Scotiabank Has Pessimistic Outlook of Rapid7 FY2026 Earnings

Rapid7, Inc. (NASDAQ:RPD) – Scotiabank dropped their FY2026 earnings per share estimates for Rapid7 in a note issued to investors on Thursday, February 19th. Scotiabank analyst P. Colville now anticipates that the technology company will post earnings per share of $0.60 for the year, down from their prior estimate of $0.74. Scotiabank has a “Sector Perform” rating and a $9.00 price objective on the stock. The consensus estimate for Rapid7’s current full-year earnings is $0.35 per share. Scotiabank also issued estimates for Rapid7’s FY2027 earnings at $0.60 EPS.

Rapid7 (NASDAQ:RPD) last announced its quarterly 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 business had revenue of $217.39 million for the quarter, compared to the consensus estimate of $215.17 million. Rapid7 had a net margin of 2.72% and a return on equity of 47.33%. Rapid7’s revenue for the quarter was up .5% on a year-over-year basis. During the same period last year, the company posted $0.48 EPS. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS.

A number of other brokerages have also weighed in on RPD. Mizuho cut their price target on shares of Rapid7 from $16.00 to $12.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 11th. UBS Group restated a “neutral” rating and set a $9.00 price objective on shares of Rapid7 in a report on Wednesday, February 11th. Piper Sandler reduced their target price on shares of Rapid7 from $16.00 to $10.00 and set a “neutral” rating for the company in a research note on Wednesday, February 11th. Canaccord Genuity Group set a $10.00 price target on Rapid7 and gave the company a “hold” rating in a research note on Wednesday, February 11th. Finally, Stephens reduced their price objective on Rapid7 from $19.00 to $12.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 11th. Two research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $12.53.

Rapid7 Price Performance

Shares of RPD opened at $6.12 on Monday. The stock has a 50 day simple moving average of $12.35 and a 200 day simple moving average of $16.06. Rapid7 has a 52-week low of $6.07 and a 52-week high of $31.87. The company has a debt-to-equity ratio of 5.77, a quick ratio of 1.28 and a current ratio of 1.28. The firm has a market capitalization of $403.25 million, a PE ratio of 17.00 and a beta of 0.79.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Acadian Asset Management LLC boosted its holdings in Rapid7 by 136.7% in the 2nd quarter. Acadian Asset Management LLC now owns 169,955 shares of the technology company’s stock valued at $3,924,000 after purchasing an additional 98,161 shares during the period. LSV Asset Management bought a new position in shares of Rapid7 during the third quarter worth approximately $14,719,000. Penserra Capital Management LLC raised its position in shares of Rapid7 by 45.3% in the second quarter. Penserra Capital Management LLC now owns 2,731,192 shares of the technology company’s stock valued at $63,172,000 after buying an additional 851,108 shares in the last quarter. CenterBook Partners LP boosted its stake in shares of Rapid7 by 68.9% in the second quarter. CenterBook Partners LP now owns 253,629 shares of the technology company’s stock valued at $5,866,000 after buying an additional 103,504 shares during the period. Finally, Assenagon Asset Management S.A. grew its position in Rapid7 by 366.2% during the third quarter. Assenagon Asset Management S.A. now owns 144,707 shares of the technology company’s stock worth $2,713,000 after buying an additional 113,664 shares in the last quarter. 95.66% of the stock is currently owned by institutional investors.

Insider Activity

In related news, Director Thomas E. Schodorf acquired 6,300 shares of the company’s stock in a transaction dated Wednesday, November 26th. The shares were bought at an average price of $15.70 per share, for a total transaction of $98,910.00. Following the purchase, the director directly owned 34,440 shares in the company, valued at approximately $540,708. This trade represents a 22.39% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jana Partners Management, Lp acquired 41,545 shares of the business’s stock in a transaction dated Friday, November 28th. The stock was bought at an average cost of $15.71 per share, with a total value of $652,671.95. Following the acquisition, the director owned 6,760,149 shares in the company, valued at $106,201,940.79. The trade was a 0.62% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 2.40% 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.