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

Rapid7, Inc. (NASDAQ:RPD) shares gapped down before the market opened on Tuesday . The stock had previously closed at $11.95, but opened at $11.16. Rapid7 shares last traded at $10.7460, with a volume of 424,913 shares traded.

Analysts Set New Price Targets

Several analysts have recently commented on RPD shares. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $11.00 price objective on shares of Rapid7 in a report on Thursday. Wall Street Zen cut shares of Rapid7 from a “buy” rating to a “hold” rating in a report on Tuesday, April 14th. Weiss Ratings restated a “sell (d)” rating on shares of Rapid7 in a research report on Wednesday, June 24th. Stifel Nicolaus lowered their price target on shares of Rapid7 from $9.00 to $7.00 and set a “hold” rating on the stock in a report on Wednesday, May 6th. Finally, William Blair downgraded Rapid7 from an “outperform” rating to a “market perform” rating in a research report on Tuesday, April 28th. One investment analyst has rated the stock with a Buy rating, seventeen have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus target price of $9.03.

Rapid7 Trading Down 11.6%

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 company has a 50-day simple moving average of $8.32 and a 200 day simple moving average of $8.34. The firm has a market cap of $705.93 million, a PE ratio of 30.16 and a beta of 1.01.

Rapid7 (NASDAQ:RPD) last posted its earnings results on Tuesday, May 5th. The technology company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.30 by $0.06. The firm had revenue of $209.69 million during 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 quarterly revenue was down .3% on a year-over-year basis. During the same period in the previous 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. As a group, sell-side analysts forecast that Rapid7, Inc. will post 0.63 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RPD. Parallel Advisors LLC raised its position in shares of Rapid7 by 108.8% in the first 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 during the period. Sound Income Strategies LLC acquired a new stake in shares of Rapid7 during the 4th quarter valued at about $40,000. Headlands Technologies LLC acquired a new stake in shares of Rapid7 during the 2nd quarter valued at about $44,000. GAMMA Investing LLC increased its stake 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 purchasing an additional 1,000 shares in the last quarter. Finally, KBC Group NV increased its stake in shares of Rapid7 by 124.0% in the 4th 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. Hedge funds and other institutional investors own 95.66% of the company’s stock.

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.