Rapid7 (NASDAQ:RPD) Given “Hold” Rating at Needham & Company LLC

Rapid7 (NASDAQ:RPD)‘s stock had its “hold” rating reaffirmed by Needham & Company LLC in a report issued on Wednesday,Benzinga reports.

Several other research analysts have also recently weighed in on RPD. Canaccord Genuity Group set a $10.00 price objective on Rapid7 and gave the stock a “hold” rating in a research report on Wednesday. Mizuho dropped their target price on shares of Rapid7 from $16.00 to $12.00 and set a “neutral” rating on the stock in a research note on Wednesday. Berenberg Bank assumed coverage on Rapid7 in a research note on Tuesday, November 18th. They issued a “hold” rating and a $16.00 price objective on the stock. Barclays downgraded shares of Rapid7 from an “equal weight” rating to an “underweight” rating and dropped their price objective for the company from $18.00 to $15.00 in a report on Monday, January 5th. Finally, Royal Bank Of Canada lowered their price target on shares of Rapid7 from $19.00 to $16.00 and set a “sector perform” rating on the stock in a research report on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, fifteen have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $17.58.

Rapid7 Stock Performance

RPD opened at $10.39 on Wednesday. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 7.01. Rapid7 has a 1-year low of $10.20 and a 1-year high of $38.47. The company has a market cap of $680.34 million, a price-to-earnings ratio of 30.56 and a beta of 0.79. The company’s fifty day moving average price is $14.00 and its two-hundred day moving average price is $16.95.

Rapid7 (NASDAQ:RPD) last posted its earnings results on Tuesday, February 10th. The technology company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.04. The company had revenue of $217.39 million for the quarter, compared to analyst estimates of $215.17 million. Rapid7 had a return on equity of 67.30% and a net margin of 2.61%.The company’s revenue for the quarter was up .5% on a year-over-year basis. During the same quarter last year, the company earned $0.48 earnings per share. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS. On average, analysts expect that Rapid7 will post 0.35 EPS for the current fiscal year.

Insider Transactions at Rapid7

In other Rapid7 news, Director Mike Burns purchased 2,000 shares of the company’s stock in a transaction dated Thursday, November 20th. The stock was purchased at an average price of $13.80 per share, for a total transaction of $27,600.00. Following the transaction, the director owned 5,000 shares in the company, valued at $69,000. The trade was a 66.67% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Marc Evan Brown acquired 3,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The stock was bought at an average price of $15.21 per share, for a total transaction of $45,630.00. Following the completion of the transaction, the director owned 51,882 shares of the company’s stock, valued at $789,125.22. The trade was a 6.14% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have bought 67,345 shares of company stock worth $1,025,202. 2.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Prudential Financial Inc. increased its position in shares of Rapid7 by 8.8% in the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock valued at $197,000 after acquiring an additional 690 shares during the period. Wealth Enhancement Advisory Services LLC lifted its position in shares of Rapid7 by 6.3% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 12,427 shares of the technology company’s stock worth $221,000 after purchasing an additional 732 shares during the period. CI Investments Inc. lifted its position in shares of Rapid7 by 48.4% in the 3rd quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock worth $43,000 after purchasing an additional 744 shares during the period. Nordea Investment Management AB boosted its stake in shares of Rapid7 by 1.0% during the 2nd quarter. Nordea Investment Management AB now owns 78,294 shares of the technology company’s stock valued at $1,808,000 after purchasing an additional 753 shares in the last quarter. Finally, Teacher Retirement System of Texas increased its position in shares of Rapid7 by 1.6% during the second quarter. Teacher Retirement System of Texas now owns 54,981 shares of the technology company’s stock valued at $1,272,000 after buying an additional 890 shares during the period. Hedge funds and other institutional investors own 95.66% of the company’s stock.

Key Stories Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q4 results beat expectations — GAAP/non‑GAAP beats: EPS $0.44 vs. $0.40 consensus and revenue $217.4M vs. ~$215M expected; shows the business still generating growth and margin leverage. MarketBeat Earnings Snapshot
• Positive Sentiment: Strong cash flow and liquidity — full‑year free cash flow ~$130M and cash & equivalents + gov’t securities ~$659M, providing runway for product investment and M&A flexibility. Press Release
• Positive Sentiment: Product and partner momentum — ARR remains sizable at $840M; notable commercial moves (general availability of MDR for Microsoft, partnership with ARMO) support long‑term growth in AI‑driven security services. Press Release
• Neutral Sentiment: Industry recognition — Rapid7 cited as a Leader in Gartner’s 2025 Magic Quadrant for Exposure Assessment Platforms, which supports competitive positioning but is not an immediate earnings driver. Press Release
• Negative Sentiment: Revenue guidance disappointed — FY2026 revenue guidance $835M–$843M vs. consensus ~ $870M; Q1 revenue guidance $207M–$209M below the ~$213M Street estimate. That top‑line shortfall is the primary driver of the stock decline. Guidance Coverage
• Negative Sentiment: Q1 EPS guide below consensus — company guided $0.29–$0.32 for Q1 vs. ~ $0.34 consensus, signaling near‑term margin compression as Rapid7 continues AI/security investments. (Full‑year non‑GAAP EPS guide was slightly above consensus, but investors focused on near‑term miss.) Earnings Call Highlights
• Negative Sentiment: Flat ARR and modest growth — ARR of $840M was flat year‑over‑year and full‑year revenue rose only ~2%, raising concerns that subscription expansion is slowing and making guidance misses more meaningful. QuiverQuant Summary
• Negative Sentiment: Market reaction: several outlets note the stock dropped despite the beat, reflecting investor focus on the weaker guidance and ARR stagnation. MSN Coverage

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.