Rapid7 (NASDAQ:RPD) Stock Price Down 6.6% – Should You Sell?

Rapid7, Inc. (NASDAQ:RPD)’s stock price dropped 6.6% during mid-day trading on Wednesday . The company traded as low as $9.95 and last traded at $9.9140. 723,747 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 2,117,922 shares. The stock had previously closed at $10.61.

Wall Street Analysts Forecast Growth

RPD has been the subject of a number of research reports. Scotiabank lowered their target price on Rapid7 from $9.00 to $7.00 and set a “sector perform” rating for the company in a research note on Wednesday, May 6th. Truist Financial boosted their target price on shares of Rapid7 from $6.00 to $10.00 and gave the stock a “hold” rating in a research note on Tuesday. Canaccord Genuity Group reduced their target price on shares of Rapid7 from $10.00 to $7.00 and set a “hold” rating on the stock in a research report on Wednesday, May 6th. DA Davidson increased their price target on shares of Rapid7 from $5.25 to $6.50 and gave the company an “underperform” rating in a research note on Tuesday, June 2nd. Finally, Robert W. Baird set a $8.00 price target on shares of Rapid7 in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and an average target price of $9.03.

Rapid7 Price Performance

The company has a 50-day moving average of $8.40 and a 200-day moving average of $8.31. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.78 and a current ratio of 0.78. The firm has a market capitalization of $645.91 million, a price-to-earnings ratio of 27.68 and a beta of 1.01.

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. The firm had revenue of $209.69 million for the quarter, compared to analyst estimates of $207.94 million. Rapid7 had a net margin of 2.61% and a return on equity of 34.35%. The business’s revenue was down .3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.49 earnings per share. Rapid7 has set its FY 2026 guidance at 1.520-1.600 EPS and its Q2 2026 guidance at 0.330-0.360 EPS. As a group, research analysts anticipate that Rapid7, Inc. will post 0.63 EPS for the current fiscal year.

Hedge Funds Weigh In On Rapid7

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted 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 purchasing an additional 653,498 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of Rapid7 by 48.3% during the fourth quarter. First Trust Advisors LP now owns 2,326,056 shares of the technology company’s stock worth $35,356,000 after buying an additional 758,009 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Rapid7 by 1.6% in the 3rd 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. Geode Capital Management LLC raised its position in Rapid7 by 5.7% in the 4th quarter. Geode Capital Management LLC now owns 1,462,653 shares of the technology company’s stock valued at $22,236,000 after buying an additional 78,448 shares during the last quarter. Finally, Marshall Wace LLP lifted its stake in Rapid7 by 23.3% in the 4th quarter. Marshall Wace LLP now owns 1,404,686 shares of the technology company’s stock valued at $21,351,000 after acquiring an additional 265,413 shares in the last quarter. 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.