Rapid7 (NASDAQ:RPD) Price Target Lowered to $9.00 at Scotiabank

Rapid7 (NASDAQ:RPD) had its price target cut by stock analysts at Scotiabank from $18.00 to $9.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has a “sector perform” rating on the technology company’s stock. Scotiabank’s price objective indicates a potential downside of 13.38% from the company’s previous close.

A number of other analysts have also recently weighed in on the company. Piper Sandler reaffirmed a “neutral” rating and set a $10.00 price objective on shares of Rapid7 in a research report on Wednesday. Royal Bank Of Canada dropped their target price on Rapid7 from $19.00 to $16.00 and set a “sector perform” rating on the stock in a research report on Monday, January 5th. UBS Group reissued a “neutral” rating and issued a $9.00 price target on shares of Rapid7 in a report on Wednesday. Berenberg Bank started coverage on Rapid7 in a research note on Tuesday, November 18th. They issued a “hold” rating and a $16.00 price target on the stock. Finally, DA Davidson dropped their price objective on Rapid7 from $16.00 to $14.00 and set an “underperform” rating on the stock in a report on Wednesday, November 5th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, sixteen have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Rapid7 currently has an average rating of “Hold” and a consensus price target of $16.26.

Rapid7 Price Performance

Shares of NASDAQ RPD opened at $10.39 on Wednesday. The stock has a market cap of $680.34 million, a P/E ratio of 30.56 and a beta of 0.79. Rapid7 has a twelve month low of $10.20 and a twelve month high of $38.47. The stock has a 50 day moving average of $14.00 and a two-hundred day moving average of $16.95. 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 (NASDAQ:RPD) last announced its earnings results on Tuesday, February 10th. The technology company reported $0.44 EPS 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 for the quarter, compared to analysts’ expectations of $215.17 million. During the same period in the previous year, the company posted $0.48 EPS. The company’s quarterly 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. On average, research analysts forecast that Rapid7 will post 0.35 earnings per share for the current year.

Insider Activity at Rapid7

In other news, Director Mike Burns bought 2,000 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The shares were acquired at an average cost of $13.80 per share, with a total value of $27,600.00. Following the transaction, the director owned 5,000 shares of the company’s stock, valued at $69,000. This represents a 66.67% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Jana Partners Management, Lp acquired 41,545 shares of Rapid7 stock in a transaction dated Friday, November 28th. The stock was purchased at an average cost of $15.71 per share, for a total transaction of $652,671.95. Following the completion of the purchase, the director directly owned 6,760,149 shares in the company, valued at approximately $106,201,940.79. This represents a 0.62% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders bought 67,345 shares of company stock worth $1,025,202. 2.40% of the stock is owned by corporate insiders.

Institutional Trading of Rapid7

A number of hedge funds have recently made changes to their positions in RPD. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Rapid7 by 114.9% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,136,438 shares of the technology company’s stock worth $49,409,000 after acquiring an additional 1,142,148 shares in the last quarter. Penserra Capital Management LLC grew its position in Rapid7 by 45.3% in the 2nd 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. LSV Asset Management bought a new position in shares of Rapid7 in the third quarter valued at approximately $14,719,000. JANA Partners Management LP boosted its holdings in shares of Rapid7 by 13.5% in the third quarter. JANA Partners Management LP now owns 6,502,108 shares of the technology company’s stock valued at $121,915,000 after acquiring an additional 772,194 shares in the last quarter. Finally, Vanguard Group Inc. raised its holdings in Rapid7 by 7.6% during the fourth quarter. Vanguard Group Inc. now owns 9,273,763 shares of the technology company’s stock worth $140,961,000 after purchasing an additional 653,498 shares in the last quarter. Institutional investors and hedge funds own 95.66% of the company’s stock.

Key Headlines 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.