted their price target on Rapid7 from $7.00 to $10.15 and gave the company a “sector perform” rating in a research note on Tuesday. Finally, Mizuho upped their price objective on Rapid7 from $8.00 to $11.00 and gave the company a “neutral” rating in a report on Wednesday, July 15th. One investment 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. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $11.98.

Rapid7 Stock Up 12.3%

The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 1.69. The firm has a market cap of $928.77 million, a price-to-earnings ratio of 44.45 and a beta of 0.97. The firm’s 50 day simple moving average is $9.55 and its two-hundred day simple moving average is $7.96.

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 analysts’ consensus estimates of $0.35 by $0.09. Rapid7 had a net margin of 2.35% and a return on equity of 29.93%. The firm had revenue of $210.88 million for the quarter, compared to analyst estimates of $208.23 million. During the same quarter in the prior year, the business posted $0.58 EPS. The business’s revenue was down 1.5% compared to the same quarter last year. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. On average, equities analysts forecast that Rapid7, Inc. will post 0.67 EPS for the current year.

Hedge Funds Weigh In On Rapid7

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in shares of Rapid7 by 7.6% during the 4th quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company’s stock worth $140,961,000 after purchasing an additional 653,498 shares in the last quarter. First Trust Advisors LP raised its stake in 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 purchasing an additional 758,009 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in 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 purchasing an additional 34,438 shares in the last quarter. Geode Capital Management LLC lifted its position in 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 period. Finally, Marshall Wace LLP lifted its position in Rapid7 by 23.3% during the fourth quarter. Marshall Wace LLP now owns 1,404,686 shares of the technology company’s stock worth $21,351,000 after purchasing an additional 265,413 shares during the period. 95.66% of the stock is owned by institutional investors and hedge funds.

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.