Rapid7 (NASDAQ:RPD) Sets New 1-Year Low Following Analyst Downgrade

Shares of Rapid7, Inc. (NASDAQ:RPD) reached a new 52-week low on Wednesday after Scotiabank lowered their price target on the stock from $18.00 to $9.00. Scotiabank currently has a sector perform rating on the stock. Rapid7 traded as low as $7.81 and last traded at $8.1490, with a volume of 311308 shares traded. The stock had previously closed at $10.39.

RPD has been the subject of several other reports. Canaccord Genuity Group set a $10.00 target price on Rapid7 and gave the stock a “hold” rating in a research note on Wednesday. Barclays lowered 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. Truist Financial reduced their target price on shares of Rapid7 from $14.00 to $8.00 and set a “hold” rating on the stock in a report on Wednesday. Berenberg Bank assumed coverage on shares of Rapid7 in a research note on Tuesday, November 18th. They set a “hold” rating and a $16.00 price target for the company. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Rapid7 in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, sixteen have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $15.16.

Insider Activity

In other news, CEO Corey E. Thomas bought 14,500 shares of Rapid7 stock in a transaction dated Monday, November 24th. The stock was purchased at an average price of $13.82 per share, for a total transaction of $200,390.00. Following the purchase, the chief executive officer directly owned 595,066 shares in the company, valued at $8,223,812.12. The trade was a 2.50% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Thomas E. Schodorf purchased 6,300 shares of the company’s stock in a transaction that occurred on Wednesday, November 26th. The shares were purchased at an average cost of $15.70 per share, for a total transaction of $98,910.00. Following the completion of the transaction, the director directly owned 34,440 shares of the company’s stock, valued at $540,708. This represents a 22.39% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 67,345 shares of company stock worth $1,025,202. Company insiders own 2.40% of the company’s stock.

Key Stories Impacting Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Q4 results narrowly beat expectations — EPS $0.44 vs. $0.40 consensus and revenue $217.4M vs. $215.2M, showing modest operational resilience. Earnings Report
• Positive Sentiment: Full‑year FY2026 EPS guidance (non‑GAAP) of $1.50–$1.60 is above prior consensus (~$1.45), which supports longer‑term profitability expectations. Press Release
• Positive Sentiment: Strong cash generation and FCF: full‑year operating cash ~$154M and free cash flow ~$130M — balance sheet liquidity is a stabilizing factor. Financials
• Neutral Sentiment: Corporate wins and partner recognition (2026 Partner of the Year awards, new Microsoft MDR integration, ARMO partnership) underline product momentum but are longer‑term positives. Partner Awards
• Neutral Sentiment: ARR was flat at $840M year‑over‑year — steady recurring revenue but little ARR growth, which tempers enthusiasm. Quiver Summary
• Negative Sentiment: Near‑term revenue and Q1 EPS guidance came in below Street expectations: Q1 revenue $207–$209M (consensus ~$213M) and Q1 non‑GAAP EPS $0.29–$0.32 vs. consensus ~$0.34 — the weaker top‑line outlook drove immediate selling pressure. Guidance Details
• Negative Sentiment: Multiple analyst price‑target cuts and hold/neutral reiterations (Truist to $8, Scotiabank to $9, UBS reaffirmed $9) raise downside pressure; several reports highlight revenue guidance as the catalyst. Benzinga Coverage TickerReport (Truist) Mizuho Note

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RPD. 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. Penserra Capital Management LLC increased its holdings in shares of Rapid7 by 45.3% in the 2nd quarter. Penserra Capital Management LLC now owns 2,731,192 shares of the technology company’s stock worth $63,172,000 after buying an additional 851,108 shares during the last quarter. Assenagon Asset Management S.A. raised its position in shares of Rapid7 by 366.2% during the 3rd quarter. Assenagon Asset Management S.A. now owns 144,707 shares of the technology company’s stock valued at $2,713,000 after buying an additional 113,664 shares in the last quarter. CenterBook Partners LP lifted its holdings in shares of Rapid7 by 68.9% during the 2nd quarter. CenterBook Partners LP now owns 253,629 shares of the technology company’s stock worth $5,866,000 after acquiring an additional 103,504 shares during the last quarter. Finally, DDD Partners LLC purchased a new position in Rapid7 in the second quarter worth $846,000. Hedge funds and other institutional investors own 95.66% of the company’s stock.

Rapid7 Trading Down 24.6%

The stock has a 50 day moving average of $14.00 and a 200 day moving average of $16.95. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.19 and a quick ratio of 1.19. The firm has a market cap of $513.23 million, a P/E ratio of 23.01 and a beta of 0.79.

Rapid7 (NASDAQ:RPD) last announced its quarterly earnings data on Tuesday, February 10th. The technology company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.40 by $0.04. Rapid7 had a return on equity of 67.30% and a net margin of 2.61%.The firm had revenue of $217.39 million for the quarter, compared to analyst estimates of $215.17 million. During the same period in the prior year, the company earned $0.48 EPS. The company’s revenue was up .5% on a year-over-year basis. Rapid7 has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.290-0.320 EPS. As a group, equities research analysts predict that Rapid7, Inc. will post 0.35 EPS for the current year.

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.