Rapid7 (NASDAQ:RPD) Sets New 12-Month Low on Analyst Downgrade

Rapid7, Inc. (NASDAQ:RPD)’s share price hit a new 52-week low during trading 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.

Several other brokerages also recently commented on RPD. DA Davidson decreased their target price on shares of Rapid7 from $16.00 to $14.00 and set an “underperform” rating on the stock in a research note on Wednesday, November 5th. Berenberg Bank began coverage on Rapid7 in a research report on Tuesday, November 18th. They issued a “hold” rating and a $16.00 price objective on the stock. Piper Sandler restated a “neutral” rating and set a $10.00 target price on shares of Rapid7 in a report on Wednesday. Needham & Company LLC reiterated a “hold” rating on shares of Rapid7 in a research report on Wednesday. Finally, JPMorgan Chase & Co. lowered their target price on Rapid7 from $22.00 to $20.00 and set a “neutral” rating for the company in a research note on Wednesday, November 5th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, sixteen have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Rapid7 has an average rating of “Hold” and a consensus target price of $15.16.

Insider Activity at Rapid7

In related news, Director Jana Partners Management, Lp acquired 41,545 shares of the stock in a transaction on Friday, November 28th. The stock was acquired at an average price of $15.71 per share, for a total transaction of $652,671.95. Following the completion of the purchase, the director owned 6,760,149 shares of the company’s stock, valued at $106,201,940.79. This represents a 0.62% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mike Burns purchased 2,000 shares of the company’s stock in a transaction that occurred on 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 purchase, the director owned 5,000 shares in the company, valued at $69,000. This represents a 66.67% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased 67,345 shares of company stock worth $1,025,202 over the last quarter. 2.40% of the stock is currently owned by company insiders.

Trending Headlines about 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

Hedge Funds Weigh In On Rapid7

Hedge funds have recently added to or reduced their stakes in the company. Sound Income Strategies LLC purchased a new stake in Rapid7 during the 4th quarter valued at $40,000. CI Investments Inc. boosted its holdings in shares of Rapid7 by 48.4% during the 3rd quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock valued at $43,000 after acquiring an additional 744 shares during the last quarter. Abich Financial Wealth Management LLC bought a new stake in shares of Rapid7 in the third quarter worth approximately $44,000. Headlands Technologies LLC purchased a new position in shares of Rapid7 during the second quarter valued at approximately $44,000. Finally, Parallel Advisors LLC raised its holdings in shares of Rapid7 by 81.6% during the fourth quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock valued at $46,000 after purchasing an additional 1,364 shares during the last quarter. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

Rapid7 Trading Down 24.6%

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 stock’s 50-day moving average is $14.00 and its two-hundred day moving average is $16.95. The company 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 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. Rapid7 had a net margin of 2.61% and a return on equity of 67.30%. The business had revenue of $217.39 million during the quarter, compared to analyst estimates of $215.17 million. During the same period in the previous year, the business earned $0.48 EPS. The company’s quarterly revenue was up .5% compared to the same quarter last year. 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 earnings per share for the current fiscal 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.