Needham & Company LLC Reaffirms Hold Rating for Rapid7 (NASDAQ:RPD)

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

Other equities research analysts have also issued reports about the company. Truist Financial dropped their target price on Rapid7 from $14.00 to $8.00 and set a “hold” rating on the stock in a research report on Wednesday. Piper Sandler reaffirmed a “neutral” rating and set a $10.00 target price on shares of Rapid7 in a research report on Wednesday. Morgan Stanley reissued an “outperform” rating and set a $18.00 price objective on shares of Rapid7 in a research report on Thursday, December 18th. Zacks Research downgraded shares of Rapid7 from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 27th. Finally, Royal Bank Of Canada lowered their price objective on Rapid7 from $19.00 to $16.00 and set a “sector perform” rating on the stock in a research note on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $17.58.

Rapid7 Stock Performance

Shares of NASDAQ:RPD opened at $10.39 on Wednesday. The company has a market cap of $680.34 million, a P/E ratio of 30.56 and a beta of 0.79. The business’s 50-day simple moving average is $14.00 and its 200 day simple moving average is $16.95. The company has a debt-to-equity ratio of 7.01, a quick ratio of 1.19 and a current ratio of 1.19. Rapid7 has a one year low of $10.20 and a one year high of $38.47.

Rapid7 (NASDAQ:RPD) last released 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. 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 last year, the business earned $0.48 EPS. The business’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. On average, sell-side analysts forecast that Rapid7 will post 0.35 earnings per share for the current fiscal year.

Insider Buying and Selling at Rapid7

In other news, Director Thomas E. Schodorf bought 6,300 shares of the firm’s stock in a transaction dated Wednesday, November 26th. The shares were bought at an average price of $15.70 per share, with a total value of $98,910.00. Following the completion of the transaction, the director owned 34,440 shares of the company’s stock, valued at $540,708. This trade represents a 22.39% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Corey E. Thomas acquired 14,500 shares of the stock in a transaction on Monday, November 24th. The shares were purchased at an average price of $13.82 per share, for a total transaction of $200,390.00. Following the transaction, the chief executive officer directly owned 595,066 shares in the company, valued at approximately $8,223,812.12. This trade represents a 2.50% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 67,345 shares of company stock worth $1,025,202 in the last ninety days. Insiders own 2.40% of the company’s stock.

Institutional Trading of Rapid7

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Acadian Asset Management LLC raised its stake in Rapid7 by 136.7% during the second quarter. Acadian Asset Management LLC now owns 169,955 shares of the technology company’s stock worth $3,924,000 after buying an additional 98,161 shares during the last quarter. Penserra Capital Management LLC increased its stake 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 valued at $63,172,000 after acquiring an additional 851,108 shares in the last quarter. CenterBook Partners LP lifted its position 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 valued at $5,866,000 after acquiring an additional 103,504 shares during the period. Assenagon Asset Management S.A. lifted 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 acquiring an additional 113,664 shares during the period. Finally, First Trust Advisors LP grew its holdings in Rapid7 by 4.6% in the second quarter. First Trust Advisors LP now owns 1,543,770 shares of the technology company’s stock worth $35,707,000 after purchasing an additional 67,801 shares during the period. 95.66% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about 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

About Rapid7

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.