Traders Buy Large Volume of Call Options on Rapid7 (NASDAQ:RPD)

Rapid7, Inc. (NASDAQ:RPD) was the recipient of some unusual options trading on Thursday. Stock investors acquired 4,117 call options on the stock. This represents an increase of 260% compared to the average daily volume of 1,145 call options.

Institutional Trading of Rapid7

Large investors have recently added to or reduced their stakes in the business. Quantinno Capital Management LP boosted its position in shares of Rapid7 by 776.1% in the first quarter. Quantinno Capital Management LP now owns 260,359 shares of the technology company’s stock worth $1,435,000 after purchasing an additional 230,641 shares during the period. Renaissance Technologies LLC raised its position in shares of Rapid7 by 535.0% during the 1st quarter. Renaissance Technologies LLC now owns 149,196 shares of the technology company’s stock valued at $822,000 after purchasing an additional 125,700 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of Rapid7 during the 2nd quarter valued at $3,844,000. Public Employees Retirement System of Ohio purchased a new position in shares of Rapid7 during the 2nd quarter valued at $393,000. Finally, Bank of America Corp DE purchased a new position in shares of Rapid7 during the 2nd quarter valued at $6,861,000. 95.66% of the stock is currently owned by institutional investors.

Rapid7 Stock Performance

Shares of RPD opened at $17.08 on Friday. The company has a debt-to-equity ratio of 1.50, a current ratio of 0.80 and a quick ratio of 0.80. Rapid7 has a one year low of $4.97 and a one year high of $18.82. The firm has a market capitalization of $1.15 billion, a P/E ratio of 55.10 and a beta of 1.02. The business has a fifty day moving average of $12.80 and a 200 day moving average of $9.51.

Rapid7 (NASDAQ:RPD) last announced its earnings results on Monday, August 10th. The technology company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.09. The business had revenue of $210.88 million for the quarter, compared to analysts’ expectations of $208.23 million. Rapid7 had a return on equity of 27.89% and a net margin of 2.35%. The business’s revenue for the quarter was down 1.5% on a year-over-year basis. During the same period last year, the firm posted $0.58 earnings per share. Rapid7 has set its Q3 2026 guidance at 0.440-0.470 EPS. As a group, sell-side analysts anticipate that Rapid7 will post 0.76 EPS for the current year.

Wall Street Analyst Weigh In

Several analysts recently commented on RPD shares. Morgan Stanley downgraded shares of Rapid7 from an “equal weight” rating to an “underweight” rating and set a $9.00 price objective on the stock. in a research report on Tuesday, July 21st. Barclays lifted their target price on shares of Rapid7 from $6.50 to $12.00 and gave the stock an “underweight” rating in a report on Tuesday, August 11th. Stephens reiterated a “positive” rating on shares of Rapid7 in a research note on Tuesday, August 11th. Robert W. Baird increased their price target on shares of Rapid7 from $8.00 to $10.00 and gave the company a “neutral” rating in a report on Tuesday, August 11th. Finally, Raymond James Financial reissued an “outperform” rating and set a $15.00 price target on shares of Rapid7 in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, seventeen have given a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $12.09.

About Rapid7

Rapid7, Inc (NASDAQ:RPD) is a cybersecurity company that provides technology and services to help organizations identify, assess and manage security risk across their IT environments. Its offerings are designed to support security operations, vulnerability management, cloud security, application security and incident response.

The company’s product portfolio includes the Insight platform and solutions such as InsightVM for vulnerability risk management, InsightIDR for security detection and response, InsightCloudSec for cloud security and compliance, and InsightAppSec for application security testing.