Rapid7 (NASDAQ:RPD) Trading Down 6.6% – Time to Sell?

Posted by Francis Steltz on Aug 12th, 2026

Rapid7, Inc. (NASDAQ:RPD – Get Free Report)’s stock price traded down 6.6% on Wednesday . The company traded as low as $11.69 and last traded at $12.5030. Approximately 369,267 shares traded hands during trading, a decline of 83% from the average session volume of 2,162,021 shares. The stock had previously closed at $13.38.

Key Headlines Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

Positive Sentiment: Second-quarter results exceeded expectations. Rapid7 reported adjusted EPS of $0.44, above the $0.35 consensus estimate, while revenue of $210.9 million modestly topped expectations of $208.2 million. The company also generated $37 million in operating cash flow and ended the quarter with $425.6 million in cash. Rapid7 second-quarter earnings report
Positive Sentiment: Profit guidance was raised relative to consensus. Rapid7 expects third-quarter adjusted EPS of $0.44-$0.47, well above analysts’ $0.38 estimate. Analysts subsequently lifted their price targets, reflecting improved confidence in the company’s earnings execution. Rapid7 analyst forecast revisions
Positive Sentiment: AI governance concerns may support demand for cybersecurity services. New Rapid7-Omdia research found executives are 1.6 times more likely than operational security managers to be highly concerned about vendors’ handling of security data. The findings reinforce the need for governed, trusted AI security solutions, although the announcement does not include a new contract or financial forecast. Rapid7-Omdia AI governance research
Neutral Sentiment: Analyst targets increased but ratings remain cautious. JPMorgan, Stephens and Baird raised their targets to $12, yet each maintained a neutral or equal-weight rating, leaving targets below the prevailing share price.
Negative Sentiment: Growth remains weak and guidance is mixed. Second-quarter revenue fell roughly 1.5% year over year, and third-quarter revenue guidance of $208 million-$210 million is slightly below the $210.5 million consensus. EPS also declined from $0.58 a year earlier, increasing concerns that the earnings beat reflects cost control more than renewed demand.

Wall Street Analysts Forecast Growth

RPD has been the topic of a number of analyst reports. Stifel Nicolaus upped their price objective on shares of Rapid7 from $7.00 to $13.00 and gave the company a “hold” rating in a research note on Tuesday. Susquehanna lifted their target price on shares of Rapid7 from $7.00 to $15.00 and gave the stock a “neutral” rating in a research note on Wednesday. Canaccord Genuity Group boosted their target price on shares of Rapid7 from $7.00 to $14.00 and gave the company a “hold” rating in a report on Tuesday. Morgan Stanley cut shares of Rapid7 from an “equal weight” rating to an “underweight” rating and set a $9.00 price target on the stock. in a research report on Tuesday, July 21st. Finally, Royal Bank Of Canada increased their price target on Rapid7 from $11.00 to $12.00 and gave the stock a “sector perform” rating in a report on Tuesday. One research analyst has rated the stock with a Buy rating, eighteen have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Reduce” and an average target price of $11.98.

Read Our Latest Analysis on RPD

Rapid7 Trading Down 5.3%

The firm’s 50-day moving average price is $9.34 and its 200 day moving average price is $7.96. The company has a market cap of $846.74 million, a price-to-earnings ratio of 40.87 and a beta of 0.97. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 1.69.

Rapid7 (NASDAQ:RPD – Get Free Report) last released its earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.35 by $0.09. The company had revenue of $210.88 million for the quarter, compared to the consensus estimate of $208.23 million. Rapid7 had a net margin of 2.35% and a return on equity of 29.93%. Rapid7’s quarterly revenue was down 1.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.58 EPS. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. As a group, equities analysts expect that Rapid7, Inc. will post 0.63 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in shares of Rapid7 by 7.6% during the fourth quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company’s stock valued at $140,961,000 after acquiring an additional 653,498 shares in the last quarter. First Trust Advisors LP lifted its holdings in shares of Rapid7 by 48.3% in the 4th quarter. First Trust Advisors LP now owns 2,326,056 shares of the technology company’s stock worth $35,356,000 after purchasing an additional 758,009 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of 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 worth $40,716,000 after purchasing an additional 34,438 shares in the last quarter. Geode Capital Management LLC grew 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 purchasing an additional 78,448 shares during the period. Finally, Marshall Wace LLP grew its position 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 purchasing an additional 265,413 shares during the period. 95.66% of the stock is owned by institutional investors and hedge funds.

About Rapid7

(Get Free Report)

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.