Rapid7 (NASDAQ:RPD) Shares Gap Down – Should You Sell?

Rapid7, Inc. (NASDAQ:RPD) gapped down before the market opened on Tuesday . The stock had previously closed at $12.79, but opened at $12.12. Rapid7 shares last traded at $12.1450, with a volume of 397,145 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have commented on RPD shares. Morgan Stanley lowered shares of Rapid7 from an “equal weight” rating to an “underweight” rating and set a $9.00 price objective on the stock. in a report on Tuesday, July 21st. DA Davidson upped their target price on shares of Rapid7 from $5.25 to $9.00 and gave the stock an “underperform” rating in a research report on Tuesday, August 11th. UBS Group increased their price target on shares of Rapid7 from $7.00 to $12.00 and gave the company a “neutral” rating in a research note on Tuesday, August 11th. Truist Financial raised their price target on shares of Rapid7 from $6.00 to $10.00 and gave the company a “hold” rating in a report on Tuesday, July 21st. Finally, Stifel Nicolaus boosted their price objective on shares of Rapid7 from $7.00 to $13.00 and gave the stock a “hold” rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $11.98.

Rapid7 Price Performance

The stock has a market capitalization of $839.80 million, a P/E ratio of 40.19 and a beta of 1.01. 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 company has a fifty day simple moving average of $11.49 and a two-hundred day simple moving average of $8.43.

Rapid7 (NASDAQ:RPD) last issued its earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.09. Rapid7 had a net margin of 2.35% and a return on equity of 27.89%. The company had revenue of $210.88 million for the quarter, compared to analyst estimates of $208.23 million. During the same quarter last year, the firm earned $0.58 EPS. The company’s revenue for the quarter was down 1.5% on a year-over-year basis. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. Sell-side analysts expect that Rapid7, Inc. will post 0.74 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC raised 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 buying an additional 1,000 shares in the last quarter. Versant Capital Management Inc lifted its holdings in shares of Rapid7 by 13.4% during the 2nd quarter. Versant Capital Management Inc now owns 10,469 shares of the technology company’s stock worth $85,000 after acquiring an additional 1,238 shares during the period. State of Wyoming boosted its position in shares of Rapid7 by 14.1% during the 4th quarter. State of Wyoming now owns 25,805 shares of the technology company’s stock worth $392,000 after acquiring an additional 3,196 shares in the last quarter. Parallel Advisors LLC boosted its position in shares of Rapid7 by 108.8% during the 1st 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 in the last quarter. Finally, Allworth Financial LP increased its stake in Rapid7 by 511.3% in the second quarter. Allworth Financial LP now owns 5,245 shares of the technology company’s stock valued at $42,000 after acquiring an additional 4,387 shares during the last quarter. Institutional investors own 95.66% of the company’s stock.

Rapid7 Company Profile

Rapid7, Inc (NASDAQ:RPD) is a cybersecurity company that helps organizations identify, assess and manage security risks across their IT environments. Its offerings are designed to provide visibility into vulnerabilities, endpoints, users, applications, cloud infrastructure and other technology assets, enabling customers to prioritize threats and respond to security incidents.

The company delivers many of its products through the Rapid7 Insight platform. Key offerings include InsightVM for vulnerability risk management, InsightIDR for security information and event detection and response, InsightCloudSec for cloud security and risk management, and InsightConnect for security orchestration and automation.