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

Rapid7, Inc. (NASDAQ:RPD)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $11.48, but opened at $11.02. Rapid7 shares last traded at $11.21, with a volume of 581,102 shares.

Wall Street Analyst Weigh In

Several analysts have commented on RPD shares. Truist Financial cut their target price on Rapid7 from $8.00 to $6.00 and set a “hold” rating on the stock in a research note on Friday, April 24th. Barclays dropped their price target on shares of Rapid7 from $8.00 to $6.50 and set an “underweight” rating on the stock in a research note on Thursday, May 7th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Rapid7 in a report on Wednesday, June 24th. DA Davidson lifted their price target on shares of Rapid7 from $5.25 to $6.50 and gave the company an “underperform” rating in a report on Tuesday, June 2nd. Finally, Raymond James Financial set a $8.00 price objective on shares of Rapid7 in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Reduce” and an average price target of $8.71.

Rapid7 Trading Down 2.0%

The company has a debt-to-equity ratio of 1.69, a current ratio of 0.78 and a quick ratio of 0.78. The stock has a 50-day moving average price of $7.42 and a two-hundred day moving average price of $8.54. The stock has a market cap of $752.10 million, a PE ratio of 32.08 and a beta of 1.01.

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

Institutional Trading of Rapid7

Institutional investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Rapid7 by 114.9% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,136,438 shares of the technology company’s stock worth $49,409,000 after acquiring an additional 1,142,148 shares during the period. JANA Partners Management LP boosted its holdings in shares of Rapid7 by 13.5% in the 3rd 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 in the last quarter. First Trust Advisors LP boosted 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 acquiring an additional 758,009 shares in the last quarter. Vanguard Group Inc. grew its stake in 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 buying an additional 653,498 shares during the last quarter. Finally, Marshall Wace LLP grew its stake in shares of Rapid7 by 60.9% during the third quarter. Marshall Wace LLP now owns 1,139,273 shares of the technology company’s stock worth $21,361,000 after acquiring an additional 431,195 shares during the last quarter. 95.66% of the stock is currently owned by 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.