Rapid7 (NASDAQ:RPD) Shares Up 9.1% – Should You Buy?

Rapid7, Inc. (NASDAQ:RPD)’s share price shot up 9.1% on Thursday . The company traded as high as $13.36 and last traded at $13.3910. Approximately 1,046,506 shares were traded during mid-day trading, a decline of 52% from the average session volume of 2,172,773 shares. The stock had previously closed at $12.27.

Key Stories Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. Rapid7 reported adjusted earnings of $0.44 per share versus the $0.35 consensus estimate, while revenue of $210.88 million also topped forecasts. Management issued third-quarter adjusted EPS guidance of $0.44-$0.47, supporting the recent upward move despite modest year-over-year revenue pressure. Rapid7 Shares Gap Up Following Earnings Beat
• Positive Sentiment: Analysts raised or maintained optimistic valuation views. Stephens increased its price target to $12, while reports from JPMorgan and Robert W. Baird described the stock as having potential for strong appreciation. These calls may be helping improve sentiment after the earnings release. Stephens Boosts Rapid7 Price Target JPMorgan Forecasts Strong Price Appreciation Baird Forecasts Strong Price Appreciation
• Positive Sentiment: AI security research highlights a potential growth opportunity. Rapid7 and Omdia found that executive security leaders are 1.6 times more likely than operational managers to be highly concerned about how AI vendors handle security data. The governance gap could increase demand for Rapid7’s AI-powered cybersecurity and risk-management offerings. Rapid7-Omdia AI Governance Research
• Neutral Sentiment: Rapid7 announced a 2026 restructuring to refocus its core platform. The plan may improve strategic focus and operating efficiency, but restructuring can also create near-term execution challenges and expenses. Rapid7 Announces 2026 Restructuring
• Negative Sentiment: Analyst sentiment is not unanimous. Conflicting views on Rapid7 suggest that concerns about slowing revenue, profitability and valuation remain, potentially limiting the stock’s upside after its recent rebound. Conflicting Analyst Sentiment on Rapid7

Analysts Set New Price Targets

RPD has been the topic of several research analyst reports. DA Davidson lifted their price objective on Rapid7 from $5.25 to $9.00 and gave the company an “underperform” rating in a research note on Tuesday. William Blair lowered shares of Rapid7 from an “outperform” rating to a “market perform” rating in a report on Tuesday, April 28th. Jefferies Financial Group reiterated a “hold” rating and set a $12.00 price objective on shares of Rapid7 in a research note on Tuesday. Robert W. Baird raised their target price on shares of Rapid7 from $8.00 to $10.00 and gave the company a “neutral” rating in a research note on Tuesday. Finally, Barclays upped their price target on shares of Rapid7 from $6.50 to $12.00 and gave the stock an “underweight” rating in a research report on Tuesday. One equities research analyst has rated the stock with a Buy rating, eighteen have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, Rapid7 has a consensus rating of “Reduce” and an average price target of $11.98.

Rapid7 Trading Up 9.8%

The firm has a market cap of $907.74 million, a price-to-earnings ratio of 43.31 and a beta of 0.97. The business’s 50 day moving average price is $9.43 and its 200-day moving average price is $7.95. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.78 and a current ratio of 0.78.

Rapid7 (NASDAQ:RPD) last posted its earnings results on Monday, August 10th. The technology company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.35 by $0.09. Rapid7 had a return on equity of 29.93% and a net margin of 2.35%.The company had revenue of $210.88 million during the quarter, compared to analyst estimates of $208.23 million. During the same period in the prior year, the company earned $0.58 earnings per share. 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. Equities analysts expect that Rapid7, Inc. will post 0.63 EPS for the current year.

Institutional Investors Weigh In On Rapid7

A number of institutional investors have recently bought and sold shares of the business. Headlands Technologies LLC purchased a new position in Rapid7 during the second quarter valued at approximately $44,000. Parallel Advisors LLC raised its holdings in shares of Rapid7 by 81.6% during the fourth quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock worth $46,000 after acquiring an additional 1,364 shares in the last quarter. KBC Group NV grew its stake in Rapid7 by 124.0% in the fourth quarter. KBC Group NV now owns 3,310 shares of the technology company’s stock valued at $50,000 after purchasing an additional 1,832 shares in the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of Rapid7 during the 4th quarter valued at about $71,000. Finally, Advisors Asset Management Inc. bought a new stake in shares of Rapid7 in the 4th quarter valued at approximately $79,000. 95.66% of the stock is currently 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.